Methanex (NASDAQ:MEOH – Get Free Report) and China Carbon Graphite Group (OTCMKTS:CHGI – Get Free Report) are both basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, dividends, profitability, valuation and earnings.
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 |
Insider and Institutional Ownership
73.5% of Methanex shares are held by institutional investors. 1.0% of Methanex 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 large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Methanex | $3.72 billion | 1.01 | $163.99 million | $2.95 | 16.49 |
| 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.
Analyst Ratings
This is a breakdown of recent ratings and price targets for Methanex and China Carbon Graphite Group, as provided by MarketBeat.com.
| 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 currently has a consensus target price of $48.00, suggesting a potential downside of 1.34%. Given China Carbon Graphite Group’s higher probable upside, analysts plainly believe China Carbon Graphite Group is more favorable than Methanex.
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.
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.
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