Critical Survey: Liquidmetal Technologies (OTCMKTS:LQMT) versus Gulf Resources (OTCMKTS:GURE)

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

Earnings and Valuation

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Gulf Resources $2.60 million 16.78 -$69.96 million N/A N/A
Liquidmetal Technologies $530,000.00 166.48 -$7.43 million N/A N/A

Liquidmetal Technologies has lower revenue, but higher earnings than Gulf Resources.

Volatility & Risk

Gulf Resources has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500. Comparatively, Liquidmetal Technologies has a beta of 1.4, suggesting that its share price is 40% more volatile than the S&P 500.

Analyst Ratings

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

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

Insider & Institutional Ownership

6.8% of Gulf Resources shares are held by institutional investors. Comparatively, 0.1% of Liquidmetal Technologies shares are held by institutional investors. 30.1% of Gulf Resources shares are held by company insiders. Comparatively, 47.7% of Liquidmetal Technologies shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Gulf Resources N/A -4.94% -4.82%
Liquidmetal Technologies -1,001.93% -16.13% -15.29%

Summary

Gulf Resources beats Liquidmetal Technologies on 5 of the 9 factors compared between the two stocks.

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.

About Liquidmetal Technologies

Liquidmetal Technologies, Inc., a materials technology and manufacturing company, designs, develops, manufactures, and sells products and parts from bulk amorphous alloys to customers in various industries. It offers components for non-consumer electronic devices, including aerospace components, medical devices, sporting goods, leisure products, automotive components, and industrial machines. The company also provides liquidmetal alloys for use in the medical/dental, automotive, non-consumer electronics, and sporting equipment. Its products related to medical devices include specialized blades, clamps, tissue suturing components, dental devices, and general surgery devices, as well as tissue manipulation devices and orthopedic instruments utilized for implant surgery procedures. In addition, the company offers sporting goods, including golf clubs, tennis rackets, archery, sporting arms, and scuba equipment; and leisure products, such as watchcases and knives. Further, it sells tooling and prototyping parts, such as demonstration parts and test samples for customers with products in development; and partners with third-party manufacturers and licensees to develop and commercialize liquidmetal alloy products. Liquidmetal Technologies, Inc. was founded in 1987 and is based in Rancho Santa Margarita, California.

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