Comparing AdvanSix (NYSE:ASIX) & Avient (NYSE:AVNT)

AdvanSix (NYSE:ASIX) and Avient (NYSE:AVNT) are both basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, earnings, analyst recommendations, valuation, dividends and institutional ownership.

Valuation & Earnings

This table compares AdvanSix and Avient’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AdvanSix $1.30 billion 0.28 $41.35 million $1.43 8.93
Avient $2.86 billion 0.87 $588.60 million $1.69 16.12

Avient has higher revenue and earnings than AdvanSix. AdvanSix is trading at a lower price-to-earnings ratio than Avient, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

AdvanSix has a beta of 2, meaning that its share price is 100% more volatile than the S&P 500. Comparatively, Avient has a beta of 1.81, meaning that its share price is 81% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for AdvanSix and Avient, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AdvanSix 0 1 1 0 2.50
Avient 0 0 0 0 N/A

AdvanSix currently has a consensus target price of $20.00, suggesting a potential upside of 56.62%. Given AdvanSix’s higher possible upside, research analysts clearly believe AdvanSix is more favorable than Avient.

Profitability

This table compares AdvanSix and Avient’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AdvanSix 2.20% 6.27% 2.07%
Avient 21.01% 10.78% 3.57%

Insider and Institutional Ownership

86.6% of AdvanSix shares are owned by institutional investors. Comparatively, 87.7% of Avient shares are owned by institutional investors. 3.3% of AdvanSix shares are owned by company insiders. Comparatively, 1.0% of Avient shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Avient beats AdvanSix on 9 of the 13 factors compared between the two stocks.

AdvanSix Company Profile

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

Avient Company Profile

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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