Analyzing Northern Technologies International (NASDAQ:NTIC) & Covestro (OTCMKTS:COVTY)

Covestro (OTCMKTS:COVTY – Get Free Report) and Northern Technologies International (NASDAQ:NTIC – Get Free Report) are both materials companies, but which is the better business? We will compare the two companies based on the strength of their valuation, earnings, dividends, analyst recommendations, risk, profitability and institutional ownership.

Profitability

This table compares Covestro and Northern Technologies International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Covestro N/A N/A N/A
Northern Technologies International -1.26% -0.45% -0.33%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Covestro and Northern Technologies International, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Covestro 0 1 0 0 2.00
Northern Technologies International 1 1 0 0 1.50

Insider & Institutional Ownership

32.9% of Northern Technologies International shares are owned by institutional investors. 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.

Earnings & Valuation

This table compares Covestro and Northern Technologies International”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Covestro $14.64 billion 0.93 -$728.62 million ($2.53) -12.95
Northern Technologies International $84.24 million 0.86 $20,000.00 ($0.12) -63.75

Northern Technologies International has lower revenue, but higher earnings than Covestro. Northern Technologies International is trading at a lower price-to-earnings ratio than Covestro, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Covestro has a beta of 0.97, indicating that its share price is 3% less volatile than the S&P 500. Comparatively, Northern Technologies International has a beta of 0.15, indicating that its share price is 85% less volatile than the S&P 500.

Summary

Covestro beats Northern Technologies International on 8 of the 12 factors compared between the two stocks.

About Covestro

(Get Free Report)

Covestro AG supplies high-tech polymer materials and application solutions. It operates in two segments, Performance Materials, and Solutions & Specialties. The Performance Materials segment develops, produces, and supplies high-performance materials, such as polyurethanes and polycarbonates, and base chemicals, which include diphenylmethane diisocyanate (MDI), toluylene diisocyanate, long-chain polyols, and polycarbonate resins for use in furniture and wood processing, construction, automotive, and transportation industries, as well as roof structures, insulation for buildings and refrigerators, mattresses, car seats, and other applications. The Solutions & Specialties segment comprises a range of polymer products, including polycarbonates, precursors for coatings and adhesives, MDI specialties and polyols, thermoplastic polyurethanes, specialty films, and elastomers that are used in automotive and transportation, electrical, electronics and household appliances, construction, and healthcare industries, as well as composite resins for solar panel frames, laptops, floodlights, and electric vehicle batteries. The company markets its products through trading houses and distributors. It operates in Europe, the Middle East, Africa, Latin America, the United States, Canada, and the People's Republic of China. The company was founded in 1863 and is headquartered in Leverkusen, Germany.

About Northern Technologies International

(Get Free Report)

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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