Critical Review: Guanwei Recycling (OTCMKTS:GPRC) and Atmus Filtration Technologies (NYSE:ATMU)

Guanwei Recycling (OTCMKTS:GPRC) and Atmus Filtration Technologies (NYSE:ATMU) are both industrials companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, profitability, institutional ownership, valuation, dividends, analyst recommendations and risk.

Valuation & Earnings

This table compares Guanwei Recycling and Atmus Filtration Technologies”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Guanwei Recycling	N/A	N/A	N/A	N/A	N/A
Atmus Filtration Technologies	$1.76 billion	2.68	$207.40 million	$2.50	23.21

Atmus Filtration Technologies has higher revenue and earnings than Guanwei Recycling.

Institutional and Insider Ownership

32.7% of Atmus Filtration Technologies shares are owned by institutional investors. 61.6% of Guanwei Recycling shares are owned by insiders. Comparatively, 0.2% of Atmus Filtration Technologies shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Guanwei Recycling and Atmus Filtration Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Guanwei Recycling	N/A	N/A	N/A
Atmus Filtration Technologies	11.76%	69.78%	17.30%

Analyst Recommendations

This is a breakdown of recent ratings for Guanwei Recycling and Atmus Filtration Technologies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Guanwei Recycling	0	0	0	0	0.00
Atmus Filtration Technologies	0	2	4	1	2.86

Atmus Filtration Technologies has a consensus target price of $59.75, indicating a potential upside of 2.96%. Given Atmus Filtration Technologies’ stronger consensus rating and higher probable upside, analysts plainly believe Atmus Filtration Technologies is more favorable than Guanwei Recycling.

Summary

Atmus Filtration Technologies beats Guanwei Recycling on 9 of the 10 factors compared between the two stocks.

About Guanwei Recycling

Guanwei Recycling Corp. manufactures and distributes low density polyethylene (LDPE) and other recycled plastics products primarily in the People's Republic of China and internationally. It imports and recycles LDPE plastic scrap material into granular plastic for use in the manufacture of various consumer products. The company's LDPE products are used in the manufacture of chemical and functional fibers, as well as a raw material in the manufacture of shoe soles, insulation materials, fire-proofing and water-proofing materials, and foam. It also sells its products to customers in a range of industries, including shoe manufacturing, architecture and engineering products, industrial equipment and supplies, and chemical and petrochemical manufacturing. Guanwei Recycling Corp. was founded in 2005 and is based in Fuqing, the People's Republic of China.

About Atmus Filtration Technologies

Atmus Filtration Technologies Inc. designs, manufactures, and sells filtration products under the Fleetguard brand name in North America, Europe, South America, Asia, Australia, Africa, and internationally. The company offers fuel filters, lube filters, air filters, crankcase ventilation, hydraulic filters, coolants, and fuel additives, as well as other chemicals; and fuel water separators and other filtration systems to original equipment manufacturers, dealers/distributors, and end-users. Its products are used in on-highway commercial vehicles and off-highway agriculture, construction, mining, and power generation vehicles and equipment. The company was founded in 1958 and is headquartered in Nashville, Tennessee.