ARQ (NASDAQ:ARQ) and Orion (NYSE:OEC) Head to Head Analysis

Orion (NYSE:OEC) and ARQ (NASDAQ:ARQ) are both small-cap basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, risk, analyst recommendations, earnings, institutional ownership, valuation and dividends.

Valuation and Earnings

This table compares Orion and ARQ’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Orion	$1.89 billion	0.69	$103.50 million	$1.48	15.14
ARQ	$99.18 million	2.18	-$12.25 million	($0.27)	-22.19

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

Institutional & Insider Ownership

94.3% of Orion shares are owned by institutional investors. Comparatively, 18.5% of ARQ shares are owned by institutional investors. 6.3% of Orion shares are owned by insiders. Comparatively, 22.2% of ARQ shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Orion	4.64%	21.07%	5.47%
ARQ	-8.15%	-4.65%	-3.51%

Volatility and Risk

Orion has a beta of 1.53, indicating that its share price is 53% more volatile than the S&P 500. Comparatively, ARQ has a beta of 1.4, indicating that its share price is 40% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Orion and ARQ, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Orion	0	2	2	0	2.50
ARQ	0	0	0	0	N/A

Orion currently has a consensus price target of $26.25, suggesting a potential upside of 17.14%. Given Orion’s higher probable upside, equities analysts clearly believe Orion is more favorable than ARQ.

Summary

Orion beats ARQ on 11 of the 13 factors compared between the two stocks.

About Orion

Orion S.A., together with its subsidiaries, engages in the manufacture and sale of carbon black products. It operates in two segments, Specialty Carbon Black and Rubber Carbon Black. The company offers post-treated specialty carbon black grades for coatings and printing applications; high purity carbon black grades for the fiber industry; and conductive carbon black grades for batteries, polymers, and coatings. It also provides rubber carbon black products for applications in mechanical rubber goods, as well as in tires under the ECORAX brand name; and acetylene-based conductive additives for lithium-ion batteries and other applications. It operates in the United States, Brazil, rest of the Americas, Germany, South Africa, Italy, Spain, Turkey, France, Rest of EMEA, China, the Republic of Korea, and rest of Asia. The company was formerly known as Orion Engineered Carbons S.A. and changed its name to Orion S.A. in June 2023. Orion S.A. was founded in 1862 and is headquartered in Senningerberg, Luxembourg.

About ARQ

Arq, Inc. produces activated carbon products in North America. The company's products include granular activated carbon, powdered and granular activated carbon, and colloidal carbon products; Arq Powder Wetcake, a fine and low-ash coal waste-derived particle; and additives for air emissions control. Its products are used in various applications, including water treatment, ground water remediation, soil sediments, air emissions, and asphalt additives. The company was formerly known as Advanced Emissions Solutions, Inc. and changed its name to Arq, Inc. in February 2024. Arq, Inc. was founded in 1997 and is headquartered in Greenwood Village, Colorado.