Comparing CECO Environmental (NASDAQ:CECO) and Scope Industries (OTCMKTS:SCPJ)

CECO Environmental (NASDAQ:CECO) and Scope Industries (OTCMKTS:SCPJ) are both industrials companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, profitability, earnings, risk, analyst recommendations, institutional ownership and dividends.

Risk and Volatility

CECO Environmental has a beta of 1.38, meaning that its share price is 38% more volatile than the S&P 500. Comparatively, Scope Industries has a beta of -0.56, meaning that its share price is 156% less volatile than the S&P 500.

Profitability

This table compares CECO Environmental and Scope Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CECO Environmental	7.22%	10.84%	3.60%
Scope Industries	N/A	N/A	N/A

Earnings and Valuation

This table compares CECO Environmental and Scope Industries”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CECO Environmental	$557.93 million	4.53	$12.96 million	$1.41	50.26
Scope Industries	N/A	N/A	N/A	N/A	N/A

CECO Environmental has higher revenue and earnings than Scope Industries.

Analyst Recommendations

This is a breakdown of current ratings and price targets for CECO Environmental and Scope Industries, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CECO Environmental	0	1	6	0	2.86
Scope Industries	0	0	0	0	0.00

CECO Environmental currently has a consensus price target of $64.75, indicating a potential downside of 8.62%. Given CECO Environmental’s stronger consensus rating and higher possible upside, equities research analysts plainly believe CECO Environmental is more favorable than Scope Industries.

Institutional and Insider Ownership

68.1% of CECO Environmental shares are owned by institutional investors. 16.9% of CECO Environmental shares are owned by insiders. Comparatively, 68.1% of Scope Industries shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

CECO Environmental beats Scope Industries on 9 of the 10 factors compared between the two stocks.

About CECO Environmental

CECO Environmental Corp. provides critical solutions in industrial air quality, industrial water treatment, and energy transition solutions worldwide. It operates in two segments: Engineered Systems and Industrial Process Solutions. The company engineers, designs, manufactures, and installs non-metallic expansion joints and flow control products, including rubber expansion joints, ducting expansion joints, and industrial pinch and duck bill valves; membrane-based industrial water and wastewater treatment systems; and provides dust and fume extraction solutions comprising consultation, design, manufacturing, installation, and service, as well as water and wastewater treatment solutions. It offers engineered and configured products and solutions, including dampers and diverters, expansion joints, selective catalytic reduction systems, severe-service and industrial cyclones, dust collectors, thermal oxidizers, filtration systems, wet and dry scrubbers, separators and coalescers, water treatment packages, metallic and non-metallic pumps, industrial silencers, and fluid handling equipment, as well as plant engineering services and engineered design build fabrication services. In addition, the company offers industrial engineered noise control solutions, including custom acoustical gen-set packages, ambient air baffles, acoustical louvres, and skid enclosures; process filtration solutions for hydrocarbon and chemical processing; and energy and water conservation systems and equipment. The company markets its products and services to natural gas processors, transmission and distribution companies, refineries, power generators, industrial manufacturing, engineering and construction companies, semiconductor manufacturers, compressor manufacturers, beverage can manufacturers, metals and minerals, and electric vehicle producers. CECO Environmental Corp. was founded in 1869 and is headquartered in Dallas, Texas.

About Scope Industries

Scope Industries offers waste material recycling services in the United States. It operates plants for the collection and processing of bakery waste materials into a food supplement for animals. The company sells this food supplement to poultry farms, dairies, feed lots, and pet food manufacturers. Scope Industries also owns and operates a plant in Vernon, California, where certain bakery waste material is processed and converted into edible breadcrumbs for human consumption. The company's customers include prepackaged and restaurant supply food processors. Scope Industries was organized in 1938 and its principal executive offices are located in Santa Monica, California. Scope Industries sold all of the outstanding shares of its wholly owned subsidiary, Scope Beauty Enterprises, Inc., doing business as Marinello Schools of Beauty, to B & H Education, Inc. in March 2004.