Contrasting Gulf Resources (NASDAQ:GURE) and TOR Minerals International (OTCMKTS:TORM)

Gulf Resources (NASDAQ:GURE) and TOR Minerals International (OTCMKTS:TORM) are both small-cap basic materials companies, but which is the superior investment? We will contrast the two companies based on the strength of their valuation, dividends, profitability, risk, earnings, analyst recommendations and institutional ownership.

Profitability

This table compares Gulf Resources and TOR Minerals International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Gulf Resources	-286.77%	-20.62%	-17.50%
TOR Minerals International	-5.31%	-7.21%	-5.92%

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Gulf Resources and TOR Minerals International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gulf Resources	1	0	0	0	1.00
TOR Minerals International	0	0	0	0	0.00

Institutional and Insider Ownership

3.3% of Gulf Resources shares are held by institutional investors. 3.2% of Gulf Resources shares are held by company insiders. Comparatively, 42.1% of TOR Minerals International shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Gulf Resources and TOR Minerals International”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gulf Resources	$7.66 million	0.83	-$58.94 million	($48.05)	-0.09
TOR Minerals International	$22.41 million	0.16	-$2.61 million	($0.33)	-3.14

TOR Minerals International has higher revenue and earnings than Gulf Resources. TOR Minerals International is trading at a lower price-to-earnings ratio than Gulf Resources, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Gulf Resources has a beta of 0.36, suggesting that its stock price is 64% less volatile than the S&P 500. Comparatively, TOR Minerals International has a beta of -0.11, suggesting that its stock price is 111% less volatile than the S&P 500.

Summary

TOR Minerals International beats Gulf Resources on 7 of the 12 factors compared between the two stocks.

About Gulf Resources

Gulf Resources, Inc., through its subsidiaries, manufactures and trades bromine and crude salt, chemical products, and natural gas in the People’s Republic of China. The company operates through four segments: Bromine, Crude salt, Chemical products, and Natural gas segments. It also provides bromine for use in bromine compounds, intermediates in organic synthesis, brominated flame retardants, fumigants, water purification compounds, dyes, medicines, and disinfectants. In addition, the company offers crude salt for use as a material in alkali and chlorine alkali production 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, as well as materials that are used for human and animal antibiotics. The company is based in Shouguang, the People’s Republic of China.

About TOR Minerals International

TOR Minerals International, Inc. produces and sells specialty mineral products in the United States, Europe, and Asia. The company offers alumina trihydrate and boehmite halogen-free flame retardant and smoke suppressant fillers for plastics, rubber, and specialty applications; and beige and gray colored titanium dioxide (TiO2) pigments for use in paints, coatings, plastics, paper, and various other products. It also provides white TiO2, a pigment to add whiteness and opacity to paints and coatings, plastics, and other materials; and engineered fillers for use in plastics, paints, coatings, catalysts, and industrial products. The company was founded in 1973 and is headquartered in Corpus Christi, Texas.