Financial Review: BioLargo (NASDAQ:BLGO) versus Gulf Resources (NASDAQ:GURE)

BioLargo (NASDAQ:BLGO) and Gulf Resources (NASDAQ:GURE) are both small-cap construction companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, earnings and analyst recommendations.

Volatility & Risk

BioLargo has a beta of 0.2, indicating that its share price is 80% less volatile than the S&P 500. Comparatively, Gulf Resources has a beta of 0.16, indicating that its share price is 84% less volatile than the S&P 500.

Profitability

This table compares BioLargo and Gulf Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BioLargo	-16.53%	-58.35%	-32.12%
Gulf Resources	N/A	N/A	N/A

Analyst Recommendations

This is a summary of recent ratings and target prices for BioLargo and Gulf Resources, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BioLargo	0	0	0	0	N/A
Gulf Resources	0	0	0	0	N/A

Insider and Institutional Ownership

0.0% of BioLargo shares are owned by institutional investors. Comparatively, 3.3% of Gulf Resources shares are owned by institutional investors. 20.3% of BioLargo shares are owned by company insiders. Comparatively, 22.8% of Gulf Resources shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares BioLargo and Gulf Resources”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BioLargo	$12.23 million	5.83	-$3.50 million	($0.03)	-8.00
Gulf Resources	$41.76 million	0.25	$10.06 million	($0.51)	-1.96

Gulf Resources has higher revenue and earnings than BioLargo. BioLargo is trading at a lower price-to-earnings ratio than Gulf Resources, indicating that it is currently the more affordable of the two stocks.

Summary

Gulf Resources beats BioLargo on 8 of the 11 factors compared between the two stocks.

About BioLargo

BioLargo, Inc. invents, develops, and commercializes various platform technologies. Its technologies solve challenging environmental problems comprising per – and polyfluoroalkyl substances (PFAS) water contamination, advanced water and wastewater treatment, industrial odor and volatile organic compounds control, air quality control, infection control, and myriad environmental remediation. The company provides full-service environmental engineering services. BioLargo, Inc. was incorporated in 1991 and is based in Westminster, California.

About Gulf Resources

Gulf Resources, Inc., through its subsidiaries, manufactures and trades bromine and crude salt, chemical products, and natural gas in the People's Republic of China. The company operates through four segments: Bromine, Crude salt, Chemical products, and Natural gas segments. It also provides bromine for use in bromine compounds, intermediates in organic synthesis, brominated flame retardants, fumigants, water purification compounds, dyes, medicines, and disinfectants. In addition, the company offers crude salt for use as a material in alkali and chlorine alkali production for use in the chemical, food and beverage, and other industries. In addition, it manufactures and sells chemical products for use in oil and gas field exploration, oil and gas distribution, oil field drilling, papermaking chemical agents, and inorganic chemicals, as well as materials that are used for human and animal antibiotics. The company is based in Shouguang, the People's Republic of China.