American Vanguard (NYSE:AVD – Get Free Report) and Minerals Technologies (NYSE:MTX – Get Free Report) are both small-cap basic materials companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, risk, analyst recommendations and valuation.
Valuation and Earnings
This table compares American Vanguard and Minerals Technologies”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| American Vanguard | $530.07 million | 0.27 | -$126.34 million | ($3.98) | -1.28 |
| Minerals Technologies | $2.07 billion | 0.86 | $167.10 million | ($0.02) | -2,866.25 |
Institutional and Insider Ownership
79.0% of American Vanguard shares are held by institutional investors. Comparatively, 97.3% of Minerals Technologies shares are held by institutional investors. 7.6% of American Vanguard shares are held by company insiders. Comparatively, 3.3% of Minerals Technologies shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares American Vanguard and Minerals Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| American Vanguard | -23.72% | -26.21% | -9.97% |
| Minerals Technologies | -0.08% | 10.69% | 5.31% |
Dividends
American Vanguard pays an annual dividend of $0.03 per share and has a dividend yield of 0.6%. Minerals Technologies pays an annual dividend of $0.48 per share and has a dividend yield of 0.8%. American Vanguard pays out -0.8% of its earnings in the form of a dividend. Minerals Technologies pays out -2,400.0% 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. Minerals Technologies has increased its dividend for 2 consecutive years. Minerals Technologies is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Volatility and Risk
American Vanguard has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500. Comparatively, Minerals Technologies has a beta of 1.26, meaning that its stock price is 26% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of current ratings and target prices for American Vanguard and Minerals Technologies, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| American Vanguard | 1 | 0 | 1 | 0 | 2.00 |
| Minerals Technologies | 1 | 0 | 1 | 0 | 2.00 |
American Vanguard currently has a consensus target price of $12.00, suggesting a potential upside of 136.03%. Minerals Technologies has a consensus target price of $84.00, suggesting a potential upside of 46.53%. Given American Vanguard’s higher probable upside, equities analysts clearly believe American Vanguard is more favorable than Minerals Technologies.
Summary
Minerals Technologies beats American Vanguard on 11 of the 14 factors compared between the two stocks.
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.
About Minerals Technologies
Minerals Technologies Inc. develops, produces, and markets various mineral, mineral-based, and related systems and services. The company operates through two segments, Consumer & Specialties, and Engineered Solutions segments. The Consumer & Specialties segment offers household and personal care products, such as pet litter, personal care, fabric care, edible oil and other fluid purification, animal health, and agricultural products; and specialty additives products, including precipitated calcium carbonate and ground calcium carbonate products that are used in the paper, paperboard, and fiber based packaging industries, as well as automotive, construction, and table and food applications. This segment produces limestone and dolomitic limestone used in construction, automotive, and consumer markets for packaging applications. The Engineered Solutions segment provides high-temperature technology products consisting of custom-blended mineral and non-mineral products for casting auto parts, farm and construction equipment, oil and gas production equipment, power generation turbine castings, and rail car components; and environmental and infrastructure products comprising geosynthetic clay lining systems, vapor intrusion mitigation products, sub surface waterproofing systems, green roofs, wastewater remediation, drinking water purification technologies, and drilling products. In addition, this segment provides chromite products; gunnable monolithic refractory products and application systems; monolithic refractory materials and pre-cast refractory shapes; refractory shapes and linings; carbon composite and pyrolitic graphite; and filtration and well testing services. It markets its products primarily through its direct sales force, as well as regional distributors. The company serves in the United States, Canada, Latin America, Europe, Africa, and Asia. Minerals Technologies Inc. was incorporated in 1968 and is headquartered in New York, New York.
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