Head to Head Review: Chemtura (CHMT) vs. AdvanSix (ASIX)

Chemtura (NYSE: CHMT) and AdvanSix (NYSE:ASIX) are both basic materials companies, but which is the better stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, dividends, analyst recommendations and valuation.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Chemtura and AdvanSix, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chemtura 0 0 0 0 N/A
AdvanSix 0 0 1 0 3.00

AdvanSix has a consensus price target of $46.00, suggesting a potential upside of 11.98%. Given AdvanSix’s higher probable upside, analysts plainly believe AdvanSix is more favorable than Chemtura.

Institutional and Insider Ownership

93.1% of Chemtura shares are held by institutional investors. Comparatively, 71.4% of AdvanSix shares are held by institutional investors. 2.6% of Chemtura shares are held by company insiders. Comparatively, 2.7% of AdvanSix shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Chemtura and AdvanSix’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Chemtura N/A N/A N/A ($0.19) -176.32
AdvanSix $1.19 billion 1.05 $34.14 million $1.58 26.00

AdvanSix has higher revenue and earnings than Chemtura. Chemtura is trading at a lower price-to-earnings ratio than AdvanSix, indicating that it is currently the more affordable of the two stocks.

Profitability

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

Net Margins Return on Equity Return on Assets
Chemtura 5.71% 9.00% 4.02%
AdvanSix 3.64% 20.30% 5.64%

Summary

AdvanSix beats Chemtura on 7 of the 9 factors compared between the two stocks.

Chemtura Company Profile

Chemtura Corporation is a chemical company. The Company is engaged in developing, manufacturing and marketing of engineered industrial specialty chemicals. The Company’s products are sold to industrial manufacturing customers for use as additives, ingredients or intermediates. The Company’s segments are Industrial Performance Products and Industrial Engineered Products. The Industrial Performance Products segment manufactures and markets lubricant additive components, synthetic lubricant base-stocks, synthetic finished fluids, calcium sulfonate specialty greases and phosphate and polyester based fluids, and is also engaged in the development and production of hot cast elastomer pre-polymers. The Industrial Engineered Products segment develops and manufactures bromine and bromine-based products and organometallic compounds. The Company operates in a range of industries, including automotive, building and construction, electronics, lubricants, packaging and transportation.

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.

Receive News & Ratings for Chemtura Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Chemtura and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply