AdvanSix (NYSE:ASIX – Get Free Report) and 5E Advanced Materials (NASDAQ:FEAM – Get Free Report) are both small-cap basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, risk, institutional ownership, earnings and analyst recommendations.
Institutional & Insider Ownership
86.4% of AdvanSix shares are held by institutional investors. 5.6% of AdvanSix shares are held by company insiders. Comparatively, 0.5% of 5E Advanced Materials shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares AdvanSix and 5E Advanced Materials”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| AdvanSix | $1.52 billion | 0.37 | $44.15 million | $2.84 | 7.28 |
| 5E Advanced Materials | N/A | N/A | -$62.01 million | ($15.95) | -0.21 |
AdvanSix has higher revenue and earnings than 5E Advanced Materials. 5E Advanced Materials is trading at a lower price-to-earnings ratio than AdvanSix, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
AdvanSix has a beta of 1.64, indicating that its stock price is 64% more volatile than the S&P 500. Comparatively, 5E Advanced Materials has a beta of 1.54, indicating that its stock price is 54% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current ratings and target prices for AdvanSix and 5E Advanced Materials, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| AdvanSix | 0 | 0 | 1 | 0 | 3.00 |
| 5E Advanced Materials | 0 | 0 | 3 | 0 | 3.00 |
AdvanSix currently has a consensus price target of $33.50, suggesting a potential upside of 62.03%. 5E Advanced Materials has a consensus price target of $83.17, suggesting a potential upside of 2,338.91%. Given 5E Advanced Materials’ higher probable upside, analysts clearly believe 5E Advanced Materials is more favorable than AdvanSix.
Profitability
This table compares AdvanSix and 5E Advanced Materials’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| AdvanSix | 5.10% | 10.02% | 4.97% |
| 5E Advanced Materials | N/A | -313.00% | -68.37% |
Summary
AdvanSix beats 5E Advanced Materials on 10 of the 12 factors compared between the two stocks.
About AdvanSix
AdvanSix Inc. engages in the manufacture and sale of polymer resins in the United States and internationally. It offers Nylon 6, a polymer resin, which is a synthetic material used to produce fibers, filaments, engineered plastics, and films. The company also provides caprolactam to manufacture polymer resins; ammonium sulfate fertilizers to distributors, farm cooperatives, and retailers; and acetone that are used in the production of adhesives, paints, coatings, solvents, herbicides, and engineered plastic resins, as well as other intermediate chemicals, including phenol, monoisopropylamine, dipropylamine, monoallylamine, alpha-methylstyrene, cyclohexanone, methyl ethyl ketoxime, acetaldehyde oxime, 2-pentanone oxime, cyclohexanol, sulfuric acid, ammonia, and carbon dioxide. It offers its products under the Aegis, Capran, Sulf-N, Nadone, Naxol, and EZ-Blox brands. The company sells its products directly, as well as through distributors. AdvanSix Inc. was incorporated in 2016 and is headquartered in Parsippany, New Jersey.
About 5E Advanced Materials
5E Advanced Materials, Inc. engages in the exploration and development of mineral properties in Australia and the United States. The company primarily explores for borates and lithium deposits. It holds 100% interest in the Fort Cady project located in the Mojave Desert region in eastern San Bernardino County, California. The company was formerly known as American Pacific Borates Limited. The company was incorporated in 2016 and is based in Hesperia, California.
Receive News & Ratings for AdvanSix Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for AdvanSix and related companies with MarketBeat.com's FREE daily email newsletter.
