Comparing ASP Isotopes (NASDAQ:ASPI) & Valhi (NYSE:VHI)

Valhi (NYSE:VHI) and ASP Isotopes (NASDAQ:ASPI) are both small-cap basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, earnings, profitability, analyst recommendations, risk, institutional ownership and valuation.

Earnings & Valuation

This table compares Valhi and ASP Isotopes”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Valhi	$2.10 billion	0.20	$108.00 million	$0.64	23.32
ASP Isotopes	$4.14 million	146.18	-$32.33 million	($1.30)	-4.20

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

Insider & Institutional Ownership

3.8% of Valhi shares are owned by institutional investors. Comparatively, 16.8% of ASP Isotopes shares are owned by institutional investors. 0.2% of Valhi shares are owned by insiders. Comparatively, 14.4% of ASP Isotopes shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Valhi and ASP Isotopes, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Valhi	2	0	0	0	1.00
ASP Isotopes	1	0	2	0	2.33

Valhi currently has a consensus target price of $12.00, suggesting a potential downside of 19.60%. ASP Isotopes has a consensus target price of $13.00, suggesting a potential upside of 138.10%. Given ASP Isotopes’ stronger consensus rating and higher possible upside, analysts clearly believe ASP Isotopes is more favorable than Valhi.

Risk and Volatility

Valhi has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500. Comparatively, ASP Isotopes has a beta of 3.47, meaning that its share price is 247% more volatile than the S&P 500.

Profitability

This table compares Valhi and ASP Isotopes’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Valhi	0.89%	2.22%	1.13%
ASP Isotopes	-1,259.12%	-190.44%	-77.22%

About Valhi

Valhi, Inc. engages in the chemicals, component products, and real estate management and development businesses in Europe, North America, the Asia Pacific, and internationally. The company’s Chemicals segment produces and markets titanium dioxide pigments (TiO2), which are white inorganic pigments used in various applications by paint, plastics, decorative laminate, and paper manufacturers. It offers TiO2 under the KRONOS name through agents and distributors. The company’s Component Products segment manufactures mechanical and electrical cabinet locks, and other locking mechanisms for use in ignition systems, mailboxes, file cabinets, desk drawers, tool storage cabinets, vending and cash containment machines, integrated inventory and access control secured narcotics boxes, medical cabinetry security, electronic circuit panels, storage compartments, and gas station security applications. It also provides stainless steel exhaust components, gauges, throttle controls, wake enhancement systems, trim tabs, and related hardware and accessories primarily for performance and ski/wakeboard boats. The company’s Real Estate Management and Development segment offers utility services to industrial and municipal customers; owns real properties; and develops land holdings for commercial, industrial, and residential purposes. It also holds marketable securities and other investments. The company was incorporated in 1932 and is based in Dallas, Texas. Valhi, Inc. is a subsidiary of Dixie Rice Agricultural L.L.C.

About ASP Isotopes

ASP Isotopes Inc., a development stage advanced materials company, focuses on the production, distribution, marketing, and sale of isotopes. It engages in the production and commercialization of Molybdenum-100, a non-radioactive isotope for the medical industry; Carbon-14; and Silicon-28. The company is also developing Quantum Enrichment technology to produce Ytterbium-176, Nickel-64, Lithium 6, Lithium7, and Uranium-235. ASP Isotopes Inc. was incorporated in 2021 and is headquartered in Washington, District Of Columbia.