Analyzing Quaker Houghton (NYSE:KWR) and Ganfeng Lithium Group (OTCMKTS:GNENF)

Ganfeng Lithium Group (OTCMKTS:GNENF) and Quaker Houghton (NYSE:KWR) are both materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their analyst recommendations, dividends, profitability, valuation, earnings, risk and institutional ownership.

Valuation & Earnings

This table compares Ganfeng Lithium Group and Quaker Houghton”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ganfeng Lithium Group	N/A	N/A	N/A	N/A	N/A
Quaker Houghton	$1.89 billion	1.54	-$2.49 million	$5.61	30.19

Ganfeng Lithium Group has higher earnings, but lower revenue than Quaker Houghton.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Ganfeng Lithium Group and Quaker Houghton, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ganfeng Lithium Group	1	0	0	0	1.00
Quaker Houghton	1	1	4	0	2.50

Quaker Houghton has a consensus target price of $187.67, indicating a potential upside of 10.79%. Given Quaker Houghton’s stronger consensus rating and higher possible upside, analysts clearly believe Quaker Houghton is more favorable than Ganfeng Lithium Group.

Insider and Institutional Ownership

77.5% of Quaker Houghton shares are held by institutional investors. 1.0% of Quaker Houghton shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares Ganfeng Lithium Group and Quaker Houghton’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ganfeng Lithium Group	N/A	N/A	N/A
Quaker Houghton	4.94%	9.55%	4.66%

Summary

Quaker Houghton beats Ganfeng Lithium Group on 9 of the 9 factors compared between the two stocks.

About Ganfeng Lithium Group

Ganfeng Lithium Group Co., Ltd. manufactures and sells lithium products in Mainland China, rest of Asia, the European Union, North America, and internationally. It operates through three segments: Lithium Metal and Compound, Lithium Battery, and Lithium Ore Resource and Others. The company has interests in the Mount Marion mine located in Australia; Cauchari-Olaroz project situated in Jujuy Province, Northwest Argentina; Mariana project located in Salta Province, Argentina; Sonora project situated in Mexico; Pilbara Pilgangoora lithium-tantalum project located in Western Australia; Ningdu Heyuan mine situated in Ningdu County, Ganzhou City, Jiangxi Province; Avalonia project located in Ireland; Qinghai Yiliping lithium salt lake project situated in the Qinghai Province; Goulamina spodumene ore project located in southern Mali, Africa; PPG lithium salt-lake project located in Salta Province, Argentina; and Songshugang tantalum-niobium mine project located in Jiangxi Province. It offers battery-grade lithium hydroxide, battery grade lithium carbonate, cesium and rubidium compounds, lithium chloride, butyl lithium, lithium fluoride, and other lithium compounds; lithium metals in the form of ingots, foils, rods, particles, and alloy powder; polymer lithium battery; and lithium-ion motive power, energy storage, and consumer batteries, as well as copper lithium or lithium aluminum alloy foil. The company also explores for and sells lithium ores; and provides lithium battery recycling solutions. In addition, the company exports lithium products. Its products are used in the manufacture of electric vehicles, portable electronics, chemicals, and pharmaceuticals, as well as used by battery cathode materials manufacturers, battery suppliers, and automobile original equipment manufacturers. Ganfeng Lithium Group Co., Ltd. was founded in 2000 and is based in Xinyu, China.

About Quaker Houghton

Quaker Chemical Corporation, together with its subsidiaries, develops, produces, and markets various formulated specialty chemical products for a range of heavy industrial and manufacturing applications in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It offers metal removal fluids, cleaning fluids, corrosion inhibitors, metal drawing and forming fluids, die-cast mold releases, heat treatment and quenchants, metal forging fluids, hydraulic fluids, specialty greases, offshore sub-sea energy control fluids, rolling lubricants, rod and wire drawing fluids, and surface treatment chemicals. The company also provides chemical management services. It serves steel, aluminum, automotive, aerospace, offshore, container, mining, and metalworking companies. The company was founded in 1918 and is headquartered in Conshohocken, Pennsylvania.