Methanex (NASDAQ:MEOH) versus China Carbon Graphite Group (OTCMKTS:CHGI) Financial Analysis

China Carbon Graphite Group (OTCMKTS:CHGI) and Methanex (NASDAQ:MEOH) are both basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.

Profitability

This table compares China Carbon Graphite Group and Methanex’s 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
Methanex	5.97%	9.07%	3.41%

Institutional and Insider Ownership

73.5% of Methanex shares are owned by institutional investors. 5.5% of China Carbon Graphite Group shares are owned by company insiders. Comparatively, 1.0% of Methanex shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares China Carbon Graphite Group and Methanex”s gross 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
Methanex	$3.72 billion	1.03	$163.99 million	$2.95	16.74

Methanex has higher revenue and earnings than China Carbon Graphite Group.

Volatility & Risk

China Carbon Graphite Group has a beta of -1.58, indicating that its share price is 258% less volatile than the S&P 500. Comparatively, Methanex has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for China Carbon Graphite Group and Methanex, 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
Methanex	0	5	6	1	2.67

Methanex has a consensus price target of $48.00, suggesting a potential downside of 2.77%. Given China Carbon Graphite Group’s higher probable upside, analysts plainly believe China Carbon Graphite Group is more favorable than Methanex.

Summary

Methanex beats China Carbon Graphite Group on 9 of the 11 factors compared between the two stocks.

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 Methanex

Methanex Corporation produces and supplies methanol in China, Europe, the United States, South America, South Korea, Canada, and Asia. The company also purchases methanol produced by others under methanol offtake contracts and on the spot market. In addition, it owns and leases storage and terminal facilities. The company owns and manages a fleet of approximately 30 ocean-going vessels. It serves chemical and petrochemical producers. Methanex Corporation was incorporated in 1968 and is headquartered in Vancouver, Canada.