AdvanSix (ASIX) and Its Rivals Head-To-Head Comparison

AdvanSix (NYSE:ASIX) is one of 295 public companies in the “Chemicals” industry, but how does it compare to its peers? We will compare AdvanSix to similar companies based on the strength of its earnings, risk, valuation, analyst recommendations, profitability, institutional ownership and dividends.

Institutional and Insider Ownership

86.4% of AdvanSix shares are held by institutional investors. Comparatively, 48.0% of shares of all “Chemicals” companies are held by institutional investors. 5.0% of AdvanSix shares are held by company insiders. Comparatively, 13.9% of shares of all “Chemicals” companies 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.

Volatility & Risk

AdvanSix has a beta of 1.27, indicating that its stock price is 27% more volatile than the S&P 500. Comparatively, AdvanSix’s peers have a beta of 0.93, indicating that their average stock price is 7% less volatile than the S&P 500.

Dividends

AdvanSix pays an annual dividend of $0.64 per share and has a dividend yield of 4.1%. AdvanSix pays out -76.2% of its earnings in the form of a dividend. As a group, “Chemicals” companies pay a dividend yield of 3.1% and pay out 103.5% of their earnings in the form of a dividend. AdvanSix has increased its dividend for 2 consecutive years. AdvanSix is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a summary of recent ratings and target prices for AdvanSix and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AdvanSix	1	2	0	0	1.67
AdvanSix Competitors	3250	12221	14141	519	2.40

AdvanSix presently has a consensus price target of $20.50, indicating a potential upside of 31.28%. As a group, “Chemicals” companies have a potential upside of 8.06%. Given AdvanSix’s higher possible upside, equities analysts clearly believe AdvanSix is more favorable than its peers.

Valuation and Earnings

This table compares AdvanSix and its peers revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
AdvanSix	$1.52 billion	$49.29 million	-18.59
AdvanSix Competitors	$6.36 billion	$222.31 million	10.00

AdvanSix’s peers have higher revenue and earnings than AdvanSix. AdvanSix is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares AdvanSix and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AdvanSix	-1.40%	-2.29%	-1.08%
AdvanSix Competitors	-59.67%	0.26%	-1.43%

About AdvanSix

AdvanSix Inc. engages in the manufacture and sale of polymer resins in the United States and internationally. It offers Nylon 6, a polymer resin, which is a synthetic material used to produce fibers, filaments, engineered plastics, and films. The company also provides caprolactam to manufacture polymer resins; ammonium sulfate fertilizers to distributors, farm cooperatives, and retailers; and acetone that are used in the production of adhesives, paints, coatings, solvents, herbicides, and engineered plastic resins, as well as other intermediate chemicals, including phenol, monoisopropylamine, dipropylamine, monoallylamine, alpha-methylstyrene, cyclohexanone, methyl ethyl ketoxime, acetaldehyde oxime, 2-pentanone oxime, cyclohexanol, sulfuric acid, ammonia, and carbon dioxide. It offers its products under the Aegis, Capran, Sulf-N, Nadone, Naxol, and EZ-Blox brands. The company sells its products directly, as well as through distributors. AdvanSix Inc. was incorporated in 2016 and is headquartered in Parsippany, New Jersey.