Comparing Avient (NYSE:AVNT) & Johnson Matthey (OTCMKTS:JMPLY)

Avient (NYSE:AVNT) and Johnson Matthey (OTCMKTS:JMPLY) are both mid-cap basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, dividends, profitability, institutional ownership, risk, analyst recommendations and valuation.

Profitability

This table compares Avient and Johnson Matthey’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Avient	4.81%	11.11%	4.40%
Johnson Matthey	N/A	N/A	N/A

Dividends

Avient pays an annual dividend of $1.10 per share and has a dividend yield of 3.2%. Johnson Matthey pays an annual dividend of $1.16 per share and has a dividend yield of 2.0%. Avient pays out 64.0% of its earnings in the form of a dividend. Avient has increased its dividend for 1 consecutive years. Avient is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

95.5% of Avient shares are owned by institutional investors. 0.9% of Avient shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Avient and Johnson Matthey”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Avient	$3.26 billion	0.96	$81.90 million	$1.72	19.87
Johnson Matthey	$16.85 billion	0.29	-$128.69 million	N/A	N/A

Avient has higher earnings, but lower revenue than Johnson Matthey.

Volatility and Risk

Avient has a beta of 1.28, indicating that its stock price is 28% more volatile than the S&P 500. Comparatively, Johnson Matthey has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Avient and Johnson Matthey, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Avient	0	4	2	0	2.33
Johnson Matthey	1	2	1	2	2.67

Avient presently has a consensus target price of $46.40, suggesting a potential upside of 35.80%. Given Avient’s higher probable upside, analysts plainly believe Avient is more favorable than Johnson Matthey.

Summary

Avient beats Johnson Matthey on 12 of the 16 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 Johnson Matthey

Johnson Matthey is a global leader in science that enables a cleaner and healthier world. With over 200 years of sustained commitment to innovation and technological breakthroughs, they improve the function, performance and safety of their customers’ products. Their science has a global impact in areas such as low emission transport, pharmaceuticals, chemical processing and making the most efficient use of the planet’s natural resources. Today more than 13,000 Johnson Matthey professionals collaborate with their network of customers and partners to make a real difference to the world around us.