Critical Survey: Innospec (NASDAQ:IOSP) versus Tantech (NASDAQ:TANH)

Tantech (NASDAQ:TANH) and Innospec (NASDAQ:IOSP) are both basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, valuation, dividends, risk and profitability.

Volatility & Risk

Tantech has a beta of 0.33, suggesting that its stock price is 67% less volatile than the S&P 500. Comparatively, Innospec has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tantech	N/A	N/A	N/A
Innospec	1.08%	10.89%	7.70%

Earnings and Valuation

This table compares Tantech and Innospec”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tantech	$42.94 million	0.00	-$3.24 million	N/A	N/A
Innospec	$1.79 billion	1.21	$35.60 million	$0.78	111.69

Innospec has higher revenue and earnings than Tantech.

Institutional and Insider Ownership

6.0% of Tantech shares are held by institutional investors. Comparatively, 96.6% of Innospec shares are held by institutional investors. 3.8% of Tantech shares are held by company insiders. Comparatively, 1.3% of Innospec 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.

Analyst Recommendations

This is a breakdown of current recommendations for Tantech and Innospec, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tantech	0	0	0	0	0.00
Innospec	0	0	0	1	4.00

Summary

Innospec beats Tantech on 10 of the 11 factors compared between the two stocks.

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.

About Innospec

Innospec Inc. develops, manufactures, blends, markets, and supplies specialty chemicals in the United States, rest of North America, the United Kingdom, rest of Europe, and internationally. The company's Fuel Specialties segment offers a range of specialty chemical products that are used as additives in additives in diesel, jet, marine, fuel oil and other fuels. This segment's products are used in the operation of commercial trucking, marine and aviation engines, power station generators, heating oil, and other industrial machinery applications. Its Performance Chemicals segment provides technology-based solutions for its customers' processes or products that focuses on the personal care, home care, agrochemical, construction, mining, and other industrial markets. The company's Oilfield Services segment develops and markets chemical solutions for drilling, completion, fracturing, stimulation, and completion operations; and products for oil and gas production. It sells its products primarily to oil and gas exploration and production companies, oil refineries, fuel manufacturers and users, personal care and home care companies, formulators of agrochemical, and other chemical and industrial companies. The company was formerly known as Octel Corp. and changed its name to Innospec Inc. in January 2006. Innospec Inc. was founded in 1938 and is headquartered in Englewood, Colorado.