Reviewing Northern Technologies International (NTIC) and Its Competitors

Northern Technologies International (NASDAQ:NTIC) is one of 295 publicly-traded companies in the “Chemicals” industry, but how does it compare to its rivals? We will compare Northern Technologies International to related businesses based on the strength of its institutional ownership, analyst recommendations, risk, dividends, profitability, valuation and earnings.

Institutional and Insider Ownership

32.9% of Northern Technologies International shares are owned by institutional investors. Comparatively, 48.0% of shares of all “Chemicals” companies are owned by institutional investors. 24.9% of Northern Technologies International shares are owned by insiders. Comparatively, 13.9% of shares of all “Chemicals” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Northern Technologies International and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Northern Technologies International	-1.26%	-0.45%	-0.33%
Northern Technologies International Competitors	-59.13%	-0.46%	-1.40%

Valuation and Earnings

This table compares Northern Technologies International and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Northern Technologies International	$84.24 million	$20,000.00	-62.08
Northern Technologies International Competitors	$6.41 billion	$230.87 million	9.87

Northern Technologies International’s rivals have higher revenue and earnings than Northern Technologies International. Northern Technologies International is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a summary of current recommendations and price targets for Northern Technologies International and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Northern Technologies International	1	1	0	0	1.50
Northern Technologies International Competitors	3258	12227	14147	519	2.40

As a group, “Chemicals” companies have a potential upside of 7.51%. Given Northern Technologies International’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Northern Technologies International has less favorable growth aspects than its rivals.

Volatility & Risk

Northern Technologies International has a beta of 0.15, meaning that its share price is 85% less volatile than the S&P 500. Comparatively, Northern Technologies International’s rivals have a beta of 0.93, meaning that their average share price is 7% less volatile than the S&P 500.

Summary

Northern Technologies International rivals beat Northern Technologies International on 8 of the 12 factors compared.

About Northern Technologies International

Northern Technologies International Corp. (NASDAQ: NTIC) develops and markets corrosion prevention and environmentally friendly materials. The company’s principal business operates under the ZERUST brand, which provides corrosion-inhibiting products and services designed to protect metal components and equipment during manufacturing, shipping, storage and use. ZERUST offerings include corrosion-inhibiting films, bags, papers, emitters, coatings, fluids and other products, as well as technical consulting and corrosion-management services.