AdvanSix (ASIX) versus Sigma-Aldrich (SIAL) Critical Review

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

Profitability

This table compares AdvanSix and Sigma-Aldrich’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AdvanSix 3.64% 20.30% 5.64%
Sigma-Aldrich 16.22% 13.72% 10.47%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for AdvanSix and Sigma-Aldrich, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AdvanSix 0 0 1 0 3.00
Sigma-Aldrich 0 0 0 0 N/A

AdvanSix presently has a consensus target price of $46.00, indicating a potential upside of 18.68%.

Insider & Institutional Ownership

71.3% of AdvanSix shares are owned by institutional investors. 2.7% of AdvanSix shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares AdvanSix and Sigma-Aldrich’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AdvanSix $1.19 billion 0.99 $34.14 million $1.59 24.38
Sigma-Aldrich N/A N/A N/A $4.08 N/A

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

Summary

AdvanSix beats Sigma-Aldrich on 5 of the 8 factors compared between the two stocks.

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.

About Sigma-Aldrich

Sigma-Aldrich Corporation is a life science and high technology company. The Company develops, manufactures, purchases and distributes a range of biochemical and organic chemical products, kits and services that are used in scientific research. It manufactures and distributes around 250,000 chemicals, biochemical and other essential products and approximately 46,000 equipment products. Its business unit structure is aligned into three business units: Research, Applied and SAFC Commercial. Its brands include Sigma-Aldrich, Sigma, Aldrich, Fluka, Riedel-de Haen, Supelco, SAFC, SAFC Biosciences, SAFC Hitech, Genosys, Proligo, Pharmorphix, Cerilliant, Vetec, BioReliance and Cell Marque. It offers its products and services to research and applied labs, pharmaceutical companies, universities, commercial laboratories, industrial companies, biotechnology companies and non-profit organizations, among others. It operates in around 37 countries and sells into approximately 160 countries.

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