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Critical review of Ecovyst (NYSE:ECVT) versus Gulf Resources (NASDAQ:GURE)


Ecovyst (NYSE:ECVT – Get Rating) and Gulf Resources (NASDAQ:GURE – Get Rating) are both small cap business services companies, but which is the better investment? We’ll compare the two companies based on the strength of their profitability, earnings, risk, analyst recommendations, institutional ownership, dividends and valuation.

Institutional and Insider Ownership

92.6% of Ecovyst shares are held by institutional investors. By comparison, 5.0% of Gulf Resources shares are held by institutional investors. 3.2% of Ecovyst shares are held by insiders. By comparison, 33.2% of Gulf Resources shares are held by insiders. Strong institutional ownership is an indication that endowments, large fund managers, and hedge funds believe a company will outperform the market over the long term.

Valuation and benefits

This chart compares the gross revenue, earnings per share (EPS), and valuation of Ecovyst and Gulf Resources.

Gross revenue Price/sales ratio Net revenue Earnings per share Price/earnings ratio
Ecovyst $611.20 million 2.21 -$139.95 million ($0.41) -23.76
Gulf Resources $55.03 million 0.67 -$930,000.00 $0.14 25.07

Gulf Resources has lower revenues, but higher profits than Ecovyst. Ecovyst trades at a lower price-to-earnings ratio than Gulf Resources, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and recommendations for Ecovyst and Gulf Resources, as reported by MarketBeat.com.

Sales Ratings Hold odds Buy reviews Strong buy odds Rating
Ecovyst 0 2 4 0 2.67
Gulf Resources 0 0 0 0 N / A

Ecovyst currently has a consensus target price of $14.55, suggesting a potential upside of 49.38%. Given Ecovyst’s possible higher upside, research analysts clearly believe that Ecovyst is more favorable than Gulf Resources.

Profitability

This table compares the net margins, return on equity and return on assets of Ecovyst and Gulf Resources.

Net margins Return on equity return on assets
Ecovyst -8.60% 9.78% 3.78%
Gulf Resources -1.68% -0.33% -0.31%

Risk and Volatility

Ecovyst has a beta of 0.87, which means its stock price is 13% less volatile than the S&P 500. By comparison, Gulf Resources has a beta of 0.41, which means its stock price is 59% less volatile than the S&P 500.

Summary

Ecovyst beats Gulf Resources on 8 of the 13 factors compared between the two stocks.

Ecovyst company profile (Get a rating)

Ecovyst Inc. provides specialist catalysts and services in the US, Netherlands, UK and internationally. The Company operates through two segments, Ecoservices and Catalyst Technologies. The Ecoservices segment offers sulfuric acid recycling services for the production of alkylate for refineries; and virgin sulfuric acid for mining, water treatment and industrial applications. The Catalyst Technologies segment provides catalytic products and custom process solutions to producers and licensors of polyethylene and methyl methacrylate. Its catalyst supports the production of plastics used in packaging films, bottles, containers and other molded applications. This segment also provides zeolite-based emission control catalysts, which are used to remove nitrogen oxides from diesel engine emissions, as well as sulfur dioxide from fuels during the refining process. The company was formerly known as PQ Group Holdings Inc. and changed its name to Ecovyst Inc. in August 2021. Ecovyst Inc. was founded in 1831 and is headquartered in Malvern, Pennsylvania.

Gulf Resources Company Profile (Get a rating)

Gulf Resources, Inc., through its subsidiaries, manufactures and markets crude bromine and salt, chemicals and natural gas in the People’s Republic of China. It provides bromine for use in brominated flame retardants, fumigants, water purification compounds, dyes, drugs, and disinfectants. The Company also offers raw salt for use as a material in the production of alkalis and chlorinated alkalis; and for use in the chemical, food and other industries. In addition, it manufactures and sells chemicals for oil and gas field exploration, oil and gas distribution, oil field drilling, chemical agents for papermaking and inorganic chemicals, as well as materials used for human and animal antibiotics. The company was founded in 2006 and is based in Shouguang, People’s Republic of China.



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