Comparing Cricut (NASDAQ:CRCT) & OriginClear (OTCMKTS:OCLN)

Cricut (NASDAQ:CRCT) and OriginClear (OTCMKTS:OCLN) are both small-cap business services companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, earnings, analyst recommendations, risk, profitability, valuation and institutional ownership.

Earnings & Valuation

This table compares Cricut and OriginClear’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cricut	$741.49 million	1.69	$53.64 million	$0.29	19.93
OriginClear	$30,000.00	391.10	-$11.63 million	N/A	N/A

Cricut has higher revenue and earnings than OriginClear.

Profitability

This table compares Cricut and OriginClear’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cricut	9.16%	13.18%	9.26%
OriginClear	N/A	N/A	-9.16%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Cricut and OriginClear, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cricut	2	2	0	0	1.50
OriginClear	0	0	0	0	N/A

Cricut presently has a consensus target price of $5.09, suggesting a potential downside of 11.98%. Given Cricut’s higher possible upside, equities research analysts clearly believe Cricut is more favorable than OriginClear.

Institutional & Insider Ownership

19.6% of Cricut shares are owned by institutional investors. 18.0% of Cricut shares are owned by insiders. Comparatively, 0.4% of OriginClear shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Risk and Volatility

Cricut has a beta of 0.11, suggesting that its stock price is 89% less volatile than the S&P 500. Comparatively, OriginClear has a beta of 1.04, suggesting that its stock price is 4% more volatile than the S&P 500.

Summary

Cricut beats OriginClear on 8 of the 10 factors compared between the two stocks.

About Cricut

Cricut, Inc. engages in the design, marketing, and distribution of a creativity platform that enables users to turn ideas into professional-looking handmade goods. It operates through three segments: Connected Machines, Subscriptions, and Accessories and Materials. The company offers connected machines, design apps, and accessories and materials for users to create personalized birthday cards, mugs, T-shirts, and large-scale interior decorations. Its connected machines include Cricut Joy family for personalization, organization, and customization; Cricut Explore family for cutting, writing, and scoring; Cricut Maker family for cutting, writing, scoring, and adding decorative effects to various materials, such as paper, vinyl, iron-on vinyl, pens, and others; and Cricut Venture for cutting, writing, and scoring large-format projects at professional speeds. The company also provides Cricut Access and Cricut Access Premium subscription offerings, and in-app purchases; and a software that integrates its connected machines and design apps comprising Cricut Joy App, Design Space, and other design apps. In addition, it offers a range of accessories and materials, such as Cricut EasyPress, Cricut Mug Press, hand tools, machine replacement tools and blades, and project materials. The company offers its products through its third-party brick-and-mortar and online retail partners; and its website cricut.com, as well as through a network of distributors. It operates in the United States, Canada, the United Kingdom, Ireland, Australia, New Zealand, and Western Europe, as well as the Middle East, Latin America, South Africa, and Asia. The company was formerly known as Provo Craft & Novelty, Inc. and changed its name to Cricut, Inc. in March 2018. The company was incorporated in 1969 and is headquartered in South Jordan, Utah.

About OriginClear

OriginClear, Inc. provides water treatment solutions worldwide. It licenses its Electro Water Separation water cleanup technology that utilizes a catalytic process to concentrate and eliminate suspended solids in commercial and industrial wastewater; and Advanced Oxidation technology for reducing or eliminating dissolved organic microtoxins, which includes bacteria and viruses, hormones, drugs, and pesticides. The company also designs and manufactures a line of water treatment systems for municipal, industrial, commercial, and pure water applications. In addition, it offers a range of services, including maintenance contracts, retrofits, and replacement assistance; and rents equipment through contracts of varying duration, as well as provides prefabricated water transport and treatment products. The company was formerly known as OriginOil, Inc. and changed its name to OriginClear, Inc. in April 2015. OriginClear, Inc. was incorporated in 2007 and is headquartered in Clearwater, Florida.