Critical Contrast: Loop Industries (NASDAQ:LOOP) vs. Northern Technologies International (NASDAQ:NTIC)

Northern Technologies International (NASDAQ:NTIC) and Loop Industries (NASDAQ:LOOP) are both small-cap materials companies, but which is the better stock? We will contrast the two businesses based on the strength of their risk, dividends, earnings, profitability, analyst recommendations, institutional ownership and valuation.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Northern Technologies International	-1.26%	-0.45%	-0.33%
Loop Industries	N/A	N/A	-122.85%

Earnings and Valuation

This table compares Northern Technologies International and Loop Industries”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Northern Technologies International	$84.24 million	0.89	$20,000.00	($0.12)	-65.75
Loop Industries	$510,000.00	47.24	-$12.30 million	($0.26)	-1.92

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

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Northern Technologies International and Loop Industries, as provided by MarketBeat.com.

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

Insider and Institutional Ownership

32.9% of Northern Technologies International shares are held by institutional investors. Comparatively, 4.9% of Loop Industries shares are held by institutional investors. 24.9% of Northern Technologies International shares are held by insiders. Comparatively, 49.7% of Loop Industries shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk and Volatility

Northern Technologies International has a beta of 0.18, suggesting that its stock price is 82% less volatile than the S&P 500. Comparatively, Loop Industries has a beta of 1.46, suggesting that its stock price is 46% more volatile than the S&P 500.

Summary

Loop Industries beats Northern Technologies International on 7 of the 12 factors compared between the two stocks.

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.

About Loop Industries

Loop Industries, Inc., a technology company, focuses on depolymerizing waste polyethylene terephthalate PET plastics and polyester fibers, including plastic bottles, packaging, carpets and textiles of any color, transparency and even ocean plastics that have been degraded by the sun and salt, to its base building blocks. Its polymerized monomers into virgin-quality PET resins for use in food-grade plastic packaging, such as plastic bottles for water and carbonated soft drinks, and containers for food and other consumer products; and polyester fibers, including textiles, clothing, and apparel. The company was incorporated in 2010 and is based in Terrebonne, Canada.