Comparing Gulf Resources (NASDAQ:GURE) & China Carbon Graphite Group (OTCMKTS:CHGI)

China Carbon Graphite Group (OTCMKTS:CHGI) and Gulf Resources (NASDAQ:GURE) are both small-cap basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their dividends, risk, analyst recommendations, profitability, earnings, institutional ownership and valuation.

Analyst Recommendations

This is a summary of recent ratings and target prices for China Carbon Graphite Group and Gulf Resources, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
China Carbon Graphite Group	0	0	0	0	0.00
Gulf Resources	1	0	0	0	1.00

Insider and Institutional Ownership

3.3% of Gulf Resources shares are owned by institutional investors. 5.5% of China Carbon Graphite Group shares are owned by company insiders. Comparatively, 3.2% of Gulf Resources shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares China Carbon Graphite Group and Gulf Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
China Carbon Graphite Group	N/A	N/A	N/A
Gulf Resources	-195.79%	-18.32%	-15.71%

Volatility & Risk

China Carbon Graphite Group has a beta of -2.01, meaning that its stock price is 301% less volatile than the S&P 500. Comparatively, Gulf Resources has a beta of 0.38, meaning that its stock price is 62% less volatile than the S&P 500.

Valuation and Earnings

This table compares China Carbon Graphite Group and Gulf Resources”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
China Carbon Graphite Group	N/A	N/A	N/A	N/A	N/A
Gulf Resources	$13.92 million	0.38	-$58.94 million	($48.05)	-0.08

China Carbon Graphite Group has higher earnings, but lower revenue than Gulf Resources.

About China Carbon Graphite Group

China Carbon Graphite Group, Inc., together with its subsidiaries, engages in the research and development, manufacture, rework, and sale of graphene, graphene oxide, carbon graphite felt, and graphite bipolar plates in the People's Republic of China. Its graphene oxide is used as a conductive agent in lithium ion batteries, super capacitors, rubber and plastic additives, conductive inks, special coatings, transparent conductive thin films, and chips; and graphite bipolar plates are used in solar power storage. The company operates roycarbon.com, a business-to-business and business-to-consumers Internet portal for graphite related products. China Carbon Graphite Group, Inc. was founded in 1986 and is based in Diamond Bar, California.

About Gulf Resources

Gulf Resources, Inc., through its subsidiaries, manufactures and trades bromine and crude salt, chemical products, and natural gas in the People’s Republic of China. The company operates through four segments: Bromine, Crude salt, Chemical products, and Natural gas segments. It also provides bromine for use in bromine compounds, intermediates in organic synthesis, brominated flame retardants, fumigants, water purification compounds, dyes, medicines, and disinfectants. In addition, the company offers crude salt for use as a material in alkali and chlorine alkali production 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, and inorganic chemicals, as well as materials that are used for human and animal antibiotics. The company is based in Shouguang, the People’s Republic of China.