Ferro Corporation (NYSE: FOE) and AdvanSix (NASDAQ:ASIX) are both small-cap basic materials companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, earnings, risk and analyst recommendations.

Institutional & Insider Ownership

95.7% of Ferro Corporation shares are owned by institutional investors. 2.0% of Ferro Corporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations for Ferro Corporation and AdvanSix, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ferro Corporation 0 0 4 0 3.00
AdvanSix 0 0 1 0 3.00

Ferro Corporation presently has a consensus price target of $23.00, indicating a potential downside of 2.91%. AdvanSix has a consensus price target of $46.00, indicating a potential upside of 4.43%. Given AdvanSix’s higher possible upside, analysts plainly believe AdvanSix is more favorable than Ferro Corporation.

Profitability

This table compares Ferro Corporation and AdvanSix’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ferro Corporation 1.06% 35.05% 7.69%
AdvanSix 7.13% 40.03% 11.07%

Earnings & Valuation

This table compares Ferro Corporation and AdvanSix’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Ferro Corporation $1.24 billion 1.60 $174.53 million $0.15 157.94
AdvanSix $1.32 billion 1.02 $135.96 million N/A N/A

Ferro Corporation has higher revenue, but lower earnings than AdvanSix.

Summary

Ferro Corporation beats AdvanSix on 6 of the 11 factors compared between the two stocks.

About Ferro Corporation

Ferro Corporation (Ferro) produces specialty materials that are sold to a range of manufacturers. The Company’s segments include Performance Coatings; Performance Colors and Glass, and Pigments, Powders and Oxides. Its Performance Coatings segment includes Tile Coating Systems and Porcelain Enamel. Its manufacturers make products for various end-use markets. The Company’s products fall into two general categories: functional coatings, which perform specific functions in the manufacturing processes and end products of its customers, and color solutions, which provide aesthetic and performance characteristics to its customers’ products. Its products are used in a range of product applications in markets, including appliances, automobiles, building and renovation, electronics, household furnishings, industrial products and packaging.

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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