Contrasting LiqTech International (NASDAQ:LIQT) and Guanwei Recycling (OTCMKTS:GPRC)

LiqTech International (NASDAQ:LIQT) and Guanwei Recycling (OTCMKTS:GPRC) are both industrials companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, dividends, analyst recommendations, risk, profitability and earnings.

Valuation & Earnings

This table compares LiqTech International and Guanwei Recycling”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LiqTech International	$14.60 million	0.97	-$10.35 million	($1.49)	-0.99
Guanwei Recycling	N/A	N/A	N/A	N/A	N/A

Guanwei Recycling has lower revenue, but higher earnings than LiqTech International.

Profitability

This table compares LiqTech International and Guanwei Recycling’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LiqTech International	-68.79%	-74.41%	-33.72%
Guanwei Recycling	N/A	N/A	N/A

Insider & Institutional Ownership

35.1% of LiqTech International shares are held by institutional investors. 12.8% of LiqTech International shares are held by insiders. Comparatively, 61.6% of Guanwei Recycling shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and target prices for LiqTech International and Guanwei Recycling, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LiqTech International	0	0	2	0	3.00
Guanwei Recycling	0	0	0	0	0.00

LiqTech International presently has a consensus target price of $4.80, suggesting a potential upside of 224.32%. Given LiqTech International’s stronger consensus rating and higher probable upside, equities research analysts clearly believe LiqTech International is more favorable than Guanwei Recycling.

Summary

LiqTech International beats Guanwei Recycling on 5 of the 9 factors compared between the two stocks.

About LiqTech International

LiqTech International, Inc., a clean technology company, designs, develops, produces, markets, and sells automated filtering systems, ceramic silicon carbide liquid applications, and diesel particulate air filters in the United States, Canada, Europe, Asia, and South America. The company operates through Water, Ceramics, and Plastics segments. It also manufactures and sells silicon carbide ceramic filtration technologies for liquid and gas purification; and diesel particulate filters for exhaust emission control solutions to the verified retrofit and the original equipment manufacturer market. In addition, the company develops, manufactures, and sells liquid filtration systems, which are used for the marine scrubber systems, filtration of produced water, industrial applications, pool and spa water, food and beverage application, and silicon carbide membrane technology. Further, it provides flexible and plastics manufacturing products for machining, welding, bending, and solvent cementing. LiqTech International, Inc. sells its products primarily to industrial customers through direct sales, systems integrators, distributors, agents, and partners. The company was formerly known as Blue Moose Media, Inc. and changed its name to LiqTech International, Inc. in October 2011. LiqTech International, Inc. was founded in 2000 and is headquartered in Ballerup, Denmark.

About Guanwei Recycling

Guanwei Recycling Corp. manufactures and distributes low density polyethylene (LDPE) and other recycled plastics products primarily in the People's Republic of China and internationally. It imports and recycles LDPE plastic scrap material into granular plastic for use in the manufacture of various consumer products. The company's LDPE products are used in the manufacture of chemical and functional fibers, as well as a raw material in the manufacture of shoe soles, insulation materials, fire-proofing and water-proofing materials, and foam. It also sells its products to customers in a range of industries, including shoe manufacturing, architecture and engineering products, industrial equipment and supplies, and chemical and petrochemical manufacturing. Guanwei Recycling Corp. was founded in 2005 and is based in Fuqing, the People's Republic of China.