Hawkins (HWKN) versus Gulf Resources (GURE) Financial Analysis

Hawkins (NASDAQ:HWKN) and Gulf Resources (NASDAQ:GURE) are both small-cap basic materials companies, but which is the better investment? We will compare the two companies based on the strength of their risk, earnings, institutional ownership, dividends, analyst recommendations, valuation and profitability.

Dividends

Hawkins pays an annual dividend of $0.46 per share and has a dividend yield of 1.2%. Gulf Resources does not pay a dividend. Hawkins has raised its dividend for 14 consecutive years.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Hawkins and Gulf Resources, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hawkins 0 0 0 0 N/A
Gulf Resources 0 0 0 0 N/A

Insider and Institutional Ownership

58.2% of Hawkins shares are held by institutional investors. Comparatively, 7.0% of Gulf Resources shares are held by institutional investors. 3.8% of Hawkins shares are held by company insiders. Comparatively, 30.1% 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 company is poised for long-term growth.

Profitability

This table compares Hawkins and Gulf Resources’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hawkins -3.03% 10.22% 5.54%
Gulf Resources -906.23% -5.20% -5.12%

Risk and Volatility

Hawkins has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500. Comparatively, Gulf Resources has a beta of 0.99, suggesting that its stock price is 1% less volatile than the S&P 500.

Valuation and Earnings

This table compares Hawkins and Gulf Resources’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hawkins $504.17 million 0.80 -$9.17 million N/A N/A
Gulf Resources $2.60 million 24.36 -$69.96 million N/A N/A

Hawkins has higher revenue and earnings than Gulf Resources.

Summary

Hawkins beats Gulf Resources on 8 of the 11 factors compared between the two stocks.

Hawkins Company Profile

Hawkins, Inc. blends, manufactures, and distributes chemicals and other specialty ingredients in the United States and internationaly. It operates in three segments: Industrial, Water Treatment, and Health and Nutrition. It provides industrial chemicals, products, and services to agriculture, chemical processing, electronics, energy, food, pharmaceutical, and plating industries. This segment primarily provides acids, alkalis, and industrial and food-grade salts. It also receives, stores, and distributes various chemicals in bulk quantities, such as liquid caustic soda, sulfuric acid, hydrochloric acid, urea, phosphoric acid, aqua ammonia, and potassium hydroxide. In addition, this segment manufactures sodium hypochlorite and agricultural products, as well as various food-grade products that include liquid phosphates, lactates, and other blended products; repackages bulk industrial chemicals; and performs custom blending of certain chemicals, and contract and private label bleach packaging. The Water Treatment segment provides chemicals, equipment, and solutions for potable water, municipal and industrial wastewater, industrial process water, and non-residential swimming pool water. The Health and Nutrition segment offers ingredient distribution, processing, and formulation solutions to manufacturers of nutraceutical, functional food and beverage, personal care, dietary supplement and other nutritional food, and health and wellness products. Its products portfolio includes minerals, botanicals and herbs, vitamins and amino acids, excipients, joint products, sweeteners, and enzymes. The company was founded in 1938 and is headquartered in Roseville, Minnesota.

Gulf Resources Company Profile

Gulf Resources, Inc., through its subsidiaries, manufactures and trades in bromine, crude salt, chemical products, and natural gas in China. It provides bromine for use in brominated flame retardants, fumigants, water purification compounds, dyes, medicines, and disinfectants. The company also offers crude salt for use as a material in alkali and chlorine alkali production; and 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. The company's chemical products include hydroxyl guar gum, demulsified agent, corrosion inhibitor, bactericide, iron ion stabilizer, clay stabilizing agent, solid lubricants, polyether lubricant, bromopropane, chlorantraniliprole, remaining agent, enhanced mild paper expansion agent, chelant, tetramethylbenzidine, trimethylolpropane, lactic acid trimethylolpropane material, and Di Bromo Aldehyde, as well as by products, such as Sodium Methoxide, Hydrobroic Acid, Sodium Bromide. Gulf Resources, Inc. is based in Shouguang, the People's Republic of China.

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