Gulf Resources (NASDAQ:GURE – Get Free Report) and ICL Group (NYSE:ICL – Get Free Report) are both materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, valuation, analyst recommendations, profitability, earnings, dividends and institutional ownership.
Risk & Volatility
Gulf Resources has a beta of -0.02, suggesting that its stock price is 102% less volatile than the S&P 500. Comparatively, ICL Group has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500.
Profitability
This table compares Gulf Resources and ICL Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Gulf Resources | -134.41% | -8.95% | -7.40% |
| ICL Group | 3.95% | 8.40% | 4.19% |
Valuation & Earnings
This table compares Gulf Resources and ICL Group”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Gulf Resources | $25.42 million | 0.22 | -$43.92 million | ($29.52) | -0.11 |
| ICL Group | $7.15 billion | 0.89 | $226.00 million | $0.24 | 20.48 |
ICL Group has higher revenue and earnings than Gulf Resources. Gulf Resources is trading at a lower price-to-earnings ratio than ICL Group, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of current ratings for Gulf Resources and ICL Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gulf Resources | 1 | 0 | 0 | 0 | 1.00 |
| ICL Group | 0 | 2 | 0 | 0 | 2.00 |
ICL Group has a consensus target price of $6.00, suggesting a potential upside of 22.08%. Given ICL Group’s stronger consensus rating and higher possible upside, analysts clearly believe ICL Group is more favorable than Gulf Resources.
Institutional and Insider Ownership
3.3% of Gulf Resources shares are held by institutional investors. Comparatively, 13.4% of ICL Group shares are held by institutional investors. 7.7% of Gulf Resources shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Summary
ICL Group beats Gulf Resources on 12 of the 13 factors compared between the two stocks.
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.
About ICL Group
ICL Group Ltd, together with its subsidiaries, operates as a specialty minerals and chemicals company worldwide. It operates in four segments: Industrial Products, Potash, Phosphate Solutions, and Growing Solutions. The Industrial Products segment produces bromine out of a solution that is a by-product of the potash production process, as well as bromine-based compounds; produces various grades of potash, salt, magnesium chloride, and magnesia products; and produces and markets phosphorous-based flame retardants and other phosphorus-based products. The Potash segment extracts potash from the Dead Sea; mines and produces potash and salt; produces polysulphate; produces, markets, and sells magnesium and magnesium alloys, as well as related by-products, including chlorine and sylvinite; and sells salt. The Phosphate Solutions segment uses phosphate commodity products to produce specialty products; produces and markets phosphate-based fertilizers, as well as sulphuric acid, green phosphoric acid, and phosphate fertilizers; and manufactures thermal phosphoric acid for various industrial end markets, such as oral care, cleaning products, paints and coatings, water treatment, asphalt modification, construction, and metal treatment. It also develops and produces functional food ingredients and phosphate additives for use in the processed meat, poultry, seafood, dairy, beverage, and baked goods markets; and produces milk and whey proteins for the food ingredients industry. The Growing Solutions segment develops, manufactures, markets, and sells fertilizers based primarily on nitrogen, potash, and phosphate, including water soluble specialty, liquid, soluble, and controlled-release fertilizers. It sells its products through marketing companies, agents, and distributors. The company was formerly known as Israel Chemicals Ltd. and changed its name to ICL Group Ltd in May 2020. The company was founded in 1968 and is headquartered in Tel Aviv, Israel.
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