Financial Analysis: OriginClear (OTCMKTS:OCLN) and Veeco Instruments (NASDAQ:VECO)

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

Analyst Recommendations

This is a breakdown of current ratings for OriginClear and Veeco Instruments, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
OriginClear	0	0	0	0	0.00
Veeco Instruments	0	3	4	0	2.57

Veeco Instruments has a consensus target price of $42.14, indicating a potential upside of 52.53%. Given Veeco Instruments’ stronger consensus rating and higher possible upside, analysts clearly believe Veeco Instruments is more favorable than OriginClear.

Volatility and Risk

OriginClear has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500. Comparatively, Veeco Instruments has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500.

Valuation & Earnings

This table compares OriginClear and Veeco Instruments”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
OriginClear	$30,000.00	263.22	-$11.63 million	N/A	N/A
Veeco Instruments	$666.43 million	2.35	-$30.37 million	$1.35	20.47

OriginClear has higher earnings, but lower revenue than Veeco Instruments.

Profitability

This table compares OriginClear and Veeco Instruments’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
OriginClear	-998.01%	N/A	-11.62%
Veeco Instruments	11.34%	10.92%	6.20%

Institutional & Insider Ownership

98.5% of Veeco Instruments shares are held by institutional investors. 0.4% of OriginClear shares are held by company insiders. Comparatively, 2.2% of Veeco Instruments shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Veeco Instruments beats OriginClear on 10 of the 12 factors compared between the two stocks.

About OriginClear

OriginClear, Inc. provides water treatment solutions worldwide. The company designs and manufactures a line of water treatment systems for municipal, industrial, and pure water applications. It also 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 systems. 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.

About Veeco Instruments

Veeco Instruments Inc., together with its subsidiaries, develops, manufactures, sells, and supports semiconductor and thin film process equipment primarily to make electronic devices in the United States, Europe, the Middle East, and Africa, China, Rest of the Asia-Pacific, and internationally. The company offers laser annealing, ion beam deposition and etch, metal organic chemical vapor deposition, single wafer wet processing and surface preparation, molecular beam epitaxy, advanced packaging lithography, atomic layer deposition, and other deposition systems. Its process equipment systems are used in the production of a range of microelectronic components, including logic, dynamic random-access memory, photonics devices, power electronics, radio frequency filters and amplifiers, magnetic heads for hard disk drives, and other semiconductor devices. In addition, the company markets and sells its products to integrated device manufacturers and foundries; outsourced semiconductor assembly and test companies; and hard disk drive and photonics manufacturers, as well as research centers and universities. Veeco Instruments Inc. was founded in 1945 and is headquartered in Plainview, New York.