Geltech Solutions (OTCMKTS:GLTC) and Tronox (NYSE:TROX) Critical Review

Tronox (NYSE:TROX) and Geltech Solutions (OTCMKTS:GLTC) are both basic materials companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, earnings, dividends and institutional ownership.

Institutional & Insider Ownership

73.4% of Tronox shares are held by institutional investors. 1.7% of Tronox shares are held by insiders. Comparatively, 61.8% of Geltech Solutions shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Profitability

This table compares Tronox and Geltech Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Tronox	-11.39%	-8.10%	-2.23%
Geltech Solutions	N/A	N/A	N/A

Earnings & Valuation

This table compares Tronox and Geltech Solutions”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tronox	$3.07 billion	0.26	-$48.00 million	($2.05)	-2.49
Geltech Solutions	N/A	N/A	N/A	N/A	N/A

Geltech Solutions has lower revenue, but higher earnings than Tronox.

Analyst Recommendations

This is a summary of current recommendations for Tronox and Geltech Solutions, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tronox	3	3	5	0	2.18
Geltech Solutions	0	0	0	0	0.00

Tronox currently has a consensus price target of $5.18, suggesting a potential upside of 1.67%. Given Tronox’s stronger consensus rating and higher probable upside, research analysts clearly believe Tronox is more favorable than Geltech Solutions.

Summary

Tronox beats Geltech Solutions on 5 of the 9 factors compared between the two stocks.

About Tronox

Tronox Holdings plc operates as a vertically integrated manufacturer of TiO2 pigment in North America, South and Central America, Europe, the Middle East, Africa, and the Asia Pacific. The company operates titanium-bearing mineral sand mines; and engages in beneficiation and smelting operations. It offers TiO2 pigment; ultrafine specialty TiO2; zircon; feedstock; pig iron; monazite; titanium tetrachloride; and other products. The company’s products are used for the manufacture of paints, coatings, plastics, and paper, as well as various other applications. Tronox Holdings plc is based in Stamford, Connecticut.

About Geltech Solutions

GelTech Solutions, Inc. is a product innovation company, which specializes in environmentally-friendly chemicals and products that reduce costs associated with fighting fire, protecting assets, water retention and improving ROI for its customers. Its product lines include chemicals and equipment designed for use in wildland and municipal fire management, as well as industrial, agriculture, commercial, and personal home applications. Its products include: FireIce, is a water soluble fire retardant used to protect structures, personal property and forest wildfires; Soil2O Dust Control is effective at controlling airborne particulate matter while substantially reducing water usage on traffic areas; and Soil2O Soil Cap, a product which is effective at controlling dust and erosion of non-traffic and storage areas. The company was founded by Michael Cordani, Joseph Ingarra and Peter Cordani on July 19, 2006 and is headquartered in Jupiter, FL.