AdvanSix (NASDAQ: ASIX) and Sensient Technologies Corporation (NYSE:SXT) are both basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, risk and valuation.
This table compares AdvanSix and Sensient Technologies Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Sensient Technologies Corporation||8.16%||17.15%||8.75%|
Earnings and Valuation
This table compares AdvanSix and Sensient Technologies Corporation’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|AdvanSix||$1.32 billion||1.02||$135.96 million||N/A||N/A|
|Sensient Technologies Corporation||$1.36 billion||2.55||$247.07 million||$2.48||31.90|
Sensient Technologies Corporation has higher revenue and earnings than AdvanSix.
This is a breakdown of recent ratings and recommmendations for AdvanSix and Sensient Technologies Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Sensient Technologies Corporation||0||0||2||0||3.00|
AdvanSix currently has a consensus target price of $46.00, suggesting a potential upside of 3.88%. Sensient Technologies Corporation has a consensus target price of $89.15, suggesting a potential upside of 12.69%. Given Sensient Technologies Corporation’s higher possible upside, analysts clearly believe Sensient Technologies Corporation is more favorable than AdvanSix.
Insider & Institutional Ownership
89.0% of Sensient Technologies Corporation shares are owned by institutional investors. 1.0% of Sensient Technologies Corporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Sensient Technologies Corporation pays an annual dividend of $1.20 per share and has a dividend yield of 1.5%. AdvanSix does not pay a dividend. Sensient Technologies Corporation pays out 48.4% of its earnings in the form of a dividend. AdvanSix has increased its dividend for 5 consecutive years.
Sensient Technologies Corporation beats AdvanSix on 9 of the 14 factors compared between the two stocks.
AdvanSix Inc. is an integrated manufacturer of Nylon 6. The Company also sells a variety of other products, all of which are produced as part of the Nylon 6 resin manufacturing process primarily, including caprolactam, ammonium sulfate fertilizers and other chemical intermediates. The Company operates primarily through its integrated manufacturing sites located in Frankford, Pennsylvania, Hopewell, Virginia, and Chesterfield, Virginia. The Company offers ammonium sulfate, which is used by customers as a nitrogen-based fertilizer. It produces ammonium sulfate fertilizer as part of its manufacturing process. The Company manufactures ammonium sulfate fertilizers including Sulf-N and Sulf-N 26. The Company provides AdvanSix Aegis nylon resins and Aegis barrier nylon resins. Its nylon resins are a preferred choice in food, liquid, and consumer packaging along with mono/multifilament products, carpet fibers, automotive compounding and more. It offers Capran biaxially oriented nylon films.
About Sensient Technologies Corporation
Sensient Technologies Corporation is a manufacturer and marketer of colors, flavors and fragrances. The Company uses technologies at facilities around the world to develop specialty food and beverage systems, cosmetic and pharmaceutical systems, specialty inks and colors, and other specialty and fine chemicals. The Company’s three segments include the Flavors & Fragrances Group and the Color Group, which are managed on a product-and-services basis, and the Asia Pacific Group, which is managed on a geographic basis. The Company’s principal products include flavors, flavor enhancers and bionutrients; fragrances, aroma chemicals and essential oils; natural ingredients, including dehydrated vegetables and other food ingredients; natural and synthetic food and beverage colors; cosmetic colors and ingredients and pharmaceutical excipients and ingredients, and technical colors, specialty inks and colors, and specialty dyes and pigments.
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