Gulf Resources (NASDAQ:GURE – Get Free Report) and Air Products and Chemicals (NYSE:APD – Get Free Report) are both basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, profitability, earnings, analyst recommendations and dividends.
Risk & Volatility
Gulf Resources has a beta of 0.38, indicating that its stock price is 62% less volatile than the S&P 500. Comparatively, Air Products and Chemicals has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings and price targets for Gulf Resources and Air Products and Chemicals, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gulf Resources | 1 | 0 | 0 | 0 | 1.00 |
| Air Products and Chemicals | 2 | 6 | 7 | 1 | 2.44 |
Earnings & Valuation
This table compares Gulf Resources and Air Products and Chemicals”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Gulf Resources | $7.66 million | 0.68 | -$58.94 million | ($48.05) | -0.08 |
| Air Products and Chemicals | $12.04 billion | 4.53 | -$394.50 million | ($1.78) | -137.49 |
Gulf Resources has higher earnings, but lower revenue than Air Products and Chemicals. Air Products and Chemicals is trading at a lower price-to-earnings ratio than Gulf Resources, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
3.3% of Gulf Resources shares are held by institutional investors. Comparatively, 81.7% of Air Products and Chemicals shares are held by institutional investors. 3.2% of Gulf Resources shares are held by company insiders. Comparatively, 1.9% of Air Products and Chemicals shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares Gulf Resources and Air Products and Chemicals’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Gulf Resources | -286.77% | -20.62% | -17.50% |
| Air Products and Chemicals | -3.28% | 15.18% | 6.64% |
Summary
Air Products and Chemicals beats Gulf Resources on 12 of the 15 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 Air Products and Chemicals
Air Products and Chemicals, Inc. provides atmospheric gases, process and specialty gases, equipment, and related services in the Americas, Asia, Europe, the Middle East, India, and internationally. The company produces atmospheric gases, including oxygen, nitrogen, and argon; process gases, such as hydrogen, helium, carbon dioxide, carbon monoxide, and syngas; and specialty gases for customers in various industries, including refining, chemical, manufacturing, electronics, energy production, medical, food, and metals. It also designs and manufactures equipment for air separation, hydrocarbon recovery and purification, natural gas liquefaction, and liquid helium and liquid hydrogen transport and storage. The company was founded in 1940 and is headquartered in Allentown, Pennsylvania.
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