AdvanSix (NYSE:ASIX) and Cereplast (OTCMKTS:CERPQ) are both small-cap basic materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, dividends, profitability, analyst recommendations, valuation, earnings and risk.
Risk and Volatility
AdvanSix has a beta of 1.68, indicating that its stock price is 68% more volatile than the S&P 500. Comparatively, Cereplast has a beta of -2.92, indicating that its stock price is 392% less volatile than the S&P 500.
Earnings and Valuation
This table compares AdvanSix and Cereplast’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|AdvanSix||$1.48 billion||0.51||$146.69 million||$3.00||8.38|
AdvanSix has higher revenue and earnings than Cereplast.
Institutional and Insider Ownership
79.3% of AdvanSix shares are owned by institutional investors. 0.2% of AdvanSix shares are owned by company insiders. Comparatively, 1.1% of Cereplast shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This is a breakdown of current recommendations for AdvanSix and Cereplast, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
AdvanSix presently has a consensus target price of $35.00, indicating a potential upside of 39.22%. Given AdvanSix’s higher probable upside, research analysts plainly believe AdvanSix is more favorable than Cereplast.
This table compares AdvanSix and Cereplast’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
AdvanSix beats Cereplast on 8 of the 9 factors compared between the two stocks.
AdvanSix Inc. manufactures and sells polymer resins in the United States. It offers Nylon 6, a polymer resin, which is a synthetic material used to produce engineered plastics, fibers, filaments, and films. The company also provides caprolactam, ammonium sulfate fertilizers, and acetone, as well as other intermediate chemicals, including phenol, alpha-methylstyrene, cyclohexanone, methyl ethyl ketoxime, cyclohexanol, acetaldehyde oxime, 2-pentanone oxime, sulfuric acid, ammonia, and carbon dioxide. It offers its products under the Aegis, Capran, Sulf-N, Nadone, Naxol, and EZ-Blox brands. AdvanSix Inc. was incorporated in 2016 and is headquartered in Parsippany, New Jersey.
Cereplast, Inc. develops and commercializes bio-based resins. It provides Cereplast Compostables resins, which are compostable, bio-based, and ecologically sound substitutes for petroleum-based plastics targeting compostable bags, single-use food service products, and packaging applications. The company also offers Cereplast Sustainables resins, including Cereplast Hybrid resins that replace up to 55% of the petroleum content in conventional plastics with bio-based materials, such as industrial starches sourced from plants that are used in automotive, consumer goods, consumer electronics, medical, packaging, and construction markets; and Cereplast Algae Plastic resins, which transforms algae into bioplastics. Its compostable and sustainable resins are used in injection molding, thermoforming, blown films, blow molding, extrusion for profiles, and extrusion coating. The company was formerly known as Biocorp North America Inc. and changed its name to Cereplast, Inc. in March 2005. Cereplast, Inc. was incorporated in 2001 and is headquartered in Seymour, Indiana. On March 27, 2014, the voluntary petition of Cereplast, Inc. for reorganization under Chapter 11 was converted to Chapter 7. It had filed for Chapter 11 bankruptcy on February 10, 2014.Cereplast, Inc. is in Liquidation.
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