A. Schulman (NASDAQ: SHLM) and AdvanSix (NYSE:ASIX) are both small-cap basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.
Risk & Volatility
A. Schulman has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500. Comparatively, AdvanSix has a beta of 1.43, suggesting that its stock price is 43% more volatile than the S&P 500.
87.8% of A. Schulman shares are held by institutional investors. Comparatively, 78.0% of AdvanSix shares are held by institutional investors. 4.1% of A. Schulman shares are held by company insiders. Comparatively, 2.7% of AdvanSix shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
This is a breakdown of current recommendations and price targets for A. Schulman and AdvanSix, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
A. Schulman currently has a consensus target price of $37.00, indicating a potential downside of 13.75%. AdvanSix has a consensus target price of $41.00, indicating a potential upside of 9.30%. Given AdvanSix’s stronger consensus rating and higher probable upside, analysts clearly believe AdvanSix is more favorable than A. Schulman.
A. Schulman pays an annual dividend of $0.82 per share and has a dividend yield of 1.9%. AdvanSix does not pay a dividend. A. Schulman pays out 46.9% of its earnings in the form of a dividend.
Earnings and Valuation
This table compares A. Schulman and AdvanSix’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|A. Schulman||$2.46 billion||0.51||$33.02 million||$1.75||24.51|
|AdvanSix||$1.48 billion||0.78||$146.69 million||$3.00||12.50|
AdvanSix has lower revenue, but higher earnings than A. Schulman. AdvanSix is trading at a lower price-to-earnings ratio than A. Schulman, indicating that it is currently the more affordable of the two stocks.
This table compares A. Schulman and AdvanSix’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
AdvanSix beats A. Schulman on 11 of the 16 factors compared between the two stocks.
About A. Schulman
A. Schulman, Inc. manufactures and supplies plastic compounds and resins. It offers custom performance colors, including standard and customized colors, organic and inorganic pigments, high chroma colors in translucent or opaque formats, and special effects. The company also provides engineered composites, such as bulk molding compounds, sheet molding compounds, and thick molding compounds, as well as high performance engineered structural composite solutions for original equipment manufacturers and custom molders. In addition, it offers concentrates to enhance the performance, appearance, and processing of plastics for intended applications; additive solutions; and application solutions that minimize the use of plastics, or incorporate the use of recycled plastics or renewable-based polymers, as well as provides films for agriculture, packaging, and personal care and hygiene applications. Further, the company offers polymer solutions, which provide structural integrity; multi-component blends that include polyolefins, nylons, polyesters and elastomers, and others; and formulating know-how with fiber reinforcements, such as glass and carbon, nano-reinforcements, flame retardants, impact modifiers, and UV stabilization. Additionally, it offers size reduction services; specialty powders for rotational molding, oil and gas additives, and sports and leisure products; jet milling services used for products requiring fine particle size; and cryogenic milling services. The company also buys, repackages, and resells polymers for processing types, such as injection molding, blow molding, thermoforming, and film and sheet extruding. It serves packaging, mobility, building and construction, electronics and electrical, agriculture, personal care and hygiene, custom services, sports, home, and leisure markets in Europe, the Middle East, Africa, the United States, Canada, Latin America, and the Asia Pacific. The company was founded in 1928 and is headquartered in Fairlawn, Ohio.
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.
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