Critical Survey: AdvanSix (ASIX) & OMNOVA Solutions (OMN)
AdvanSix (NYSE: ASIX) and OMNOVA Solutions (NYSE:OMN) are both small-cap basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, dividends, institutional ownership, risk, earnings and analyst recommendations.
Insider and Institutional Ownership
71.4% of AdvanSix shares are owned by institutional investors. Comparatively, 88.9% of OMNOVA Solutions shares are owned by institutional investors. 2.7% of AdvanSix shares are owned by insiders. Comparatively, 4.8% of OMNOVA Solutions shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
This table compares AdvanSix and OMNOVA Solutions’ revenue, earnings per share (EPS) 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||25.50|
|OMNOVA Solutions||$759.90 million||0.60||-$400,000.00||($0.13)||-78.46|
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.
Risk & Volatility
AdvanSix has a beta of 2.84, meaning that its stock price is 184% more volatile than the S&P 500. Comparatively, OMNOVA Solutions has a beta of 2.18, meaning that its stock price is 118% more volatile than the S&P 500.
This is a summary of current ratings for AdvanSix and OMNOVA Solutions, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
AdvanSix presently has a consensus target price of $46.00, indicating a potential upside of 14.17%. OMNOVA Solutions has a consensus target price of $12.00, indicating a potential upside of 17.65%. Given OMNOVA Solutions’ higher possible upside, analysts plainly believe OMNOVA Solutions is more favorable than AdvanSix.
This table compares AdvanSix and OMNOVA Solutions’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
AdvanSix beats OMNOVA Solutions on 9 of the 14 factors compared between the two stocks.
AdvanSix Company Profile
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.
OMNOVA Solutions Company Profile
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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