Critical Analysis: Tantech (NASDAQ:TANH) vs. Avient (NYSE:AVNT)

Tantech (NASDAQ:TANH) and Avient (NYSE:AVNT) are both basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, risk, profitability, dividends, valuation, analyst recommendations and institutional ownership.

Analyst Ratings

This is a summary of recent recommendations for Tantech and Avient, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tantech	1	0	0	0	1.00
Avient	0	4	3	1	2.63

Avient has a consensus price target of $43.60, suggesting a potential upside of 35.91%. Given Avient’s stronger consensus rating and higher probable upside, analysts clearly believe Avient is more favorable than Tantech.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tantech	N/A	N/A	N/A
Avient	3.65%	10.57%	4.17%

Institutional and Insider Ownership

6.0% of Tantech shares are owned by institutional investors. Comparatively, 95.5% of Avient shares are owned by institutional investors. 3.8% of Tantech shares are owned by company insiders. Comparatively, 0.9% of Avient shares are owned 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.

Earnings and Valuation

This table compares Tantech and Avient”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tantech	$42.94 million	0.00	-$3.24 million	N/A	N/A
Avient	$3.25 billion	0.90	$169.50 million	$1.28	25.06

Avient has higher revenue and earnings than Tantech.

Risk and Volatility

Tantech has a beta of 0.36, indicating that its stock price is 64% less volatile than the S&P 500. Comparatively, Avient has a beta of 1.41, indicating that its stock price is 41% more volatile than the S&P 500.

Summary

Avient beats Tantech on 12 of the 13 factors compared between the two stocks.

About Tantech

Tantech Holdings Ltd, together with its subsidiaries, develops and manufactures bamboo-based charcoal products for industrial energy, household cooking, heating, purification, agricultural, and cleaning applications in the People's Republic of China and internationally. The company operates in three segments: Consumer Products, Electric Vehicles, and Biodegradable Packaging. It provides pressed and formed charcoal briquettes for use in grills, incense burners, and other applications under the Algold brand. The company also offers Charcoal Doctor branded products, such as air purifiers and humidifiers, automotive accessories for air purification, underfloor humidity control products, pillows and mattresses, wardrobe deodorizers, mouse pads and wrist mats, refrigerator deodorants, charcoal toilet cleaner disks, liquid charcoal cleaners, shoe insoles, and decorative charcoal gifts. In addition, it provides bamboo vinegar, a liquid byproduct for use in disinfectants, detergents, lotions, specialized soaps, toilet cleaners, and fertilizers, as well as in various agricultural applications; and trades in charcoal products. Further, the company develops and sells electric buses, electric logistics cars, and specialty electric vehicles, such as brushless cleaning cars, electric cleaning cars, special emergency vehicles, and funeral cars; and solar cells, lithium-ion batteries, auto parts, and electric control systems. It is also involved in the biodegradable packaging and supply chain businesses, as well as provides commercial factoring services. The company was founded in 1998 and is headquartered in Lishui, the People's Republic of China.

About Avient

Avient Corporation operates as a formulator of material solutions in the United States, Canada, Mexico, Europe, South America, and Asia. It operates in two segments, Color, Additives and Inks; and Specialty Engineered Materials. The Color, Additives and Inks segment offers custom color and additive concentrates in solid and liquid form for thermoplastics, dispersions for thermosets, and specialty inks; custom-formulated liquid system, such as polyester, vinyl, natural rubber and latex, polyurethane, and silicone; and proprietary inks. Its products are used in medical and pharmaceutical devices, food packaging, personal care and cosmetics, transportation, building products, wire and cable, recreational and athletic apparel, construction and filtration, outdoor furniture, healthcare, textiles and appliances, and industrial markets. The Specialty Engineered Materials segment provides specialty polymer formulations, services, and solutions for designers, assemblers, and processors of thermoplastic materials. It 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 1885 and is headquartered in Avon Lake, Ohio.