Avient (NYSE:AVNT – Get Free Report) and Gulf Resources (NASDAQ:GURE – Get Free Report) are both basic materials companies, but which is the better stock? We will compare the two companies based on the strength of their risk, dividends, institutional ownership, earnings, analyst recommendations, profitability and valuation.
Risk and Volatility
Avient has a beta of 1.46, meaning that its stock price is 46% more volatile than the S&P 500. Comparatively, Gulf Resources has a beta of 0.38, meaning that its stock price is 62% less volatile than the S&P 500.
Earnings & Valuation
This table compares Avient and Gulf Resources”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Avient | $3.24 billion | 0.89 | $169.50 million | $1.23 | 25.48 |
| Gulf Resources | $7.66 million | 0.66 | -$58.94 million | ($48.05) | -0.08 |
Avient has higher revenue and earnings than Gulf Resources. Gulf Resources is trading at a lower price-to-earnings ratio than Avient, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Avient and Gulf Resources’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Avient | 3.49% | 10.75% | 4.25% |
| Gulf Resources | -286.77% | -20.62% | -17.50% |
Institutional & Insider Ownership
95.5% of Avient shares are owned by institutional investors. Comparatively, 3.3% of Gulf Resources shares are owned by institutional investors. 0.9% of Avient shares are owned by insiders. Comparatively, 3.2% of Gulf Resources 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.
Analyst Ratings
This is a summary of current ratings for Avient and Gulf Resources, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Avient | 0 | 5 | 4 | 1 | 2.60 |
| Gulf Resources | 1 | 0 | 0 | 0 | 1.00 |
Avient currently has a consensus price target of $42.50, indicating a potential upside of 35.59%. Given Avient’s stronger consensus rating and higher probable upside, research analysts plainly believe Avient is more favorable than Gulf Resources.
Summary
Avient beats Gulf Resources on 14 of the 15 factors compared between the two stocks.
About Avient
Avient Corporation operates as a formulator of material solutions in the United States, Canada, Mexico, Europe, South America, and Asia. It operates in two segments, Color, Additives and Inks; and Specialty Engineered Materials. The Color, Additives and Inks segment offers custom color and additive concentrates in solid and liquid form for thermoplastics, dispersions for thermosets, and specialty inks; custom-formulated liquid system, such as polyester, vinyl, natural rubber and latex, polyurethane, and silicone; and proprietary inks. Its products are used in medical and pharmaceutical devices, food packaging, personal care and cosmetics, transportation, building products, wire and cable, recreational and athletic apparel, construction and filtration, outdoor furniture, healthcare, textiles and appliances, and industrial markets. The Specialty Engineered Materials segment provides specialty polymer formulations, services, and solutions for designers, assemblers, and processors of thermoplastic materials. It sells its products through direct sales personnel, distributors, and commissioned sales agents. The company was formerly known as PolyOne Corporation and changed its name to Avient Corporation in June 2020. Avient Corporation was founded in 1885 and is headquartered in Avon Lake, Ohio.
About Gulf Resources
Gulf Resources, Inc., through its subsidiaries, manufactures and trades bromine and crude salt, chemical products, and natural gas in the People’s Republic of China. The company operates through four segments: Bromine, Crude salt, Chemical products, and Natural gas segments. It also provides bromine for use in bromine compounds, intermediates in organic synthesis, brominated flame retardants, fumigants, water purification compounds, dyes, medicines, and disinfectants. In addition, the company offers crude salt for use as a material in alkali and chlorine alkali production for use in the chemical, food and beverage, and other industries. In addition, it manufactures and sells chemical products for use in oil and gas field exploration, oil and gas distribution, oil field drilling, papermaking chemical agents, and inorganic chemicals, as well as materials that are used for human and animal antibiotics. The company is based in Shouguang, the People’s Republic of China.
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