Critical Analysis: American Vanguard (NYSE:AVD) and Origin Materials (NASDAQ:ORGN)

Origin Materials (NASDAQ:ORGN) and American Vanguard (NYSE:AVD) are both small-cap materials companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, risk, dividends, institutional ownership, profitability and analyst recommendations.

Valuation and Earnings

This table compares Origin Materials 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
Origin Materials	$13.97 million	0.37	-$249.70 million	($47.83)	-0.02
American Vanguard	$515.11 million	0.06	-$49.88 million	($1.90)	-0.54

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

Analyst Ratings

This is a breakdown of current recommendations and price targets for Origin Materials and American Vanguard, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Origin Materials	1	0	0	0	1.00
American Vanguard	1	0	0	0	1.00

Profitability

This table compares Origin Materials and American Vanguard’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Origin Materials	-1,742.04%	-120.66%	-99.50%
American Vanguard	-10.70%	-9.05%	-2.78%

Risk and Volatility

Origin Materials has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500. Comparatively, American Vanguard has a beta of 1.49, suggesting that its stock price is 49% more volatile than the S&P 500.

Institutional and Insider Ownership

29.9% of Origin Materials shares are held by institutional investors. Comparatively, 79.0% of American Vanguard shares are held by institutional investors. 2.8% of Origin Materials shares are held by insiders. Comparatively, 5.6% of American Vanguard shares are held by 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.

Summary

American Vanguard beats Origin Materials on 9 of the 11 factors compared between the two stocks.

About Origin Materials

Origin Materials, Inc., together with its subsidiaries, operates as a carbon-negative materials company. The company develops a proprietary biomass conversion platform to convert biomass, or plant-based carbon into building block chemicals chloromethylfurfural and hydrothermal carbon, as well as other oils and extractives and other co-products. Origin Materials, Inc. is headquartered in West Sacramento, California.

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.