Cabot (NYSE:CBT – Get Free Report) and Northern Technologies International (NASDAQ:NTIC – Get Free Report) are both materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, risk, dividends and earnings.
Risk & Volatility
Cabot has a beta of 0.83, suggesting that its stock price is 17% less volatile than the S&P 500. Comparatively, Northern Technologies International has a beta of 0.15, suggesting that its stock price is 85% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and recommmendations for Cabot and Northern Technologies International, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Cabot | 1 | 4 | 2 | 0 | 2.14 |
| Northern Technologies International | 1 | 1 | 0 | 0 | 1.50 |
Institutional and Insider Ownership
93.2% of Cabot shares are owned by institutional investors. Comparatively, 32.9% of Northern Technologies International shares are owned by institutional investors. 3.1% of Cabot shares are owned by company insiders. Comparatively, 24.9% of Northern Technologies International shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares Cabot and Northern Technologies International’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Cabot | 5.23% | 20.29% | 9.01% |
| Northern Technologies International | -1.26% | -0.45% | -0.33% |
Earnings & Valuation
This table compares Cabot and Northern Technologies International”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Cabot | $3.71 billion | 1.05 | $331.00 million | $3.55 | 21.32 |
| Northern Technologies International | $84.24 million | 0.86 | $20,000.00 | ($0.12) | -63.83 |
Cabot has higher revenue and earnings than Northern Technologies International. Northern Technologies International is trading at a lower price-to-earnings ratio than Cabot, indicating that it is currently the more affordable of the two stocks.
Summary
Cabot beats Northern Technologies International on 13 of the 14 factors compared between the two stocks.
About Cabot
Cabot Corporation operates as a specialty chemicals and performance materials company. The company operates through two segments, Reinforcement Materials and Performance Chemicals. It offers reinforcing carbons that are used in tires as a rubber reinforcing agent and performance additive, as well as in industrial products, such as hoses, belts, extruded profiles, and molded goods; and engineered elastomer composites solutions. The company also provides specialty carbons for use in inks, coatings, plastics, adhesives, toners, batteries, and displays; conductive additives and fumed alumina used in lead acid and lithium-ion batteries for electric vehicles; fumed silica used in adhesives, sealants, cosmetics, batteries, inks, toners, silicone elastomers, coatings, polishing slurries, and pharmaceuticals; and fumed alumina for use in various products, including inkjet media, lighting, coatings, cosmetics, and polishing slurries. In addition, it offers aerogel, a hydrophobic, silica-based particle to use in various thermal insulation and specialty chemical applications; masterbatch and conductive compound products that are used in automotive, industrial, packaging, infrastructure, agriculture, consumer products, and electronics industries; and inkjet colorants for inkjet printing applications. The company sells its products through distributors and sales representatives in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. Cabot Corporation was founded in 1882 and is headquartered in Boston, Massachusetts.
About Northern Technologies International
Northern Technologies International Corporation develops and markets rust and corrosion inhibiting solutions in North America, South America, Europe, Asia, the Middle East and internationally. It offers rust and corrosion inhibiting products, such as plastic and paper packaging, liquids, coatings, rust removers, cleaners, diffusers, and engineered solutions designed for the oil and gas industry under the ZERUST brand. The company provides a portfolio of bio-based and certified compostable polymer resin compounds and finished products under the Natur-Tec brand. In addition, it offers on-site and technical consulting for rust and corrosion prevention issues. It sells its products and services to automotive, electronics, electrical, mechanical, military, retail consumer, and oil and gas markets through direct sales force, network of independent distributors, agents, manufacturer's sales representatives, and strategic partners. The company was founded in 1970 and is headquartered in Circle Pines, Minnesota.
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