FMC (NYSE:FMC) and Gulf Resources (NYSE:GURE) Head to Head Analysis

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

Profitability

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

Net Margins Return on Equity Return on Assets
FMC 10.65% 27.33% 8.29%
Gulf Resources N/A -3.91% -3.70%

Earnings and Valuation

This table compares FMC and Gulf Resources’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
FMC $4.73 billion 2.38 $502.10 million $6.29 13.70
Gulf Resources $2.60 million 14.80 -$69.96 million N/A N/A

FMC has higher revenue and earnings than Gulf Resources.

Analyst Recommendations

This is a summary of recent ratings and price targets for FMC and Gulf Resources, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FMC 0 3 10 0 2.77
Gulf Resources 0 0 0 0 N/A

FMC presently has a consensus target price of $98.50, indicating a potential upside of 14.15%. Given FMC’s higher possible upside, research analysts clearly believe FMC is more favorable than Gulf Resources.

Volatility and Risk

FMC has a beta of 1.49, suggesting that its stock price is 49% more volatile than the S&P 500. Comparatively, Gulf Resources has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500.

Dividends

FMC pays an annual dividend of $1.60 per share and has a dividend yield of 1.9%. Gulf Resources does not pay a dividend. FMC pays out 25.4% of its earnings in the form of a dividend.

Insider & Institutional Ownership

89.8% of FMC shares are held by institutional investors. Comparatively, 6.9% of Gulf Resources shares are held by institutional investors. 1.5% of FMC shares are held by insiders. Comparatively, 30.1% of Gulf Resources shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

FMC beats Gulf Resources on 10 of the 13 factors compared between the two stocks.

About FMC

FMC Corporation, a diversified chemical company, provides solutions, applications, and products for the agricultural, consumer, and industrial markets worldwide. The company operates in two segments, FMC Agricultural Solutions and FMC Lithium. The FMC Agricultural Solutions segment develops, manufactures, markets, and sells crop protection chemicals, including insecticides, herbicides, and fungicides that are used in agriculture to enhance crop yield and quality by controlling a range of insects, weeds, and diseases, as well as in non-agricultural markets for pest control. The FMC Lithium segment manufactures lithium for use in batteries, polymers, pharmaceuticals, greases and lubricants, glass and ceramics, and other industrial applications. FMC Corporation was founded in 1883 and is headquartered in Philadelphia, Pennsylvania.

About Gulf Resources

Gulf Resources, Inc., through its subsidiaries, manufactures and trades in bromine, crude salt, chemical products, and natural gas in the People's Republic of 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, inorganic chemicals, and materials that are used for human and animal antibiotics. Gulf Resources, Inc. is based in Shouguang, the People's Republic of China.

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