AdvanSix (NYSE: ASIX) and OMNOVA Solutions (NYSE:OMN) are both small-cap basic materials companies, but which is the better business? We will compare the two companies based on the strength of their institutional ownership, earnings, valuation, analyst recommendations, risk, dividends and profitability.
Insider and Institutional Ownership
71.4% of AdvanSix shares are held by institutional investors. Comparatively, 88.9% of OMNOVA Solutions shares are held by institutional investors. 2.7% of AdvanSix shares are held by insiders. Comparatively, 4.8% of OMNOVA Solutions shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
This table compares AdvanSix and OMNOVA Solutions’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|AdvanSix||$1.19 billion||1.03||$34.14 million||$1.58||25.45|
|OMNOVA Solutions||$759.90 million||0.57||-$400,000.00||($0.14)||-68.93|
AdvanSix has higher revenue and earnings than OMNOVA Solutions. OMNOVA Solutions is trading at a lower price-to-earnings ratio than AdvanSix, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
AdvanSix has a beta of 2.84, indicating that its stock price is 184% more volatile than the S&P 500. Comparatively, OMNOVA Solutions has a beta of 2.17, indicating that its stock price is 117% more volatile than the S&P 500.
This table compares AdvanSix and OMNOVA Solutions’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings for AdvanSix and OMNOVA Solutions, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
AdvanSix presently has a consensus price target of $46.00, indicating a potential upside of 14.40%. OMNOVA Solutions has a consensus price target of $12.00, indicating a potential upside of 24.35%. Given OMNOVA Solutions’ higher probable upside, analysts clearly believe OMNOVA Solutions is more favorable than AdvanSix.
AdvanSix beats OMNOVA Solutions on 9 of the 14 factors compared between the two stocks.
AdvanSix Inc. is an integrated manufacturer of Nylon 6. The Company also sells a variety of other products, all of which are produced as part of the Nylon 6 resin manufacturing process primarily, including caprolactam, ammonium sulfate fertilizers and other chemical intermediates. The Company operates primarily through its integrated manufacturing sites located in Frankford, Pennsylvania, Hopewell, Virginia, and Chesterfield, Virginia. The Company offers ammonium sulfate, which is used by customers as a nitrogen-based fertilizer. It produces ammonium sulfate fertilizer as part of its manufacturing process. The Company manufactures ammonium sulfate fertilizers including Sulf-N and Sulf-N 26. The Company provides AdvanSix Aegis nylon resins and Aegis barrier nylon resins. Its nylon resins are a preferred choice in food, liquid, and consumer packaging along with mono/multifilament products, carpet fibers, automotive compounding and more. It offers Capran biaxially oriented nylon films.
About OMNOVA Solutions
OMNOVA Solutions Inc. is a provider of emulsion polymers, specialty chemicals and engineered surfaces for commercial, industrial and residential end uses. The Company’s segments include Performance Chemicals and Engineered Surfaces. The Performance Chemicals segment produces a range of emulsion polymers and specialty chemicals based on styrene butadiene, styrene butadiene acrylonitrile, styrene butadiene vinyl pyridine, nitrile butadiene, polyvinyl acetate, acrylic, styrene acrylic, vinyl acrylic, glyoxal, fluorochemical and bio-based chemistries. The Engineered Surfaces segment develops, designs, produces and markets a line of functional and decorative surfacing products, including coated fabrics, vinyl, paper, and specialty laminates and industrial films. The Performance Chemicals segment includes two product lines: Performance Materials and Specialty Chemicals, and the Engineered Surfaces segment includes two product lines: Coated Fabrics, and Laminates and Performance Films.
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