Head-To-Head Review: Tetra Tech (NASDAQ:TTEK) vs. CECO Environmental (NASDAQ:CECO)

CECO Environmental (NASDAQ:CECO) and Tetra Tech (NASDAQ:TTEK) are both mid-cap industrials companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, valuation, earnings, risk, analyst recommendations and profitability.

Volatility & Risk

CECO Environmental has a beta of 1.38, indicating that its share price is 38% more volatile than the S&P 500. Comparatively, Tetra Tech has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500.

Institutional & Insider Ownership

68.1% of CECO Environmental shares are owned by institutional investors. Comparatively, 93.9% of Tetra Tech shares are owned by institutional investors. 16.9% of CECO Environmental shares are owned by insiders. Comparatively, 0.5% of Tetra Tech shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for CECO Environmental and Tetra Tech, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CECO Environmental	0	1	6	0	2.86
Tetra Tech	0	3	4	0	2.57

CECO Environmental currently has a consensus price target of $64.75, suggesting a potential downside of 18.18%. Tetra Tech has a consensus price target of $42.60, suggesting a potential upside of 16.11%. Given Tetra Tech’s higher probable upside, analysts plainly believe Tetra Tech is more favorable than CECO Environmental.

Profitability

This table compares CECO Environmental and Tetra Tech’s 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%
Tetra Tech	6.73%	23.84%	9.69%

Valuation and Earnings

This table compares CECO Environmental and Tetra Tech”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CECO Environmental	$557.93 million	5.06	$12.96 million	$1.41	56.13
Tetra Tech	$5.44 billion	1.76	$247.72 million	$1.33	27.59

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

Summary

CECO Environmental beats Tetra Tech on 8 of the 14 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 Tetra Tech

Tetra Tech, Inc. provides consulting and engineering services in the United States and internationally. The company operates through two segments, Government Services Group (GSG) and Commercial/International Services Group (CIG). The GSG segment offers early data collection and monitoring, data analysis and information management, science and engineering applied research, engineering design, project management, and operations and maintenance services; and climate change and energy management consulting, as well as greenhouse gas inventory assessment, certification, reduction, and management services. This segment serves federal, state, and local governments; and development agencies in water resources analysis and water management, environmental monitoring, data analytics, government consulting, waste management, and a range of civil infrastructure master planning and engineering design markets. The CIG segment provides early data collection and monitoring, data analysis and information management, feasibility studies and assessments, science and engineering applied research, engineering design, project management, and operations and maintenance services; and environmental remediation and reconstruction services, and industrial water treatment services. This segment serves natural resources, energy, and utilities markets, as well as sustainable infrastructure master planning and engineering design for facilities, transportation, and local development projects. Tetra Tech, Inc. was founded in 1966 and is headquartered in Pasadena, California.