Gulf Resources (NASDAQ:GURE) vs. TOR Minerals International (OTCMKTS:TORM) Critical Survey

TOR Minerals International (OTCMKTS:TORM) and Gulf Resources (NASDAQ:GURE) are both small-cap basic materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, profitability, valuation, risk and earnings.

Profitability

This table compares TOR Minerals International and Gulf Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
TOR Minerals International	-5.31%	-7.21%	-5.92%
Gulf Resources	-286.77%	-20.62%	-17.50%

Insider & Institutional Ownership

3.3% of Gulf Resources shares are held by institutional investors. 42.1% of TOR Minerals International shares are held by insiders. Comparatively, 3.2% of Gulf Resources shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

TOR Minerals International has a beta of -0.08, suggesting that its share price is 108% less volatile than the S&P 500. Comparatively, Gulf Resources has a beta of 0.38, suggesting that its share price is 62% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for TOR Minerals International and Gulf Resources, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
TOR Minerals International	0	0	0	0	0.00
Gulf Resources	1	0	0	0	1.00

Valuation and Earnings

This table compares TOR Minerals International and Gulf Resources”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
TOR Minerals International	$22.41 million	0.16	-$2.61 million	($0.33)	-3.15
Gulf Resources	$7.66 million	0.83	-$58.94 million	($48.05)	-0.10

TOR Minerals International has higher revenue and earnings than Gulf Resources. TOR Minerals International is trading at a lower price-to-earnings ratio than Gulf Resources, indicating that it is currently the more affordable of the two stocks.

Summary

TOR Minerals International beats Gulf Resources on 7 of the 12 factors compared between the two stocks.

About TOR Minerals International

TOR Minerals International, Inc. produces and sells specialty mineral products in the United States, Europe, and Asia. The company offers alumina trihydrate and boehmite halogen-free flame retardant and smoke suppressant fillers for plastics, rubber, and specialty applications; and beige and gray colored titanium dioxide (TiO2) pigments for use in paints, coatings, plastics, paper, and various other products. It also provides white TiO2, a pigment to add whiteness and opacity to paints and coatings, plastics, and other materials; and engineered fillers for use in plastics, paints, coatings, catalysts, and industrial products. The company was founded in 1973 and is headquartered in Corpus Christi, Texas.

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.