Critical Analysis: Kiwa Bio-Tech Products Group (OTCMKTS:KWBT) and Innospec (NASDAQ:IOSP)

Innospec (NASDAQ:IOSP) and Kiwa Bio-Tech Products Group (OTCMKTS:KWBT) are both basic materials companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Earnings and Valuation

This table compares Innospec and Kiwa Bio-Tech Products Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Innospec	$1.79 billion	0.98	$35.60 million	($0.03)	-2,368.33
Kiwa Bio-Tech Products Group	N/A	N/A	N/A	N/A	N/A

Innospec has higher revenue and earnings than Kiwa Bio-Tech Products Group.

Profitability

This table compares Innospec and Kiwa Bio-Tech Products Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Innospec	1.08%	10.89%	7.70%
Kiwa Bio-Tech Products Group	N/A	N/A	N/A

Institutional and Insider Ownership

96.6% of Innospec shares are held by institutional investors. 1.3% of Innospec shares are held by company insiders. Comparatively, 1.3% of Kiwa Bio-Tech Products Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations for Innospec and Kiwa Bio-Tech Products Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Innospec	2	0	0	1	2.00
Kiwa Bio-Tech Products Group	0	0	0	0	0.00

Summary

Innospec beats Kiwa Bio-Tech Products Group on 8 of the 8 factors compared between the two stocks.

About Innospec

Innospec Inc. develops, manufactures, blends, markets, and supplies specialty chemicals in the United States, rest of North America, the United Kingdom, rest of Europe, and internationally. The company's Fuel Specialties segment offers a range of specialty chemical products that are used as additives in additives in diesel, jet, marine, fuel oil and other fuels. This segment's products are used in the operation of commercial trucking, marine and aviation engines, power station generators, heating oil, and other industrial machinery applications. Its Performance Chemicals segment provides technology-based solutions for its customers' processes or products that focuses on the personal care, home care, agrochemical, construction, mining, and other industrial markets. The company's Oilfield Services segment develops and markets chemical solutions for drilling, completion, fracturing, stimulation, and completion operations; and products for oil and gas production. It sells its products primarily to oil and gas exploration and production companies, oil refineries, fuel manufacturers and users, personal care and home care companies, formulators of agrochemical, and other chemical and industrial companies. The company was formerly known as Octel Corp. and changed its name to Innospec Inc. in January 2006. Innospec Inc. was founded in 1938 and is headquartered in Englewood, Colorado.

About Kiwa Bio-Tech Products Group

Kiwa Bio-Tech Products Group Corporation, together with its subsidiaries, develops, manufactures, markets, and distributes bio-technological products for the agricultural market primarily in the People's Republic of China. It offers bacillus species and/or photosynthetic bacteria based biological organic, compound microbial, bio-water soluble, and microbial inoculum fertilizers. The company has a strategic cooperation agreements with the Beijing Zhongpin Agricultural Science and Technology Development Center; China Academy of Agricultural Science's Institute of Agricultural Resources & Regional Planning; and Institute of Agricultural Economy & Development, as well as Kiwa Bio-Tech (Yangling) Co. Ltd. Kiwa Bio-Tech Products Group Corporation was founded in 2002 and is headquartered in Yangling, China.