Head-To-Head Contrast: Kiwa Bio-Tech Products Group (OTCMKTS:KWBT) versus Valhi (NYSE:VHI)

Valhi (NYSE:VHI) and Kiwa Bio-Tech Products Group (OTCMKTS:KWBT) are both basic materials companies, but which is the better business? We will compare the two companies based on the strength of their valuation, institutional ownership, analyst recommendations, risk, profitability, dividends and earnings.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Valhi and Kiwa Bio-Tech Products Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Valhi	2	0	0	0	1.00
Kiwa Bio-Tech Products Group	0	0	0	0	0.00

Valhi presently has a consensus price target of $12.00, indicating a potential downside of 23.49%. Given Valhi’s stronger consensus rating and higher probable upside, research analysts plainly believe Valhi is more favorable than Kiwa Bio-Tech Products Group.

Insider & Institutional Ownership

3.8% of Valhi shares are owned by institutional investors. 0.2% of Valhi shares are owned by insiders. Comparatively, 1.3% of Kiwa Bio-Tech Products Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Valhi and Kiwa Bio-Tech Products Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Valhi	0.89%	2.22%	1.13%
Kiwa Bio-Tech Products Group	N/A	N/A	N/A

Earnings & Valuation

This table compares Valhi and Kiwa Bio-Tech Products Group”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Valhi	$2.06 billion	0.22	$108.00 million	$0.64	24.51
Kiwa Bio-Tech Products Group	N/A	N/A	N/A	N/A	N/A

Valhi has higher revenue and earnings than Kiwa Bio-Tech Products Group.

Summary

Valhi beats Kiwa Bio-Tech Products Group on 7 of the 8 factors compared between the two stocks.

About Valhi

Valhi, Inc. engages in the chemicals, component products, and real estate management and development businesses in Europe, North America, the Asia Pacific, and internationally. The company’s Chemicals segment produces and markets titanium dioxide pigments (TiO2), which are white inorganic pigments used in various applications by paint, plastics, decorative laminate, and paper manufacturers. It offers TiO2 under the KRONOS name through agents and distributors. The company’s Component Products segment manufactures mechanical and electrical cabinet locks, and other locking mechanisms for use in ignition systems, mailboxes, file cabinets, desk drawers, tool storage cabinets, vending and cash containment machines, integrated inventory and access control secured narcotics boxes, medical cabinetry security, electronic circuit panels, storage compartments, and gas station security applications. It also provides stainless steel exhaust components, gauges, throttle controls, wake enhancement systems, trim tabs, and related hardware and accessories primarily for performance and ski/wakeboard boats. The company’s Real Estate Management and Development segment offers utility services to industrial and municipal customers; owns real properties; and develops land holdings for commercial, industrial, and residential purposes. It also holds marketable securities and other investments. The company was incorporated in 1932 and is based in Dallas, Texas. Valhi, Inc. is a subsidiary of Dixie Rice Agricultural L.L.C.

About Kiwa Bio-Tech Products Group

Kiwa Bio-Tech Products Group Corporation, together with its subsidiaries, develops, manufactures, markets, and distributes bio-technological products for the agricultural market primarily in the People's Republic of China. It offers bacillus species and/or photosynthetic bacteria based biological organic, compound microbial, bio-water soluble, and microbial inoculum fertilizers. The company has a strategic cooperation agreements with the Beijing Zhongpin Agricultural Science and Technology Development Center; China Academy of Agricultural Science's Institute of Agricultural Resources & Regional Planning; and Institute of Agricultural Economy & Development, as well as Kiwa Bio-Tech (Yangling) Co. Ltd. Kiwa Bio-Tech Products Group Corporation was founded in 2002 and is headquartered in Yangling, China.