Chemours (NYSE:CC) and Gulf Resources (NASDAQ:GURE) are both basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, institutional ownership, dividends, risk, analyst recommendations, earnings and valuation.
Volatility & Risk
Chemours has a beta of 2.57, suggesting that its stock price is 157% more volatile than the S&P 500. Comparatively, Gulf Resources has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.
This table compares Chemours and Gulf Resources’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
75.7% of Chemours shares are held by institutional investors. Comparatively, 7.0% of Gulf Resources shares are held by institutional investors. 2.3% of Chemours shares are held by company insiders. Comparatively, 30.8% of Gulf Resources shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Chemours pays an annual dividend of $1.00 per share and has a dividend yield of 6.2%. Gulf Resources does not pay a dividend. Chemours pays out 17.6% of its earnings in the form of a dividend.
This is a summary of current ratings and price targets for Chemours and Gulf Resources, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Chemours currently has a consensus price target of $27.14, indicating a potential upside of 68.97%. Given Chemours’ higher possible upside, equities analysts clearly believe Chemours is more favorable than Gulf Resources.
Valuation and Earnings
This table compares Chemours and Gulf Resources’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Chemours||$6.64 billion||0.40||$995.00 million||$5.67||2.83|
|Gulf Resources||$2.60 million||9.88||-$69.96 million||N/A||N/A|
Chemours has higher revenue and earnings than Gulf Resources.
Chemours beats Gulf Resources on 10 of the 13 factors compared between the two stocks.
The Chemours Company provides performance chemicals in North America, the Asia Pacific, Europe, the Middle East, Africa, and Latin America. It operates through three segments: Titanium Technologies, Fluoroproducts, and Chemical Solutions. The Titanium Technologies segment manufactures and sells titanium dioxide under the Ti-Pure and BaiMax brands for various applications in architectural and industrial coatings, flexible and rigid plastic packaging, polyvinylchloride window profiles, laminate papers used for furniture and building materials, and coated papers and paperboards used for packaging. The Fluoroproducts segment provides fluoroproducts, including refrigerants, and industrial fluoropolymer resins and derivatives under the Teflon, Viton, Krytox, and Nafion brand names. The Chemical Solutions segment offers industrial and specialty chemicals for gold production, oil and gas, water treatment, electronics, and automotive industries. It also provides sodium cyanide through its mining solutions business; and performance chemicals and intermediates, such as methylamines, glycolic acid, and Vazo free radical initiators. The Chemours Company was founded in 2014 and is headquartered in Wilmington, Delaware.
About Gulf Resources
Gulf Resources, Inc., through its subsidiaries, manufactures and trades in bromine, crude salt, chemical products, and natural gas in the People’s Republic of China. It provides bromine for use in brominated flame retardants, fumigants, water purification compounds, dyes, medicines, and disinfectants. The company also offers crude salt for use as a material in alkali and chlorine alkali production; and for use in the chemical, food and beverage, and other industries. In addition, it manufactures and sells chemical products for use in oil and gas field exploration, oil and gas distribution, oil field drilling, papermaking chemical agents, inorganic chemicals, and materials that are used for human and animal antibiotics. Gulf Resources, Inc. is based in Shouguang, the People’s Republic of China.
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