AdvanSix (NYSE: ASIX) and Versum Materials (NYSE:VSM) are both basic materials companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, earnings, risk, dividends, institutional ownership, analyst recommendations and profitability.
This table compares AdvanSix and Versum Materials’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Versum Materials pays an annual dividend of $0.20 per share and has a dividend yield of 0.5%. AdvanSix does not pay a dividend. Versum Materials pays out 11.4% of its earnings in the form of a dividend.
Institutional & Insider Ownership
71.3% of AdvanSix shares are held by institutional investors. Comparatively, 90.3% of Versum Materials shares are held by institutional investors. 2.7% of AdvanSix shares are held by company insiders. Comparatively, 0.6% of Versum Materials shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This is a breakdown of current ratings and recommmendations for AdvanSix and Versum Materials, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
AdvanSix presently has a consensus target price of $46.00, indicating a potential upside of 9.34%. Versum Materials has a consensus target price of $36.63, indicating a potential downside of 3.24%. Given AdvanSix’s stronger consensus rating and higher probable upside, equities research analysts clearly believe AdvanSix is more favorable than Versum Materials.
Earnings & Valuation
This table compares AdvanSix and Versum Materials’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|AdvanSix||$1.19 billion||1.08||$34.14 million||$1.58||26.63|
|Versum Materials||$1.13 billion||3.66||$193.00 million||$1.76||21.51|
Versum Materials has lower revenue, but higher earnings than AdvanSix. Versum Materials is trading at a lower price-to-earnings ratio than AdvanSix, indicating that it is currently the more affordable of the two stocks.
Versum Materials beats AdvanSix on 8 of the 15 factors compared between the two stocks.
AdvanSix Inc. is an integrated manufacturer of Nylon 6. The Company also sells a variety of other products, all of which are produced as part of the Nylon 6 resin manufacturing process primarily, including caprolactam, ammonium sulfate fertilizers and other chemical intermediates. The Company operates primarily through its integrated manufacturing sites located in Frankford, Pennsylvania, Hopewell, Virginia, and Chesterfield, Virginia. The Company offers ammonium sulfate, which is used by customers as a nitrogen-based fertilizer. It produces ammonium sulfate fertilizer as part of its manufacturing process. The Company manufactures ammonium sulfate fertilizers including Sulf-N and Sulf-N 26. The Company provides AdvanSix Aegis nylon resins and Aegis barrier nylon resins. Its nylon resins are a preferred choice in food, liquid, and consumer packaging along with mono/multifilament products, carpet fibers, automotive compounding and more. It offers Capran biaxially oriented nylon films.
About Versum Materials
Versum Materials, Inc. is a provider of solutions to the semiconductor and display industries. The Company is engaged in the development, manufacturing, transportation and handling of specialty materials. Its segments include Materials; Delivery Systems and Services (DS&S), and Corporate. The Materials segment is an integrated provider of specialty materials for the electronics industry, focusing on the integrated circuit and flat-panel display markets. The DS&S segment designs, manufactures, installs, operates, and maintains chemical and gas delivery and distribution systems for specialty gases and chemicals delivered directly to its customers’ manufacturing tools. The Company is engaged in molecular design and synthesis, purification, advanced analytics, formulation development and containers and delivery systems for the handling of high purity materials.
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