US Ecology (NASDAQ: ECOL) and Marathon Patent Group (NASDAQ:MARA) are both small-cap business services companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, earnings, dividends and risk.
Dividends
US Ecology pays an annual dividend of $0.72 per share and has a dividend yield of 1.5%. Marathon Patent Group does not pay a dividend. US Ecology pays out 56.3% of its earnings in the form of a dividend.
Risk and Volatility
US Ecology has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500. Comparatively, Marathon Patent Group has a beta of 0.46, suggesting that its share price is 54% less volatile than the S&P 500.
Analyst Ratings
This is a summary of current ratings and target prices for US Ecology and Marathon Patent Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| US Ecology | 1 | 1 | 2 | 0 | 2.25 |
| Marathon Patent Group | 0 | 0 | 1 | 0 | 3.00 |
US Ecology currently has a consensus price target of $53.75, indicating a potential upside of 12.33%. Marathon Patent Group has a consensus price target of $3.00, indicating a potential upside of 1,100.00%. Given Marathon Patent Group’s stronger consensus rating and higher possible upside, analysts plainly believe Marathon Patent Group is more favorable than US Ecology.
Earnings & Valuation
This table compares US Ecology and Marathon Patent Group’s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| US Ecology | $478.29 million | 2.18 | $106.70 million | $1.28 | 37.38 |
| Marathon Patent Group | $34.65 million | 0.17 | $8.58 million | ($1.86) | -0.13 |
US Ecology has higher revenue and earnings than Marathon Patent Group. Marathon Patent Group is trading at a lower price-to-earnings ratio than US Ecology, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
84.8% of US Ecology shares are owned by institutional investors. Comparatively, 5.7% of Marathon Patent Group shares are owned by institutional investors. 1.3% of US Ecology shares are owned by insiders. Comparatively, 19.8% of Marathon Patent Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares US Ecology and Marathon Patent Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| US Ecology | 5.86% | 11.37% | 4.11% |
| Marathon Patent Group | -81.91% | -1,139.06% | -92.34% |
Summary
US Ecology beats Marathon Patent Group on 11 of the 15 factors compared between the two stocks.
US Ecology Company Profile
US Ecology, Inc. is a provider of environmental services to commercial and government entities. The Company offers treatment, disposal and recycling of hazardous, non-hazardous and radioactive waste, as well as a range of field and industrial services. The Company operates in two business segments: Environmental Services, and Field & Industrial Services. Its Environmental Services segment provides a range of hazardous material management services, including transportation, recycling, treatment and disposal of hazardous and non-hazardous waste at Company-owned landfill, wastewater and other treatment facilities. The Company’s Field & Industrial Services segment provides packaging and collection of hazardous waste and total waste management solutions at customer sites and through its transfer facilities. Its services include on-site management, waste characterization, transportation and disposal of non-hazardous and hazardous waste.
Marathon Patent Group Company Profile
Marathon Patent Group Inc. (MARA) is engaged in acquiring patents and patent rights from owners or other ventures. The Company monetizes its portfolio of patents and patent rights by entering into license discussions. The Company owns around 378 United States and foreign patents, and patent rights across a range of technologies and markets. The Company owns around 22 patent applications across a range of technologies and markets.
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