Zentek (NASDAQ:ZTEK – Get Free Report) and Orion (NYSE:OEC – Get Free Report) are both small-cap business services companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, earnings, analyst recommendations, institutional ownership and valuation.
Insider & Institutional Ownership
0.7% of Zentek shares are held by institutional investors. Comparatively, 89.9% of Orion shares are held by institutional investors. 6.3% of Orion shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares Zentek and Orion’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Zentek | N/A | -44.21% | -40.06% |
| Orion | 5.92% | 27.96% | 6.80% |
Risk and Volatility
Analyst Ratings
This is a summary of current ratings and price targets for Zentek and Orion, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Zentek | 0 | 0 | 0 | 0 | N/A |
| Orion | 0 | 1 | 2 | 0 | 2.67 |
Orion has a consensus target price of $26.50, suggesting a potential upside of 22.29%. Given Orion’s higher possible upside, analysts clearly believe Orion is more favorable than Zentek.
Valuation & Earnings
This table compares Zentek and Orion’s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Zentek | $50,000.00 | 2,464.16 | -$10.90 million | ($0.08) | -15.25 |
| Orion | $2.03 billion | 0.62 | $106.20 million | $1.93 | 11.23 |
Orion has higher revenue and earnings than Zentek. Zentek is trading at a lower price-to-earnings ratio than Orion, indicating that it is currently the more affordable of the two stocks.
Summary
Orion beats Zentek on 12 of the 13 factors compared between the two stocks.
About Zentek
Zentek Ltd. engages in the research and development of graphene and related nanomaterials in Canada. It owns 100% interest in the Albany Graphite project located in Northern Ontario, Canada. The company develops graphene-based antimicrobial coating under the ZenGUARD brand, surgical masks, HVAC filters, personal protective equipment, rapid detection point of care diagnostics tests, and pharmaceutical products based on graphene-based compound. In addition, it develops graphene oxide synthesis and graphene synthesis. The company was formerly known as ZEN Graphene Solutions Ltd. and changed its name to Zentek Ltd. in October 2021. Zentek Ltd. was incorporated in 2008 and is headquartered in Thunder Bay, Canada.
About Orion
Orion S.A., together with its subsidiaries, manufactures and sells 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 polymers, coatings, and battery electrodes. It also provides rubber carbon black products for applications in mechanical rubber goods under the PUREX brand, as well as in tires under the ECORAX brand name. It operates in Germany, the United States, South Korea, Brazil, China, South Africa, Rest of Europe, and internationally. 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 based in Houston, Texas.
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