Tantech (NASDAQ:TANH) versus Valhi (NYSE:VHI) Financial Survey

Tantech (NASDAQ:TANH) and Valhi (NYSE:VHI) are both small-cap basic materials companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, dividends, profitability, risk, earnings, analyst recommendations and institutional ownership.

Profitability

This table compares Tantech and Valhi’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tantech	N/A	N/A	N/A
Valhi	4.69%	7.02%	3.53%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Tantech and Valhi, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tantech	0	0	0	0	0.00
Valhi	1	0	0	0	1.00

Valhi has a consensus target price of $12.00, indicating a potential downside of 26.18%. Given Valhi’s stronger consensus rating and higher probable upside, analysts clearly believe Valhi is more favorable than Tantech.

Institutional and Insider Ownership

6.0% of Tantech shares are held by institutional investors. Comparatively, 3.8% of Valhi shares are held by institutional investors. 3.8% of Tantech shares are held by company insiders. Comparatively, 0.1% of Valhi shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Tantech and Valhi”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tantech	$42.94 million	0.00	-$3.24 million	N/A	N/A
Valhi	$2.10 billion	0.22	$108.00 million	$3.43	4.74

Valhi has higher revenue and earnings than Tantech.

Risk & Volatility

Tantech has a beta of 0.24, suggesting that its stock price is 76% less volatile than the S&P 500. Comparatively, Valhi has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500.

Summary

Valhi beats Tantech on 9 of the 11 factors compared between the two stocks.

About Tantech

Tantech Holdings Ltd, together with its subsidiaries, develops and manufactures bamboo-based charcoal products for industrial energy, household cooking, heating, purification, agricultural, and cleaning applications in the People's Republic of China and internationally. The company operates in three segments: Consumer Products, Electric Vehicles, and Biodegradable Packaging. It provides pressed and formed charcoal briquettes for use in grills, incense burners, and other applications under the Algold brand. The company also offers Charcoal Doctor branded products, such as air purifiers and humidifiers, automotive accessories for air purification, underfloor humidity control products, pillows and mattresses, wardrobe deodorizers, mouse pads and wrist mats, refrigerator deodorants, charcoal toilet cleaner disks, liquid charcoal cleaners, shoe insoles, and decorative charcoal gifts. In addition, it provides bamboo vinegar, a liquid byproduct for use in disinfectants, detergents, lotions, specialized soaps, toilet cleaners, and fertilizers, as well as in various agricultural applications; and trades in charcoal products. Further, the company develops and sells electric buses, electric logistics cars, and specialty electric vehicles, such as brushless cleaning cars, electric cleaning cars, special emergency vehicles, and funeral cars; and solar cells, lithium-ion batteries, auto parts, and electric control systems. It is also involved in the biodegradable packaging and supply chain businesses, as well as provides commercial factoring services. The company was founded in 1998 and is headquartered in Lishui, the People's Republic of China.

About Valhi

Valhi, Inc. engages in the chemicals, component products, and real estate management and development businesses in Europe, North America, the Asia Pacific, and internationally. The company’s Chemicals segment produces and markets titanium dioxide pigments (TiO2), which are white inorganic pigments used in various applications by paint, plastics, decorative laminate, and paper manufacturers. It offers TiO2 under the KRONOS name through agents and distributors. The company’s Component Products segment manufactures mechanical and electrical cabinet locks, and other locking mechanisms for use in ignition systems, mailboxes, file cabinets, desk drawers, tool storage cabinets, vending and cash containment machines, integrated inventory and access control secured narcotics boxes, medical cabinetry security, electronic circuit panels, storage compartments, and gas station security applications. It also provides stainless steel exhaust components, gauges, throttle controls, wake enhancement systems, trim tabs, and related hardware and accessories primarily for performance and ski/wakeboard boats. The company’s Real Estate Management and Development segment offers utility services to industrial and municipal customers; owns real properties; and develops land holdings for commercial, industrial, and residential purposes. It also holds marketable securities and other investments. The company was incorporated in 1932 and is based in Dallas, Texas. Valhi, Inc. is a subsidiary of Dixie Rice Agricultural L.L.C.