Contrasting Sensient Technologies (NYSE:SXT) & Orbia Advance (OTCMKTS:MXCHY)

Orbia Advance (OTCMKTS:MXCHY) and Sensient Technologies (NYSE:SXT) are both basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.

Insider & Institutional Ownership

90.9% of Sensient Technologies shares are owned by institutional investors. 1.2% of Sensient Technologies shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Orbia Advance and Sensient Technologies”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Orbia Advance	$7.51 billion	0.23	$145.00 million	N/A	N/A
Sensient Technologies	$1.60 billion	2.60	$124.67 million	$3.27	29.81

Orbia Advance has higher revenue and earnings than Sensient Technologies.

Volatility and Risk

Orbia Advance has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500. Comparatively, Sensient Technologies has a beta of 0.61, suggesting that its share price is 39% less volatile than the S&P 500.

Dividends

Orbia Advance pays an annual dividend of $0.03 per share and has a dividend yield of 1.7%. Sensient Technologies pays an annual dividend of $1.64 per share and has a dividend yield of 1.7%. Sensient Technologies pays out 50.2% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Orbia Advance and Sensient Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Orbia Advance	0	0	2	0	3.00
Sensient Technologies	0	2	1	0	2.33

Sensient Technologies has a consensus price target of $110.00, suggesting a potential upside of 12.83%. Given Sensient Technologies’ higher possible upside, analysts plainly believe Sensient Technologies is more favorable than Orbia Advance.

Profitability

This table compares Orbia Advance and Sensient Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Orbia Advance	2.21%	7.87%	2.14%
Sensient Technologies	8.56%	12.56%	6.60%

About Orbia Advance

Orbia Advance Corporation, S.A.B. de C.V. provides products and solutions for precision agriculture, building and infrastructure, fluorinated, polymer, and connectivity sectors worldwide. The company offers irrigation systems, agricultural and greenhouse projects, digital farming technologies, and related services; and connectivity solutions, including conduits, cable-in conduit, and other HDPE products and solutions. It also provides water delivering solutions for drinking water supply, sanitation, and urban water resilience; fluorine and downstream products, comprising fluorspar mine and produces intermediates, refrigerants, and propellants for used in automotive, infrastructure, semiconductor, health, medicine, climate control, food cold chain, energy storage, computing, and telecommunications applications; and general and specialty resins, PVC, and compounds and additives for stabilizers and plasticizers, as well as compounds formulated from polyolefin, thermoplastic polyurethane, and thermoplastic elastomer polymers for various applications. The company was formerly known as Mexichem, S.A.B. de C.V. and changed its name to Orbia Advance Corporation, S.A.B. de C.V. in August 2019. Orbia Advance Corporation, S.A.B. de C.V. was founded in 1953 and is headquartered in Mexico City, Mexico.

About Sensient Technologies

Sensient Technologies Corporation, together with its subsidiaries, develops, manufactures, and markets colors, flavors, and other specialty ingredients in North America, Europe, Asia, Australia, South America, and Africa. The company offers flavor-delivery systems, and compounded and blended products; ingredient products, such as essential oils, natural and synthetic flavors, and natural extracts; and chili powder, paprika, and chili pepper, as well as dehydrated vegetables comprising parsley, celery, and spinach to the food, beverage, and personal care industries. It also provides natural and synthetic color systems for use in foods, beverages, pharmaceuticals, and nutraceuticals; colors and other ingredients for personal care, such as active ingredients, solubilizers, and surface treated pigments; pharmaceutical and nutraceutical excipients, including colors, flavors, coatings, and nutraceutical ingredients; and technical colors for industrial applications under the Sensient Food Colors, Sensient Pharmaceutical Coating Systems, Sensient Cosmetic Technologies, and Sensient Specialty Markets trade names. Sensient Technologies Corporation was incorporated in 1882 and is headquartered in Milwaukee, Wisconsin.