Critical Survey: TOR Minerals International (OTCMKTS:TORM) versus NL Industries (OTCMKTS:NL)

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

Analyst Recommendations

This is a breakdown of recent ratings for TOR Minerals International and NL Industries, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
TOR Minerals International 0 0 0 0 N/A
NL Industries 0 0 0 0 N/A

Risk and Volatility

TOR Minerals International has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500. Comparatively, NL Industries has a beta of 2.69, meaning that its stock price is 169% more volatile than the S&P 500.

Earnings and Valuation

This table compares TOR Minerals International and NL Industries’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
TOR Minerals International $39.43 million 0.16 -$850,000.00 N/A N/A
NL Industries $118.20 million 1.66 -$41.02 million N/A N/A

TOR Minerals International has higher earnings, but lower revenue than NL Industries.

Profitability

This table compares TOR Minerals International and NL Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
TOR Minerals International -5.97% -8.43% -6.54%
NL Industries 6.95% 7.63% 4.25%

Insider & Institutional Ownership

8.7% of NL Industries shares are held by institutional investors. 42.1% of TOR Minerals International shares are held by company insiders. Comparatively, 0.1% of NL Industries shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

NL Industries beats TOR Minerals International on 7 of the 9 factors compared between the two stocks.

About TOR Minerals International

TOR Minerals International, Inc. is a manufacturer and seller of mineral products for use as pigments and extenders, primarily in the manufacture of paints, industrial coatings plastics, and solid surface applications. The Company’s specialty mineral products, which include flame retardant and smoke suppressant fillers, engineered fillers, and titanium dioxide (TiO2)-color hybrid pigments, are designed for use in plastics, coatings, paints and catalysts applications, as well as a range of other industrial applications. The Company and its subsidiaries operate in the business of pigment manufacturing and related products in three geographic segments, namely, United States, European and Asian. Its manufacturing plant in the United States is located in Corpus Christi, Texas. HITOX, BARTEX, HALTEX, OPTILOAD and TIOPREM are the products produced at the manufacturing plant. Premium Alumina Trihydrate (ATH) and Boehmite (AMH) products are produced at the Company’s European operation.

About NL Industries

NL Industries, Inc., through its subsidiary CompX International Inc., operates in the component products industry in the United States and internationally. The company manufactures and sells mechanical and electronic cabinet locks, and other locking mechanisms, including disc tumbler locks, pin tumbler locking mechanisms, and CompX eLock and StealthLock electronic locks for use in various applications, such as ignition systems, mailboxes, file cabinets, desk drawers, tool storage cabinets, vending and cash containment machines, medical cabinetry, electronic circuit panels, storage compartments, and gas station security. It also offers original equipment and aftermarket stainless steel exhaust headers, exhaust pipes, mufflers, and other exhaust components; gauges, such as GPS speedometers and tachometers; mechanical and electronic controls and throttles; wake enhancement devices, trim tabs, steering wheels and other billet aluminum accessories; and dash panels, LED indicators, wire harnesses, and other accessories primarily for performance and ski/wakeboard boats. In addition, it offers insurance brokerage and risk management services. NL Industries, Inc. sells its component products directly to original equipment manufacturers, as well as through distributors. The company was founded in 1891 and is based in Dallas, Texas. NL Industries, Inc. is a subsidiary of Valhi, Inc.

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