Olin (NYSE:OLN) & China Carbon Graphite Group (OTCMKTS:CHGI) Financial Review

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

Volatility & Risk

Olin has a beta of 1.21, meaning that its stock price is 21% more volatile than the S&P 500. Comparatively, China Carbon Graphite Group has a beta of -1.43, meaning that its stock price is 243% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Olin	-1.89%	-4.68%	-1.18%
China Carbon Graphite Group	N/A	N/A	N/A

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Olin and China Carbon Graphite Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Olin	2	10	3	1	2.19
China Carbon Graphite Group	0	0	0	0	0.00

Olin currently has a consensus target price of $27.92, indicating a potential downside of 1.68%. Given China Carbon Graphite Group’s higher possible upside, analysts plainly believe China Carbon Graphite Group is more favorable than Olin.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Olin	$6.78 billion	0.48	-$100.50 million	($1.12)	-25.36
China Carbon Graphite Group	N/A	N/A	N/A	N/A	N/A

China Carbon Graphite Group has lower revenue, but higher earnings than Olin.

Institutional and Insider Ownership

88.7% of Olin shares are held by institutional investors. 1.6% of Olin 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 endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Olin beats China Carbon Graphite Group on 6 of the 11 factors compared between the two stocks.

About Olin

Olin Corporation manufactures and distributes chemical products in the United States, Europe, Asia Pacific, Latin America, and Canada. It operates through three segments: Chlor Alkali Products and Vinyls; Epoxy; and Winchester. The Chlor Alkali Products and Vinyls segment offers chlorine and caustic soda, ethylene dichloride and vinyl chloride monomers, methyl chloride, methylene chloride, chloroform, carbon tetrachloride, perchloroethylene, hydrochloric acid, hydrogen, bleach products, potassium hydroxide, and chlorinated organics intermediates and solvents. The Epoxy segment provides Allylics, such as allyl chloride, epichlorohydrin, and glycerin; aromatics, including acetone, bisphenol, cumene, and phenol; liquid and solid epoxy resins; and converted epoxy resins and additives. The Winchester segment offers sporting ammunition products, including shotshells, small caliber centerfire, and rimfire ammunition products for hunters and recreational shooters, and law enforcement agencies; small caliber military ammunition products for use in infantry and mounted weapons; and industrial products comprising gauge loads and powder-actuated tool loads for maintenance applications in power and concrete industries, and powder-actuated tools in construction industry. The company markets its products through its sales force, as well as directly to various industrial customers, mass merchants, retailers, wholesalers, gun clubs, other distributors, and the U.S. Government and its prime contractors. Olin Corporation was incorporated in 1892 and is based in Clayton, Missouri.

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.