Gulf Resources (NASDAQ:GURE) and Johnson Matthey (OTCMKTS:JMPLY) are both basic materials companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, institutional ownership, analyst recommendations, risk, valuation, dividends and profitability.

Analyst Ratings

This is a breakdown of recent ratings for Gulf Resources and Johnson Matthey, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Gulf Resources 0 0 0 0 N/A
Johnson Matthey 0 0 3 0 3.00

Volatility & Risk

Gulf Resources has a beta of 1.09, meaning that its share price is 9% more volatile than the S&P 500. Comparatively, Johnson Matthey has a beta of 1.48, meaning that its share price is 48% more volatile than the S&P 500.

Institutional and Insider Ownership

6.8% of Gulf Resources shares are owned by institutional investors. Comparatively, 0.0% of Johnson Matthey shares are owned by institutional investors. 30.1% of Gulf Resources shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

Johnson Matthey pays an annual dividend of $1.15 per share and has a dividend yield of 1.5%. Gulf Resources does not pay a dividend. Johnson Matthey pays out 20.8% of its earnings in the form of a dividend.

Profitability

This table compares Gulf Resources and Johnson Matthey’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Gulf Resources -906.23% -2.54% -2.50%
Johnson Matthey N/A N/A N/A

Earnings & Valuation

This table compares Gulf Resources and Johnson Matthey’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Gulf Resources $107.52 million 0.53 $7.95 million N/A N/A
Johnson Matthey $18.73 billion 0.41 $395.35 million $5.52 14.20

Johnson Matthey has higher revenue and earnings than Gulf Resources.

Summary

Johnson Matthey beats Gulf Resources on 8 of the 12 factors compared between the two stocks.

About Gulf Resources

Gulf Resources, Inc., through its subsidiaries, manufactures and trades in bromine, crude salt, chemical products, and natural gas in China. It provides bromine for use in brominated flame retardants, fumigants, water purification compounds, dyes, medicines, and disinfectants. The company also offers crude salt for use as a material in alkali and chlorine alkali production; and 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. The company's chemical products include hydroxyl guar gum, demulsified agent, corrosion inhibitor, bactericide, iron ion stabilizer, clay stabilizing agent, solid lubricants, polyether lubricant, bromopropane, chlorantraniliprole, remaining agent, enhanced mild paper expansion agent, chelant, tetramethylbenzidine, trimethylolpropane, lactic acid trimethylolpropane material, and Di Bromo Aldehyde, as well as by products, such as Sodium Methoxide, Hydrobroic Acid, Sodium Bromide. Gulf Resources, Inc. is based in Shouguang, the People's Republic of China.

About Johnson Matthey

Johnson Matthey is a global leader in science that enables a cleaner and healthier world. With over 200 years of sustained commitment to innovation and technological breakthroughs, they improve the function, performance and safety of their customers’ products. Their science has a global impact in areas such as low emission transport, pharmaceuticals, chemical processing and making the most efficient use of the planet’s natural resources. Today more than 13,000 Johnson Matthey professionals collaborate with their network of customers and partners to make a real difference to the world around us.

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