Gulf Resources (NASDAQ:GURE – Get Free Report) and Sensient Technologies (NYSE:SXT – Get Free Report) are both materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, institutional ownership, earnings, risk, valuation, analyst recommendations and dividends.
Valuation and Earnings
This table compares Gulf Resources and Sensient Technologies”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Gulf Resources | $25.42 million | 0.20 | -$43.92 million | ($29.52) | -0.10 |
| Sensient Technologies | $1.61 billion | 3.50 | $134.49 million | $3.71 | 35.75 |
Sensient Technologies has higher revenue and earnings than Gulf Resources. Gulf Resources is trading at a lower price-to-earnings ratio than Sensient Technologies, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current ratings and recommmendations for Gulf Resources and Sensient Technologies, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gulf Resources | 1 | 0 | 0 | 0 | 1.00 |
| Sensient Technologies | 0 | 2 | 3 | 0 | 2.60 |
Sensient Technologies has a consensus target price of $140.67, suggesting a potential upside of 6.07%. Given Sensient Technologies’ stronger consensus rating and higher probable upside, analysts plainly believe Sensient Technologies is more favorable than Gulf Resources.
Volatility & Risk
Gulf Resources has a beta of -0.02, meaning that its stock price is 102% less volatile than the S&P 500. Comparatively, Sensient Technologies has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500.
Profitability
This table compares Gulf Resources and Sensient Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Gulf Resources | -134.41% | -8.95% | -7.40% |
| Sensient Technologies | 9.27% | 13.77% | 7.33% |
Institutional & Insider Ownership
3.3% of Gulf Resources shares are owned by institutional investors. Comparatively, 90.9% of Sensient Technologies shares are owned by institutional investors. 7.7% of Gulf Resources shares are owned by company insiders. Comparatively, 1.3% of Sensient Technologies shares are owned 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
Sensient Technologies beats Gulf Resources on 13 of the 14 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 Sensient Technologies
Sensient Technologies Corporation, together with its subsidiaries, develops, manufactures, and markets colors, flavors, and other specialty ingredients in North America, Europe, Asia, Australia, South America, and Africa. The company offers flavor-delivery systems, and compounded and blended products; ingredient products, such as essential oils, natural and synthetic flavors, and natural extracts; and chili powder, paprika, and chili pepper, as well as dehydrated vegetables comprising parsley, celery, and spinach to the food, beverage, and personal care industries. It also provides natural and synthetic color systems for use in foods, beverages, pharmaceuticals, and nutraceuticals; colors and other ingredients for personal care, such as active ingredients, solubilizers, and surface treated pigments; pharmaceutical and nutraceutical excipients, including colors, flavors, coatings, and nutraceutical ingredients; and technical colors for industrial applications under the Sensient Food Colors, Sensient Pharmaceutical Coating Systems, Sensient Cosmetic Technologies, and Sensient Specialty Markets trade names. Sensient Technologies Corporation was incorporated in 1882 and is headquartered in Milwaukee, Wisconsin.
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