AdvanSix (NYSE: ASIX) and Valvoline (NYSE:VVV) are both basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, institutional ownership and valuation.
Valuation and Earnings
This table compares AdvanSix and Valvoline’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|AdvanSix||$1.19 billion||0.99||$34.14 million||$1.58||24.60|
|Valvoline||$2.08 billion||2.42||$304.00 million||$1.49||16.77|
This table compares AdvanSix and Valvoline’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility and Risk
AdvanSix has a beta of 2.97, indicating that its stock price is 197% more volatile than the S&P 500. Comparatively, Valvoline has a beta of 1.59, indicating that its stock price is 59% more volatile than the S&P 500.
Valvoline pays an annual dividend of $0.30 per share and has a dividend yield of 1.2%. AdvanSix does not pay a dividend. Valvoline pays out 20.1% of its earnings in the form of a dividend.
This is a summary of recent ratings and price targets for AdvanSix and Valvoline, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
AdvanSix presently has a consensus target price of $46.00, suggesting a potential upside of 18.37%. Valvoline has a consensus target price of $25.71, suggesting a potential upside of 2.90%. Given AdvanSix’s stronger consensus rating and higher probable upside, research analysts plainly believe AdvanSix is more favorable than Valvoline.
Institutional and Insider Ownership
71.3% of AdvanSix shares are held by institutional investors. Comparatively, 92.4% of Valvoline shares are held by institutional investors. 2.7% of AdvanSix shares are held by company insiders. Comparatively, 0.1% of Valvoline shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
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.
Valvoline Company Profile
Valvoline Inc. (Valvoline) is engaged in the production and distribution of automotive, commercial and industrial lubricants, and automotive chemicals. The Company operates through three segments: Core North America, Quick Lubes and International. The Core North America segment sells Valvoline, and other branded and private label products in the United States and Canada to both consumers performing their own automotive maintenance, referred to as Do-It-Yourself (DIY) consumers, as well as, to installer customers using Valvoline products to service vehicles owned by Do-It-For-Me (DIFM) consumers. Its Quick Lubes segment services the passenger car and light truck quick lube market through platforms, including its franchised Valvoline Instant Oil Change (VIOC) stores and Express Care. Its International segment sells Valvoline and other branded products through its affiliates, joint ventures, licensees and independent distributors. Its products include All Climate, DuraBlend and MaxLife.
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