Critical Analysis: Northern Technologies International Corporation (NTIC) & PMFG (PMFG)
Northern Technologies International Corporation (NASDAQ: NTIC) and PMFG (NASDAQ:PMFG) are both small-cap basic materials companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, earnings, valuation, profitability, analyst recommendations and risk.
This is a breakdown of current ratings and recommmendations for Northern Technologies International Corporation and PMFG, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Northern Technologies International Corporation||0||0||0||0||N/A|
Insider & Institutional Ownership
26.0% of Northern Technologies International Corporation shares are owned by institutional investors. 19.0% of Northern Technologies International Corporation shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
This table compares Northern Technologies International Corporation and PMFG’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Northern Technologies International Corporation||1.56%||5.24%||4.79%|
Valuation and Earnings
This table compares Northern Technologies International Corporation and PMFG’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Northern Technologies International Corporation||$32.93 million||2.41||-$860,000.00||$0.14||125.36|
PMFG has higher revenue, but lower earnings than Northern Technologies International Corporation. PMFG is trading at a lower price-to-earnings ratio than Northern Technologies International Corporation, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Northern Technologies International Corporation has a beta of 1.36, suggesting that its stock price is 36% more volatile than the S&P 500. Comparatively, PMFG has a beta of 1.54, suggesting that its stock price is 54% more volatile than the S&P 500.
Northern Technologies International Corporation beats PMFG on 7 of the 8 factors compared between the two stocks.
Northern Technologies International Corporation Company Profile
Northern Technologies International Corporation develops and markets environmentally beneficial products and services. The Company’s primary business is corrosion prevention marketed mainly under ZERUST and EXCOR brands (collectively ZERUST). The Company’s segments include ZERUST and Natur-Tec. The Company is engaged in selling its ZERUST products and services to the automotive, electronics, electrical, mechanical, military and retail consumer markets. The Company’s ZERUST rust and corrosion inhibiting products include plastic and paper packaging, liquids and coatings, rust removers and cleaners, diffusers and engineered solutions designed specifically for the oil and gas industry. The Company also offers onsite technical consulting for rust and corrosion prevention issues across the world. The Company manufactures and sells a range of bio-based and compostable (fully biodegradable) polymer resin compounds and finished products under the Natur-Tec brand.
PMFG Company Profile
PMFG, Inc. is a provider of custom-engineered systems and products designed for the delivery of energy. The Company operates in two segments: Process Products and Environmental Systems. The Process Products segment produces specialized systems and products that remove contaminants from gases and liquids, reducing maintenance and extending the life of energy infrastructure. The Process Products segment also includes industrial silencing equipment to control noise pollution on a range of industrial equipment and pulsation dampeners that reduce vibration. The Environmental Systems segment designs, engineers and installs systems for combustion modification, fuel conversions and post-combustion nitrogen oxide (NOX) control for both new and existing sources. The Company’s environmental control systems are used for air pollution abatement and converting burners to accommodate alternative sources of fuel.
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