Versum Materials (NYSE: VSM) and AdvanSix (NASDAQ:ASIX) are both basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, earnings, institutional ownership and dividends.

Dividends

Versum Materials pays an annual dividend of $0.20 per share and has a dividend yield of 0.5%. AdvanSix does not pay a dividend.

Profitability

This table compares Versum Materials and AdvanSix’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Versum Materials 17.91% -261.88% 18.25%
AdvanSix 7.13% 40.03% 11.07%

Institutional and Insider Ownership

89.6% of Versum Materials shares are owned by institutional investors. 0.5% of Versum Materials shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Versum Materials and AdvanSix’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Versum Materials $1.08 billion 3.99 $355.80 million N/A N/A
AdvanSix $1.32 billion 0.95 $135.96 million N/A N/A

Versum Materials has higher revenue, but lower earnings than AdvanSix.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Versum Materials and AdvanSix, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Versum Materials 0 4 6 0 2.60
AdvanSix 0 0 1 0 3.00

Versum Materials currently has a consensus target price of $38.11, suggesting a potential downside of 3.71%. AdvanSix has a consensus target price of $40.00, suggesting a potential downside of 2.98%. Given AdvanSix’s stronger consensus rating and higher possible upside, analysts clearly believe AdvanSix is more favorable than Versum Materials.

Summary

Versum Materials beats AdvanSix on 8 of the 12 factors compared between the two stocks.

About Versum Materials

Versum Materials, Inc. is a provider of solutions to the semiconductor and display industries. The Company is engaged in the development, manufacturing, transportation and handling of specialty materials. Its segments include Materials; Delivery Systems and Services (DS&S), and Corporate. The Materials segment is an integrated provider of specialty materials for the electronics industry, focusing on the integrated circuit and flat-panel display markets. The DS&S segment designs, manufactures, installs, operates, and maintains chemical and gas delivery and distribution systems for specialty gases and chemicals delivered directly to its customers’ manufacturing tools. The Company is engaged in molecular design and synthesis, purification, advanced analytics, formulation development and containers and delivery systems for the handling of high purity materials.

About AdvanSix

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.

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