Tantech (NASDAQ:TANH) vs. Kronos Worldwide (NYSE:KRO) Critical Review

Kronos Worldwide (NYSE:KRO) and Tantech (NASDAQ:TANH) are both small-cap basic materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, dividends, earnings and analyst recommendations.

Analyst Recommendations

This is a summary of current ratings for Kronos Worldwide and Tantech, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kronos Worldwide	2	0	0	1	2.00
Tantech	1	0	0	0	1.00

Kronos Worldwide currently has a consensus target price of $5.00, indicating a potential downside of 24.47%. Given Kronos Worldwide’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Kronos Worldwide is more favorable than Tantech.

Insider and Institutional Ownership

15.1% of Kronos Worldwide shares are held by institutional investors. Comparatively, 6.0% of Tantech shares are held by institutional investors. 0.2% of Kronos Worldwide shares are held by insiders. Comparatively, 3.8% of Tantech shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Risk and Volatility

Kronos Worldwide has a beta of 1, meaning that its share price has a similar volatility profile to the S&P 500.Comparatively, Tantech has a beta of 0.59, meaning that its share price is 41% less volatile than the S&P 500.

Profitability

This table compares Kronos Worldwide and Tantech’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kronos Worldwide	-7.12%	-15.01%	-6.33%
Tantech	N/A	N/A	N/A

Earnings and Valuation

This table compares Kronos Worldwide and Tantech”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kronos Worldwide	$1.88 billion	0.41	-$110.90 million	($1.16)	-5.71
Tantech	$38.36 million	0.07	-$31.02 million	N/A	N/A

Tantech has lower revenue, but higher earnings than Kronos Worldwide.

Summary

Kronos Worldwide beats Tantech on 7 of the 12 factors compared between the two stocks.

About Kronos Worldwide

Kronos Worldwide, Inc. produces and markets titanium dioxide pigments (TiO2) in Europe, North America, the Asia Pacific, and internationally. The company produces TiO2 in two crystalline forms, rutile and anatase to impart whiteness, brightness, opacity, and durability for various products, including paints, coatings, plastics, paper, fibers, and ceramics, as well as for various specialty products, such as inks, foods, and cosmetics. It also produces ilmenite, a raw material used directly as a feedstock by sulfate-process TiO2 plants; iron-based chemicals, which are used as treatment and conditioning agents for industrial effluents and municipal wastewater, as well as in the manufacture of iron pigments, cement, and agricultural products; specialty chemicals for use in the formulation of pearlescent pigments, and production of electroceramic capacitors for cell phones and other electronic devices, as well as for use in natural gas pipe, and other specialty applications. In addition, the company provides technical services for its products. It sells its products under the KRONOS brand through agents and distributors to paint, plastics, decorative laminate, and paper manufacturers. The company was founded in 1916 and is headquartered in Dallas, Texas. Kronos Worldwide, Inc. is a subsidiary of Valhi, Inc.

About Tantech

Tantech Holdings Ltd, together with its subsidiaries, develops and manufactures bamboo-based charcoal products for industrial energy, household cooking, heating, purification, agricultural, and cleaning applications in the People's Republic of China and internationally. The company operates in three segments: Consumer Products, Electric Vehicles, and Biodegradable Packaging. It provides pressed and formed charcoal briquettes for use in grills, incense burners, and other applications under the Algold brand. The company also offers Charcoal Doctor branded products, such as air purifiers and humidifiers, automotive accessories for air purification, underfloor humidity control products, pillows and mattresses, wardrobe deodorizers, mouse pads and wrist mats, refrigerator deodorants, charcoal toilet cleaner disks, liquid charcoal cleaners, shoe insoles, and decorative charcoal gifts. In addition, it provides bamboo vinegar, a liquid byproduct for use in disinfectants, detergents, lotions, specialized soaps, toilet cleaners, and fertilizers, as well as in various agricultural applications; and trades in charcoal products. Further, the company develops and sells electric buses, electric logistics cars, and specialty electric vehicles, such as brushless cleaning cars, electric cleaning cars, special emergency vehicles, and funeral cars; and solar cells, lithium-ion batteries, auto parts, and electric control systems. It is also involved in the biodegradable packaging and supply chain businesses, as well as provides commercial factoring services. The company was founded in 1998 and is headquartered in Lishui, the People's Republic of China.