RPM International (NYSE:RPM – Get Free Report) and American Vanguard (NYSE:AVD – Get Free Report) are both basic materials companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, risk, earnings, analyst recommendations and profitability.
Volatility & Risk
RPM International has a beta of 1.04, suggesting that its stock price is 4% more volatile than the S&P 500. Comparatively, American Vanguard has a beta of 1.43, suggesting that its stock price is 43% more volatile than the S&P 500.
Earnings and Valuation
This table compares RPM International and American Vanguard”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| RPM International | $7.37 billion | 1.81 | $688.69 million | $5.19 | 20.12 |
| American Vanguard | $515.11 million | 0.14 | -$49.88 million | ($1.59) | -1.57 |
RPM International has higher revenue and earnings than American Vanguard. American Vanguard is trading at a lower price-to-earnings ratio than RPM International, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for RPM International and American Vanguard, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| RPM International | 0 | 4 | 11 | 0 | 2.73 |
| American Vanguard | 1 | 0 | 1 | 0 | 2.00 |
RPM International currently has a consensus price target of $127.42, suggesting a potential upside of 22.02%. American Vanguard has a consensus price target of $12.00, suggesting a potential upside of 379.23%. Given American Vanguard’s higher probable upside, analysts clearly believe American Vanguard is more favorable than RPM International.
Profitability
This table compares RPM International and American Vanguard’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| RPM International | 8.63% | 22.55% | 8.75% |
| American Vanguard | -8.71% | -4.13% | -1.34% |
Institutional and Insider Ownership
81.0% of RPM International shares are owned by institutional investors. Comparatively, 79.0% of American Vanguard shares are owned by institutional investors. 1.6% of RPM International shares are owned by insiders. Comparatively, 5.6% of American Vanguard shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Summary
RPM International beats American Vanguard on 11 of the 14 factors compared between the two stocks.
About RPM International
RPM International Inc. manufactures and sells specialty chemicals for the industrial, specialty, and consumer markets worldwide. It offers waterproofing, coating, and traditional roofing systems; sealants, air barriers, tapes, and foams; residential home weatherization systems; roofing and building maintenance services; sealing and bonding, subfloor preparation, flooring, and glazing solutions; resin flooring systems, polyurethane, MMA waterproof, epoxy floor paint and coatings, concrete repair, and protection products; fire stopping and intumescent steel coating, and manufacturing industry solutions; rolled asphalt roofing materials and chemical admixtures; concrete and masonry admixtures, concrete fibers, curing and sealing compounds, structural grouts and mortars, epoxy adhesives, injection resins, polyurethane foams, floor hardeners and toppings, joint fillers, industrial and architectural coatings, decorative color/stains/stamps, and restoration materials; insulated building cladding materials; and concrete form wall systems. It also provides polymer flooring systems; fiberglass reinforced plastic gratings and shapes; corrosion-control coating, containment and railcar lining, fire and sound proofing, and heat and cryogenic insulation products; specialty construction products; amine curing agents, reactive diluents, and epoxy resins; fluorescent colorants and pigments; shellac-based-specialty and marine coatings; fire and water damage restoration, carpet cleaning, and disinfecting products; fuel additives; wood treatments, coatings, and touch-up products; and nail enamels, polishes, and coating components. In addition, it offers solutions for the paint contractors and DIYers, concrete restoration and flooring, metallic and faux finish coatings, cleaners, and hobby paints and cements; and caulks, adhesives, insulating foams, and patches, as well as spackling, glazing, and repair products. The company was incorporated in 1947 and is headquartered in Medina, Ohio.
About American Vanguard
American Vanguard Corporation, through its subsidiaries, develops, manufactures, and markets specialty chemicals for agricultural, commercial, and consumer uses in the United States and internationally. It manufactures and formulates chemicals, including insecticides, fungicides, herbicides, soil health, plant nutrition, molluscicides, growth regulators, soil fumigants, and biorationals in liquid, powder, and granular forms for crops, turf and ornamental plants, and human and animal health protection. The company also markets, sells, and distributes end-use chemical and biological products for crop applications; and distributes chemicals for turf and ornamental markets. It distributes its products through national distribution companies, and buying groups or co-operatives; and through sales offices, sales force executives, sales agents, and wholly owned distributors. American Vanguard Corporation was incorporated in 1969 and is headquartered in Newport Beach, California.
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