Covestro (OTCMKTS:COVTY – Get Free Report) and Gulf Resources (NASDAQ:GURE – Get Free Report) are both materials companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, valuation, profitability, institutional ownership, dividends and analyst recommendations.
Insider and Institutional Ownership
3.3% of Gulf Resources shares are owned by institutional investors. 3.2% of Gulf Resources 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.
Earnings and Valuation
This table compares Covestro and Gulf Resources”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Covestro | $14.64 billion | 0.96 | -$728.62 million | ($2.53) | -13.40 |
| Gulf Resources | $25.42 million | 0.22 | -$43.92 million | ($30.76) | -0.10 |
Gulf Resources has lower revenue, but higher earnings than Covestro. Covestro is trading at a lower price-to-earnings ratio than Gulf Resources, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Covestro has a beta of 0.91, indicating that its stock price is 9% less volatile than the S&P 500. Comparatively, Gulf Resources has a beta of -0.06, indicating that its stock price is 106% less volatile than the S&P 500.
Profitability
This table compares Covestro and Gulf Resources’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Covestro | -6.97% | -13.22% | -6.31% |
| Gulf Resources | -165.06% | -10.03% | -8.39% |
Analyst Ratings
This is a summary of recent ratings and recommmendations for Covestro and Gulf Resources, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Covestro | 0 | 1 | 0 | 0 | 2.00 |
| Gulf Resources | 1 | 0 | 0 | 0 | 1.00 |
Summary
Covestro beats Gulf Resources on 7 of the 12 factors compared between the two stocks.
About Covestro
Covestro AG supplies high-tech polymer materials and application solutions. It operates in two segments, Performance Materials, and Solutions & Specialties. The Performance Materials segment develops, produces, and supplies high-performance materials, such as polyurethanes and polycarbonates, and base chemicals, which include diphenylmethane diisocyanate (MDI), toluylene diisocyanate, long-chain polyols, and polycarbonate resins for use in furniture and wood processing, construction, automotive, and transportation industries, as well as roof structures, insulation for buildings and refrigerators, mattresses, car seats, and other applications. The Solutions & Specialties segment comprises a range of polymer products, including polycarbonates, precursors for coatings and adhesives, MDI specialties and polyols, thermoplastic polyurethanes, specialty films, and elastomers that are used in automotive and transportation, electrical, electronics and household appliances, construction, and healthcare industries, as well as composite resins for solar panel frames, laptops, floodlights, and electric vehicle batteries. The company markets its products through trading houses and distributors. It operates in Europe, the Middle East, Africa, Latin America, the United States, Canada, and the People's Republic of China. The company was founded in 1863 and is headquartered in Leverkusen, Germany.
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.
Receive News & Ratings for Covestro Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Covestro and related companies with MarketBeat.com's FREE daily email newsletter.
