Gulf Resources (NASDAQ: GURE) is one of 33 publicly-traded companies in the “Chemicals & allied products” industry, but how does it contrast to its peers? We will compare Gulf Resources to similar businesses based on the strength of its earnings, valuation, profitability, dividends, institutional ownership, analyst recommendations and risk.
Profitability
This table compares Gulf Resources and its peers’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Gulf Resources | 1.01% | 0.17% | 0.16% |
| Gulf Resources Competitors | -7.75% | 18.29% | 5.24% |
Valuation and Earnings
This table compares Gulf Resources and its peers revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Net Income | Price/Earnings Ratio | |
| Gulf Resources | $28.21 million | -$8.42 million | 86.42 |
| Gulf Resources Competitors | $6.83 billion | $29.10 million | 12.36 |
Gulf Resources’ peers have higher revenue and earnings than Gulf Resources. Gulf Resources is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.
Institutional & Insider Ownership
6.0% of Gulf Resources shares are held by institutional investors. Comparatively, 73.1% of shares of all “Chemicals & allied products” companies are held by institutional investors. 33.2% of Gulf Resources shares are held by insiders. Comparatively, 9.5% of shares of all “Chemicals & allied products” companies are held by 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.
Risk and Volatility
Gulf Resources has a beta of 0.46, indicating that its stock price is 54% less volatile than the S&P 500. Comparatively, Gulf Resources’ peers have a beta of 1.88, indicating that their average stock price is 88% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and price targets for Gulf Resources and its peers, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Gulf Resources | 0 | 0 | 0 | 0 | N/A |
| Gulf Resources Competitors | 259 | 1094 | 1413 | 47 | 2.44 |
As a group, “Chemicals & allied products” companies have a potential upside of 28.47%. Given Gulf Resources’ peers higher possible upside, analysts clearly believe Gulf Resources has less favorable growth aspects than its peers.
Summary
Gulf Resources peers beat Gulf Resources on 7 of the 10 factors compared.
Gulf Resources Company Profile
Gulf Resources, Inc. is a holding company that engages in the manufacture of chemical products. It operates through the following segments: Bromine, Crude Salt, Chemical Products, and Natural Gas. It produces and trades bromine, crude salt and natural gas, and manufacture and sell chemical products used in oil and gas field exploration, oil and gas distribution, oil field drilling, papermaking chemical agents, inorganic chemicals, and manufacturer of materials for human and animal antibiotics. The company was founded by Ming Yang on February 28, 1989 and is headquartered in Shouguang, China.
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