Analyzing Cabot (NYSE:CBT) & China Carbon Graphite Group (OTCMKTS:CHGI)

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

Insider and Institutional Ownership

93.2% of Cabot shares are held by institutional investors. 3.1% of Cabot shares are held by insiders. Comparatively, 5.5% of China Carbon Graphite Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Cabot	7.97%	21.33%	9.48%
China Carbon Graphite Group	N/A	N/A	N/A

Risk and Volatility

Cabot has a beta of 0.82, suggesting that its stock price is 18% less volatile than the S&P 500. Comparatively, China Carbon Graphite Group has a beta of -1.4, suggesting that its stock price is 240% less volatile than the S&P 500.

Earnings & Valuation

This table compares Cabot 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
Cabot	$3.71 billion	1.22	$331.00 million	$5.29	16.58
China Carbon Graphite Group	N/A	N/A	N/A	N/A	N/A

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

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cabot	1	4	1	0	2.00
China Carbon Graphite Group	0	0	0	0	0.00

Cabot presently has a consensus target price of $80.25, indicating a potential downside of 8.50%. Given China Carbon Graphite Group’s higher probable upside, analysts plainly believe China Carbon Graphite Group is more favorable than Cabot.

Summary

Cabot beats China Carbon Graphite Group on 8 of the 10 factors compared between the two stocks.

About Cabot

Cabot Corporation operates as a specialty chemicals and performance materials company. The company operates through two segments, Reinforcement Materials and Performance Chemicals. It offers reinforcing carbons that are used in tires as a rubber reinforcing agent and performance additive, as well as in industrial products, such as hoses, belts, extruded profiles, and molded goods; and engineered elastomer composites solutions. The company also provides specialty carbons for use in inks, coatings, plastics, adhesives, toners, batteries, and displays; conductive additives and fumed alumina used in lead acid and lithium-ion batteries for electric vehicles; fumed silica used in adhesives, sealants, cosmetics, batteries, inks, toners, silicone elastomers, coatings, polishing slurries, and pharmaceuticals; and fumed alumina for use in various products, including inkjet media, lighting, coatings, cosmetics, and polishing slurries. In addition, it offers aerogel, a hydrophobic, silica-based particle to use in various thermal insulation and specialty chemical applications; masterbatch and conductive compound products that are used in automotive, industrial, packaging, infrastructure, agriculture, consumer products, and electronics industries; and inkjet colorants for inkjet printing applications. The company sells its products through distributors and sales representatives in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. Cabot Corporation was founded in 1882 and is headquartered in Boston, Massachusetts.

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.