AdvanSix (NYSE: ASIX) and Innospec (NASDAQ:IOSP) are both small-cap basic materials companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, risk, dividends, profitability, earnings, valuation and institutional ownership.
This table compares AdvanSix and Innospec’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
78.0% of AdvanSix shares are held by institutional investors. Comparatively, 92.4% of Innospec shares are held by institutional investors. 2.7% of AdvanSix shares are held by company insiders. Comparatively, 2.0% of Innospec shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Innospec pays an annual dividend of $0.78 per share and has a dividend yield of 1.1%. AdvanSix does not pay a dividend. Innospec pays out 31.1% of its earnings in the form of a dividend.
Valuation & Earnings
This table compares AdvanSix and Innospec’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|AdvanSix||$1.48 billion||0.75||$146.69 million||$3.00||12.02|
|Innospec||$1.31 billion||1.31||$61.80 million||$2.51||28.01|
AdvanSix has higher revenue and earnings than Innospec. AdvanSix is trading at a lower price-to-earnings ratio than Innospec, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent ratings for AdvanSix and Innospec, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
AdvanSix currently has a consensus target price of $46.00, suggesting a potential upside of 27.53%. Innospec has a consensus target price of $65.00, suggesting a potential downside of 7.54%. Given AdvanSix’s stronger consensus rating and higher probable upside, analysts plainly believe AdvanSix is more favorable than Innospec.
AdvanSix beats Innospec on 10 of the 14 factors compared between the two stocks.
AdvanSix Company Profile
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.
Innospec Company Profile
Innospec Inc. is a specialty chemicals company engaged in developing, manufacturing, blending, marketing and supplying of specialty chemicals for use as fuel additives and ingredients for personal care, home care, agrochemical, mining and other applications and oilfield chemicals. The Company operates through four business segments: Fuel Specialties, Performance Chemicals, Oilfield Services and Octane Additives. Its Fuel Specialties develops, manufactures, blends, markets and supplies various specialty chemical products that are used as additives for a range of fuels. Its Performance Chemicals provides technology-based solutions. Its Oilfield Services business supplies drilling, completion and production chemicals. Its Octane Additives business manufactures a fuel additive for use in automotive gasoline and provides services in respect of environmental remediation. Its customers include oil and gas exploration and production companies, fuel users, and oil refiners among others.
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