Northern Technologies International (NASDAQ:NTIC) & Gulf Resources (NASDAQ:GURE) Head-To-Head Contrast

Gulf Resources (NASDAQ:GURE) and Northern Technologies International (NASDAQ:NTIC) are both small-cap basic materials companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, earnings, dividends, institutional ownership, profitability and analyst recommendations.

Profitability

This table compares Gulf Resources and Northern Technologies International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gulf Resources	-195.79%	-18.32%	-15.71%
Northern Technologies International	0.02%	-0.02%	-0.01%

Risk and Volatility

Gulf Resources has a beta of 0.38, indicating that its share price is 62% less volatile than the S&P 500. Comparatively, Northern Technologies International has a beta of 0.19, indicating that its share price is 81% less volatile than the S&P 500.

Insider & Institutional Ownership

3.3% of Gulf Resources shares are held by institutional investors. Comparatively, 32.9% of Northern Technologies International shares are held by institutional investors. 3.2% of Gulf Resources shares are held by company insiders. Comparatively, 24.3% of Northern Technologies International shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings for Gulf Resources and Northern Technologies International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gulf Resources	1	0	0	0	1.00
Northern Technologies International	2	0	0	0	1.00

Valuation & Earnings

This table compares Gulf Resources and Northern Technologies International”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gulf Resources	$13.92 million	0.45	-$58.94 million	($48.05)	-0.10
Northern Technologies International	$84.24 million	0.83	$20,000.00	($0.01)	-740.00

Northern Technologies International has higher revenue and earnings than Gulf Resources. Northern Technologies International is trading at a lower price-to-earnings ratio than Gulf Resources, indicating that it is currently the more affordable of the two stocks.

Summary

Northern Technologies International beats Gulf Resources on 9 of the 11 factors compared between the two stocks.

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.

About Northern Technologies International

Northern Technologies International Corporation develops and markets rust and corrosion inhibiting solutions in North America, South America, Europe, Asia, the Middle East and internationally. It offers rust and corrosion inhibiting products, such as plastic and paper packaging, liquids, coatings, rust removers, cleaners, diffusers, and engineered solutions designed for the oil and gas industry under the ZERUST brand. The company provides a portfolio of bio-based and certified compostable polymer resin compounds and finished products under the Natur-Tec brand. In addition, it offers on-site and technical consulting for rust and corrosion prevention issues. It sells its products and services to automotive, electronics, electrical, mechanical, military, retail consumer, and oil and gas markets through direct sales force, network of independent distributors, agents, manufacturer's sales representatives, and strategic partners. The company was founded in 1970 and is headquartered in Circle Pines, Minnesota.