Tantech (NASDAQ:TANH) and Gulf Resources (NASDAQ:GURE) Financial Contrast

Gulf Resources (NASDAQ:GURE) and Tantech (NASDAQ:TANH) are both small-cap basic materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their profitability, institutional ownership, risk, valuation, analyst recommendations, dividends and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Gulf Resources	N/A	N/A	N/A
Tantech	N/A	N/A	N/A

Earnings and Valuation

This table compares Gulf Resources and Tantech”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Gulf Resources	$7.66 million	0.74	-$58.94 million	($48.05)	-0.08
Tantech	$38.36 million	0.06	-$31.02 million	N/A	N/A

Tantech has higher revenue and earnings than Gulf Resources.

Institutional & Insider Ownership

3.3% of Gulf Resources shares are owned by institutional investors. Comparatively, 6.0% of Tantech shares are owned by institutional investors. 3.2% of Gulf Resources shares are owned by insiders. Comparatively, 3.8% of Tantech shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations for Gulf Resources and Tantech, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Gulf Resources	1	0	0	0	1.00
Tantech	1	0	0	0	1.00

Volatility and Risk

Gulf Resources has a beta of -0.13, indicating that its share price is 113% less volatile than the S&P 500. Comparatively, Tantech has a beta of 0.59, indicating that its share price is 41% less volatile than the S&P 500.

Summary

Tantech beats Gulf Resources on 5 of the 6 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 Tantech

Tantech Holdings Ltd, together with its subsidiaries, develops and manufactures bamboo-based charcoal products for industrial energy, household cooking, heating, purification, agricultural, and cleaning applications in the People's Republic of China and internationally. The company operates in three segments: Consumer Products, Electric Vehicles, and Biodegradable Packaging. It provides pressed and formed charcoal briquettes for use in grills, incense burners, and other applications under the Algold brand. The company also offers Charcoal Doctor branded products, such as air purifiers and humidifiers, automotive accessories for air purification, underfloor humidity control products, pillows and mattresses, wardrobe deodorizers, mouse pads and wrist mats, refrigerator deodorants, charcoal toilet cleaner disks, liquid charcoal cleaners, shoe insoles, and decorative charcoal gifts. In addition, it provides bamboo vinegar, a liquid byproduct for use in disinfectants, detergents, lotions, specialized soaps, toilet cleaners, and fertilizers, as well as in various agricultural applications; and trades in charcoal products. Further, the company develops and sells electric buses, electric logistics cars, and specialty electric vehicles, such as brushless cleaning cars, electric cleaning cars, special emergency vehicles, and funeral cars; and solar cells, lithium-ion batteries, auto parts, and electric control systems. It is also involved in the biodegradable packaging and supply chain businesses, as well as provides commercial factoring services. The company was founded in 1998 and is headquartered in Lishui, the People's Republic of China.