Critical Comparison: AgroFresh Solutions (AGFS) versus KBL MERGER CORP/SH (KBLM)

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AgroFresh Solutions (NASDAQ:AGFS) and KBL MERGER CORP/SH (NASDAQ:KBLM) are both small-cap basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, valuation, dividends, earnings, risk, analyst recommendations and institutional ownership.

Insider & Institutional Ownership

82.2% of AgroFresh Solutions shares are held by institutional investors. Comparatively, 57.9% of KBL MERGER CORP/SH shares are held by institutional investors. 1.8% of AgroFresh Solutions shares are held by insiders. Comparatively, 21.9% of KBL MERGER CORP/SH shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares AgroFresh Solutions and KBL MERGER CORP/SH’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AgroFresh Solutions $164.03 million 1.26 $23.47 million N/A N/A
KBL MERGER CORP/SH N/A N/A $120,000.00 N/A N/A

AgroFresh Solutions has higher revenue and earnings than KBL MERGER CORP/SH.

Volatility and Risk

AgroFresh Solutions has a beta of 0.78, indicating that its stock price is 22% less volatile than the S&P 500. Comparatively, KBL MERGER CORP/SH has a beta of -0.02, indicating that its stock price is 102% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for AgroFresh Solutions and KBL MERGER CORP/SH, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AgroFresh Solutions 0 1 1 0 2.50
KBL MERGER CORP/SH 0 0 0 0 N/A

AgroFresh Solutions currently has a consensus target price of $5.95, suggesting a potential upside of 46.91%. Given AgroFresh Solutions’ higher probable upside, research analysts clearly believe AgroFresh Solutions is more favorable than KBL MERGER CORP/SH.

Profitability

This table compares AgroFresh Solutions and KBL MERGER CORP/SH’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AgroFresh Solutions -4.50% -8.17% -3.40%
KBL MERGER CORP/SH N/A 15.15% 0.64%

Summary

AgroFresh Solutions beats KBL MERGER CORP/SH on 6 of the 10 factors compared between the two stocks.

About AgroFresh Solutions

AgroFresh Solutions, Inc. provides data-driven specialty solutions worldwide. The company uses 1-Methylcyclopropene technology, an ethylene action inhibitor to maintain freshness and extend the shelf life of various fresh produce. Its solutions enable growers and packers of fresh produce to preserve and enhance the freshness, quality, and value of fresh produce, including apples, pears, kiwifruit, avocados, and bananas, as well as flowers. The company's flagship product is the SmartFresh Quality System that regulates the post-harvest ripening effects of ethylene to preserve the texture, firmness, taste, and appearance of produce during storage, transportation, and retail display. It also provides Harvista technology for use in pre-harvest management of pome fruit, such as apples and pears. In addition, the company is developing AdvanStore technology for monitoring fresh fruits while in storage; RipeLock Quality System, a proprietary technology that extends the shelf life of bananas; and LandSpring, a proprietary technology that minimizes stress induced ethylene effects in vegetable seedling transplants allowing for post-transplant vigor. The company was formerly known as Boulevard Acquisition Corp. and changed its name to AgroFresh Solutions, Inc. in July 2015. AgroFresh Solutions, Inc. is headquartered in Philadelphia, Pennsylvania.

About KBL MERGER CORP/SH

KBL Merger Corp. IV is a principle investment firm founded in 2016 and is based in Newark, Delaware.

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