Analyzing Avient (AVNT) and Its Rivals

Avient (NYSE: AVNT) is one of 16 publicly-traded companies in the “Plastics materials & resins” industry, but how does it weigh in compared to its rivals? We will compare Avient to similar businesses based on the strength of its risk, earnings, analyst recommendations, profitability, valuation, dividends and institutional ownership.

Profitability

This table compares Avient and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Avient 21.01% 10.78% 3.57%
Avient Competitors 5.25% 7.88% 3.30%

Earnings & Valuation

This table compares Avient and its rivals revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Avient $2.86 billion $588.60 million 16.12
Avient Competitors $14.88 billion $485.51 million 11.93

Avient’s rivals have higher revenue, but lower earnings than Avient. Avient is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Dividends

Avient pays an annual dividend of $0.81 per share and has a dividend yield of 3.0%. Avient pays out 47.9% of its earnings in the form of a dividend. As a group, “Plastics materials & resins” companies pay a dividend yield of 3.2% and pay out 39.5% of their earnings in the form of a dividend. Avient lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Avient and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Avient 0 0 0 0 N/A
Avient Competitors 206 979 1263 44 2.46

As a group, “Plastics materials & resins” companies have a potential upside of 4.79%. Given Avient’s rivals higher possible upside, analysts plainly believe Avient has less favorable growth aspects than its rivals.

Risk & Volatility

Avient has a beta of 1.81, indicating that its stock price is 81% more volatile than the S&P 500. Comparatively, Avient’s rivals have a beta of 1.73, indicating that their average stock price is 73% more volatile than the S&P 500.

Institutional & Insider Ownership

87.7% of Avient shares are owned by institutional investors. Comparatively, 79.1% of shares of all “Plastics materials & resins” companies are owned by institutional investors. 1.0% of Avient shares are owned by company insiders. Comparatively, 1.5% of shares of all “Plastics materials & resins” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Avient beats its rivals on 7 of the 12 factors compared.

About Avient

Avient Corporation provides specialized polymer materials, services, and solutions in the United States, Canada, Mexico, Europe, South America, and Asia. It operates in three segments: Color, Additives and Inks; Specialty Engineered Materials; and Distribution. The Color, Additives and Inks segment offers specialized color and additive concentrates in solid and liquid form for thermoplastics; dispersions for thermosets; and specialty inks, plastisols, and vinyl slush molding solutions. The Specialty Engineered Materials segment provides specialty polymer formulations, services, and solutions for designers, assemblers, and processors of thermoplastic materials; and long glass and carbon fiber technology, and thermoset and thermoplastic composites. The Distribution segment distributes approximately 4,000 grades of engineering and commodity grade resins to custom injection molders and extruders. The company sells its products through direct sales personnel, distributors, and commissioned sales agents. The company was formerly known as PolyOne Corporation and changed its name to Avient Corporation in June 2020. Avient Corporation was founded in 1927 and is headquartered in Avon Lake, Ohio.

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