Head to Head Analysis: Concrete Pumping (NASDAQ:BBCP) and ARQ (NASDAQ:ARQ)

Concrete Pumping (NASDAQ:BBCP) and ARQ (NASDAQ:ARQ) are both small-cap business services companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, valuation, profitability, earnings, institutional ownership, analyst recommendations and risk.

Profitability

This table compares Concrete Pumping and ARQ’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Concrete Pumping	2.23%	3.47%	1.03%
ARQ	-43.93%	-2.67%	-2.00%

Earnings & Valuation

This table compares Concrete Pumping and ARQ”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Concrete Pumping	$392.87 million	1.49	$6.37 million	$0.14	82.79
ARQ	$120.34 million	0.83	-$52.61 million	($1.29)	-1.81

Concrete Pumping has higher revenue and earnings than ARQ. ARQ is trading at a lower price-to-earnings ratio than Concrete Pumping, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership

34.2% of Concrete Pumping shares are held by institutional investors. Comparatively, 18.5% of ARQ shares are held by institutional investors. 28.2% of Concrete Pumping shares are held by company insiders. Comparatively, 20.1% of ARQ shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Concrete Pumping has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500. Comparatively, ARQ has a beta of 1.99, suggesting that its share price is 99% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Concrete Pumping and ARQ, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Concrete Pumping	0	3	1	0	2.25
ARQ	1	1	2	0	2.25

Concrete Pumping currently has a consensus target price of $10.25, indicating a potential downside of 11.56%. ARQ has a consensus target price of $7.50, indicating a potential upside of 220.51%. Given ARQ’s higher possible upside, analysts clearly believe ARQ is more favorable than Concrete Pumping.

Summary

Concrete Pumping beats ARQ on 10 of the 13 factors compared between the two stocks.

About Concrete Pumping

Concrete Pumping Holdings, Inc. provides concrete pumping and waste management services in the United States and the United Kingdom. The company offers concrete pumping services to general contractors and concrete finishing companies in the commercial, infrastructure, and residential sectors under the Brundage-Bone and Capital Pumping brands; and industrial cleanup and containment services primarily to customers in the construction industry under the Eco-Pan brand. It leases and rents concrete pumping equipment, pans, and containers. As of October 31, 2023, the company owned a fleet of approximately 930 boom pumps, 90 placing booms, 20 telebelts, 300 stationary pumps, and 115 waste management trucks. Concrete Pumping Holdings, Inc. was founded in 1983 and is headquartered in Thornton, Colorado.

About ARQ

Arq, Inc. is a holding company. It engages in the provision of environmental and emission control equipment to the power generation industry. The company operates through the following Segments: Refined Coal and Advanced Purification Technologies. The Refined Coal segment includes the Tinuum Group, Tinuum Services, and GWN Manager. The Advanced Purification Technologies segment refers to the sale of Activated Carbon Injection and Dry Sorbent Injection equipment systems, chemical sales, consulting services, and other sales related to the reduction of emissions in the coal-fired electric generation process and the electric utility industry. The company was founded in 1996 and is headquartered in Greenwood Village, CO.