Analyzing China Carbon Graphite Group (OTCMKTS:CHGI) & Shin-Etsu Chemical (OTCMKTS:SHECY)

Shin-Etsu Chemical (OTCMKTS:SHECY) and China Carbon Graphite Group (OTCMKTS:CHGI) are both basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, valuation, risk, institutional ownership, earnings, analyst recommendations and dividends.

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for Shin-Etsu Chemical and China Carbon Graphite Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Shin-Etsu Chemical	0	1	0	0	2.00
China Carbon Graphite Group	0	0	0	0	0.00

Given China Carbon Graphite Group’s higher probable upside, analysts clearly believe China Carbon Graphite Group is more favorable than Shin-Etsu Chemical.

Valuation & Earnings

This table compares Shin-Etsu Chemical and China Carbon Graphite Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Shin-Etsu Chemical	$16.82 billion	4.35	$3.56 billion	$0.86	21.44
China Carbon Graphite Group	N/A	N/A	N/A	N/A	N/A

Shin-Etsu Chemical has higher revenue and earnings than China Carbon Graphite Group.

Institutional & Insider Ownership

0.0% of Shin-Etsu Chemical shares are owned by institutional investors. 5.5% of China Carbon Graphite Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility & Risk

Shin-Etsu Chemical has a beta of 1.36, meaning that its share price is 36% more volatile than the S&P 500. Comparatively, China Carbon Graphite Group has a beta of -1.58, meaning that its share price is 258% less volatile than the S&P 500.

Profitability

This table compares Shin-Etsu Chemical and China Carbon Graphite Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Shin-Etsu Chemical	18.96%	10.75%	8.93%
China Carbon Graphite Group	N/A	N/A	N/A

Summary

Shin-Etsu Chemical beats China Carbon Graphite Group on 7 of the 9 factors compared between the two stocks.

About Shin-Etsu Chemical

Shin-Etsu Chemical Co., Ltd. provides infrastructure, electronics, and functional materials in Japan. It is also involved in processing and specialized related services. The company operates through Infrastructure Materials; Electronics Materials; Functional Materials; and Processing and Specialized Services segments. In addition, it offers cellulose derivatives, synthetic pheromones, aroma chemicals, dielectric and LED/ semiconductor materials, silanes, photoresists, chlorides, caustic soda, liquid fluoroelastomers, polyvinyl chloride and vinyl acetate resin, silicones, and silicones processed goods. Further, the company offers pellicles, photomask blanks, synthetic quartz/ quartz cloth, pyrolytic boron nitride, LIB anode material, and silicon metal. Additionally, it provides rare earth magnets, compound semiconductors, and oxide single crystals. The company was formerly known as Shin-Etsu Nitrogen Fertilizer Co., Ltd. and changed its name to Shin-Etsu Chemical Co., Ltd. in 1940. Shin-Etsu Chemical Co., Ltd. was incorporated in 1926 and is headquartered in Tokyo, Japan.

About China Carbon Graphite Group

China Carbon Graphite Group, Inc., together with its subsidiaries, engages in the research and development, manufacture, rework, and sale of graphene, graphene oxide, carbon graphite felt, and graphite bipolar plates in the People's Republic of China. Its graphene oxide is used as a conductive agent in lithium ion batteries, super capacitors, rubber and plastic additives, conductive inks, special coatings, transparent conductive thin films, and chips; and graphite bipolar plates are used in solar power storage. The company operates roycarbon.com, a business-to-business and business-to-consumers Internet portal for graphite related products. China Carbon Graphite Group, Inc. was founded in 1986 and is based in Diamond Bar, California.