China Gengsheng Minerals (OTCMKTS:CHGS) and Amcor (NYSE:AMCR) are both basic materials companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, dividends, earnings, valuation, risk, analyst recommendations and institutional ownership.

Profitability

This table compares China Gengsheng Minerals and Amcor’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
China Gengsheng Minerals N/A N/A N/A
Amcor 4.01% 14.91% 4.89%

Insider & Institutional Ownership

30.4% of Amcor shares are owned by institutional investors. 56.8% of China Gengsheng Minerals shares are owned by insiders. Comparatively, 0.2% of Amcor shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and target prices for China Gengsheng Minerals and Amcor, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
China Gengsheng Minerals 0 0 0 0 N/A
Amcor 1 2 4 0 2.43

Amcor has a consensus price target of $11.35, indicating a potential upside of 47.21%. Given Amcor’s higher possible upside, analysts clearly believe Amcor is more favorable than China Gengsheng Minerals.

Volatility and Risk

China Gengsheng Minerals has a beta of -23.38, suggesting that its stock price is 2,438% less volatile than the S&P 500. Comparatively, Amcor has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500.

Valuation and Earnings

This table compares China Gengsheng Minerals and Amcor’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
China Gengsheng Minerals N/A N/A N/A N/A N/A
Amcor $9.46 billion 1.31 $430.20 million $0.61 12.64

Amcor has higher revenue and earnings than China Gengsheng Minerals.

Summary

Amcor beats China Gengsheng Minerals on 8 of the 9 factors compared between the two stocks.

China Gengsheng Minerals Company Profile

China GengSheng Minerals, Inc., through its subsidiaries, develops, manufactures, and sells a range of mineral-based, heat-resistant industrial material products. It operates in four segments: Refractories, Industrial Ceramics, Fracture Proppants, and Fine Precision Abrasives. The Refractories segment offers castable, coating, and dry mix materials; low-cement and non-cement castables; and pre-cast roofs that are used as linings and key components in various industrial furnaces, such as steel production furnaces, ladles, vessels, and other high-temperature processing machines that operate at high temperatures. The Industrial Ceramics segment provides abrasive balls and tiles, valves, electronic ceramics, and structural ceramics that are used as components for various end products, such as fuses, vacuum interrupters, electrical components, mud slurry pumps, and high-pressure pumps used in the electric power, electronic component, industrial pump, and metallurgy industries. The Fracture Proppants segment offers ball-like pellets that are used to reach pockets of oil and natural gas deposits trapped in the fractures under the ground. The Fine Precision Abrasives segment offers abrasives, which are primarily used for the surface-polishing and slicing of precision instruments, such as solar panels, as well as in a range of areas, including machinery manufacturing, electronics, optical glass, architecture, industry development, semiconductor, silicon chip, plastic, and lens. China GengSheng Minerals, Inc. sells its products to customers in the iron, steel, oil, glass, cement, aluminum, chemical, and solar industries in China, and other parts of Asia and Europe. The company was formerly known as China Minerals Technologies, Inc. and changed its name to China GengSheng Minerals, Inc. in July 2007. China GengSheng Minerals, Inc. is based in Gongyi, the People's Republic of China.

Amcor Company Profile

Amcor plc develops, manufactures, and sells various packaging products for food, beverage, pharmaceutical, medical, home and personal care, and other products worldwide. It provides flexible packaging products, specialty cartons, plastic bottles and jars, and capsules and closures. The company is based in Bristol, the United Kingdom.

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