Contrasting Huntsman (NYSE:HUN) and China Carbon Graphite Group (OTCMKTS:CHGI)

China Carbon Graphite Group (OTCMKTS:CHGI) and Huntsman (NYSE:HUN) are both small-cap basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, dividends, valuation, earnings, profitability and analyst recommendations.

Earnings & Valuation

This table compares China Carbon Graphite Group and Huntsman”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
China Carbon Graphite Group	N/A	N/A	N/A	N/A	N/A
Huntsman	$6.04 billion	0.30	-$189.00 million	($1.90)	-5.58

China Carbon Graphite Group has higher earnings, but lower revenue than Huntsman.

Risk and Volatility

China Carbon Graphite Group has a beta of -2.01, meaning that its share price is 301% less volatile than the S&P 500. Comparatively, Huntsman has a beta of 0.68, meaning that its share price is 32% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings for China Carbon Graphite Group and Huntsman, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
China Carbon Graphite Group	0	0	0	0	0.00
Huntsman	4	7	2	0	1.85

Huntsman has a consensus price target of $10.18, suggesting a potential downside of 3.90%. Given Huntsman’s stronger consensus rating and higher probable upside, analysts plainly believe Huntsman is more favorable than China Carbon Graphite Group.

Insider and Institutional Ownership

84.8% of Huntsman shares are held by institutional investors. 5.5% of China Carbon Graphite Group shares are held by insiders. Comparatively, 6.2% of Huntsman shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

This table compares China Carbon Graphite Group and Huntsman’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
China Carbon Graphite Group	N/A	N/A	N/A
Huntsman	-5.69%	-3.26%	-1.41%

Summary

Huntsman beats China Carbon Graphite Group on 7 of the 10 factors compared between the two stocks.

About China Carbon Graphite Group

China Carbon Graphite Group, Inc., together with its subsidiaries, engages in the research and development, manufacture, rework, and sale of graphene, graphene oxide, carbon graphite felt, and graphite bipolar plates in the People's Republic of China. Its graphene oxide is used as a conductive agent in lithium ion batteries, super capacitors, rubber and plastic additives, conductive inks, special coatings, transparent conductive thin films, and chips; and graphite bipolar plates are used in solar power storage. The company operates roycarbon.com, a business-to-business and business-to-consumers Internet portal for graphite related products. China Carbon Graphite Group, Inc. was founded in 1986 and is based in Diamond Bar, California.

About Huntsman

Huntsman Corporation manufactures and sells diversified organic chemical products worldwide. The company operates in three segments: Polyurethanes, Performance Products, and Advanced Materials. The Polyurethanes segment offers polyurethane chemicals, including methyl diphenyl diisocyanate, polyether and polyester polyols, and thermoplastic polyurethane; and aniline, benzene, nitrobenzene and other co-products. The Performance Products segment manufactures amines, such as polyetheramines, ethyleneamines, DGA Agent, JEFFCAT catalysts, and E-GRADE specialty amines and carbonates; and maleic anhydrides. The Advanced Materials segment offers epoxy, phenoxy, acrylic, polyurethane, and acrylonitrile-butadiene-based polymer formulations; and thermoset resins, curing and toughening agents, and carbon nanomaterials. The company provides pre-and post-sales technical service support to customers. Its products are used in a range of applications, including adhesives, aerospace, automotive, construction products, durable and non-durable consumer products, electronics, insulation, packaging, coatings and construction, power generation, and refining, as well as serves the elastomers, insulation, footwear, furniture, industrial, oil and gas, liquid natural gas transport, printed circuit boards, consumer, appliances, electrical power transmission and distribution, recreational sports equipment, and medical appliances markets. The company sells its products through a network of distributors and agents. Huntsman Corporation was founded in 1970 and is headquartered in The Woodlands, Texas.