Analyzing Northern Technologies International (NASDAQ:NTIC) & China Carbon Graphite Group (OTCMKTS:CHGI)

Northern Technologies International (NASDAQ:NTIC) and China Carbon Graphite Group (OTCMKTS:CHGI) are both basic materials companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, institutional ownership, valuation, profitability, dividends, earnings and analyst recommendations.

Valuation and Earnings

This table compares Northern Technologies International and China Carbon Graphite Group”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Northern Technologies International	$84.24 million	0.89	$20,000.00	($0.08)	-98.75
China Carbon Graphite Group	N/A	N/A	N/A	N/A	N/A

Northern Technologies International has higher revenue and earnings than China Carbon Graphite Group.

Analyst Ratings

This is a summary of current ratings and target prices for Northern Technologies International and China Carbon Graphite Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Northern Technologies International	2	0	0	0	1.00
China Carbon Graphite Group	0	0	0	0	0.00

Given China Carbon Graphite Group’s higher possible upside, analysts plainly believe China Carbon Graphite Group is more favorable than Northern Technologies International.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Northern Technologies International	-0.87%	0.05%	0.04%
China Carbon Graphite Group	N/A	N/A	N/A

Insider and Institutional Ownership

32.9% of Northern Technologies International shares are owned by institutional investors. 24.9% of Northern Technologies International 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 hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk and Volatility

Northern Technologies International has a beta of 0.19, meaning that its share price is 81% less volatile than the S&P 500. Comparatively, China Carbon Graphite Group has a beta of -1.4, meaning that its share price is 240% less volatile than the S&P 500.

Summary

Northern Technologies International beats China Carbon Graphite Group on 7 of the 9 factors compared between the two stocks.

About Northern Technologies International

Northern Technologies International Corporation develops and markets rust and corrosion inhibiting solutions in North America, South America, Europe, Asia, the Middle East and internationally. It offers rust and corrosion inhibiting products, such as plastic and paper packaging, liquids, coatings, rust removers, cleaners, diffusers, and engineered solutions designed for the oil and gas industry under the ZERUST brand. The company provides a portfolio of bio-based and certified compostable polymer resin compounds and finished products under the Natur-Tec brand. In addition, it offers on-site and technical consulting for rust and corrosion prevention issues. It sells its products and services to automotive, electronics, electrical, mechanical, military, retail consumer, and oil and gas markets through direct sales force, network of independent distributors, agents, manufacturer's sales representatives, and strategic partners. The company was founded in 1970 and is headquartered in Circle Pines, Minnesota.

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.