Critical Contrast: Methanex (NASDAQ:MEOH) vs. China Carbon Graphite Group (OTCMKTS:CHGI)

Methanex (NASDAQ:MEOH) and China Carbon Graphite Group (OTCMKTS:CHGI) are both basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, profitability, risk, analyst recommendations, institutional ownership, dividends and earnings.

Volatility and Risk

Methanex has a beta of 0.68, indicating that its stock price is 32% less volatile than the S&P 500. Comparatively, China Carbon Graphite Group has a beta of -1.58, indicating that its stock price is 258% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Methanex and China Carbon Graphite Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Methanex	0	5	6	1	2.67
China Carbon Graphite Group	0	0	0	0	0.00

Methanex presently has a consensus target price of $48.00, indicating a potential downside of 2.00%. Given China Carbon Graphite Group’s higher probable upside, analysts plainly believe China Carbon Graphite Group is more favorable than Methanex.

Earnings & Valuation

This table compares Methanex and China Carbon Graphite Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Methanex	$3.72 billion	1.02	$163.99 million	$2.95	16.60
China Carbon Graphite Group	N/A	N/A	N/A	N/A	N/A

Methanex has higher revenue and earnings than China Carbon Graphite Group.

Institutional and Insider Ownership

73.5% of Methanex shares are owned by institutional investors. 1.0% of Methanex shares are owned by insiders. Comparatively, 5.5% of China Carbon Graphite Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Methanex	5.97%	9.07%	3.41%
China Carbon Graphite Group	N/A	N/A	N/A

Summary

Methanex beats China Carbon Graphite Group on 9 of the 11 factors compared between the two stocks.

About Methanex

Methanex Corporation produces and supplies methanol in China, Europe, the United States, South America, South Korea, Canada, and Asia. The company also purchases methanol produced by others under methanol offtake contracts and on the spot market. In addition, it owns and leases storage and terminal facilities. The company owns and manages a fleet of approximately 30 ocean-going vessels. It serves chemical and petrochemical producers. Methanex Corporation was incorporated in 1968 and is headquartered in Vancouver, Canada.

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.