Orbia Advance (OTCMKTS:MXCHF) vs. Nutrien (NYSE:NTR) Critical Survey

Nutrien (NYSE:NTR) and Orbia Advance (OTCMKTS:MXCHF) are both materials companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, risk, profitability and valuation.

Institutional and Insider Ownership

63.1% of Nutrien shares are owned by institutional investors. Comparatively, 14.5% of Orbia Advance shares are owned by institutional investors. 3.1% of Nutrien shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Nutrien and Orbia Advance, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nutrien	1	3	17	0	2.76
Orbia Advance	0	0	0	0	0.00

Nutrien currently has a consensus target price of $81.58, indicating a potential upside of 9.16%. Given Nutrien’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Nutrien is more favorable than Orbia Advance.

Earnings & Valuation

This table compares Nutrien and Orbia Advance”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nutrien	$28.20 billion	1.27	$2.27 billion	$4.94	15.13
Orbia Advance	N/A	N/A	N/A	$0.08	17.52

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

Profitability

This table compares Nutrien and Orbia Advance’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nutrien	8.44%	8.88%	4.27%
Orbia Advance	N/A	N/A	N/A

Dividends

Nutrien pays an annual dividend of $2.20 per share and has a dividend yield of 2.9%. Orbia Advance pays an annual dividend of $0.05 per share and has a dividend yield of 3.4%. Nutrien pays out 44.5% of its earnings in the form of a dividend. Orbia Advance pays out 59.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Nutrien has increased its dividend for 7 consecutive years.

Summary

Nutrien beats Orbia Advance on 12 of the 14 factors compared between the two stocks.

About Nutrien

Nutrien Ltd. provides crop inputs and services. The company operates through four segments: Retail, Potash, Nitrogen, and Phosphate. The Retail segment distributes crop nutrients, crop protection products, seeds, and merchandise products. The Potash segment provides granular and standard potash products. The Nitrogen segment offers ammonia, urea, environmentally smart nitrogen, nitrogen solutions, nitrates, and sulfates. The Phosphate segment provides solid fertilizer, liquid fertilizer, and industrial and feed products. In addition, it provides services directly to growers through a network of farm centers in North America, South America, and Australia. The company is headquartered in Saskatoon, Canada.

About Orbia Advance

Orbia Advance Corporation, S.A.B. de C.V. provides products and solutions for precision agriculture, building and infrastructure, fluorinated, polymer, and connectivity sectors worldwide. The company offers irrigation systems, agricultural and greenhouse projects, digital farming technologies, and related services; and connectivity solutions, including conduits, cable-in conduit, and other HDPE products and solutions. It also provides water delivering solutions for drinking water supply, sanitation, and urban water resilience; fluorine and downstream products, comprising fluorspar mine and produces intermediates, refrigerants, and propellants for used in automotive, infrastructure, semiconductor, health, medicine, climate control, food cold chain, energy storage, computing, and telecommunications applications; and general and specialty resins, PVC, and compounds and additives for stabilizers and plasticizers, as well as compounds formulated from polyolefin, thermoplastic polyurethane, and thermoplastic elastomer polymers for various applications. The company was formerly known as Mexichem, S.A.B. de C.V. and changed its name to Orbia Advance Corporation, S.A.B. de C.V. in August 2019. Orbia Advance Corporation, S.A.B. de C.V. was founded in 1953 and is headquartered in Mexico City, Mexico.