Advantage Solutions (NASDAQ:ADV) vs. Hengan International Group (OTCMKTS:HEGIY) Financial Analysis

Advantage Solutions (NASDAQ:ADV) and Hengan International Group (OTCMKTS:HEGIY) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, analyst recommendations, risk, profitability and earnings.

Institutional & Insider Ownership

49.8% of Advantage Solutions shares are held by institutional investors. Comparatively, 0.0% of Hengan International Group shares are held by institutional investors. 9.4% of Advantage Solutions shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Advantage Solutions and Hengan International Group”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Advantage Solutions	$3.54 billion	0.10	-$227.74 million	($17.50)	-1.48
Hengan International Group	$3.15 billion	1.34	$319.73 million	N/A	N/A

Hengan International Group has lower revenue, but higher earnings than Advantage Solutions.

Profitability

This table compares Advantage Solutions and Hengan International Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Advantage Solutions	-6.43%	-34.48%	-7.70%
Hengan International Group	N/A	N/A	N/A

Volatility and Risk

Advantage Solutions has a beta of 1.85, meaning that its share price is 85% more volatile than the S&P 500. Comparatively, Hengan International Group has a beta of 0.17, meaning that its share price is 83% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Advantage Solutions and Hengan International Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Advantage Solutions	2	1	1	0	1.75
Hengan International Group	0	0	0	0	0.00

Advantage Solutions presently has a consensus price target of $28.13, suggesting a potential upside of 8.89%. Given Advantage Solutions’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Advantage Solutions is more favorable than Hengan International Group.

Summary

Advantage Solutions beats Hengan International Group on 7 of the 12 factors compared between the two stocks.

About Advantage Solutions

Advantage Solutions Inc. provides business solutions to consumer goods manufacturers and retailers in North America and internationally. It operates in two segments, Sales and Marketing. The Sales segment offers brand-centric services, such as headquarter relationship management; analytics, insights, and intelligence; and brand-centric merchandising services. This segment also provides retailer-centric services comprising retailer-centric merchandising and in-store media services. The Marketing segment offers brand-centric services, including shopper and consumer marketing, and brand experiential services; retailer-centric services, such as retail experiential and private label services; and digital marketing, and digital media and advertising services. The company was formerly known as Karman Holding Corp. and changed its name to Advantage Solutions Inc. in March 2016. The company was founded in 1987 and is headquartered in Irvine, California.

About Hengan International Group

Hengan International Group Company Limited, an investment holding company, manufactures, distributes, and sells personal hygiene products in the People's Republic of China and internationally. The company offers pocket handkerchiefs, box and soft tissue papers, kitchen towels/papers, toilet rolls, first-aid products, enema, garbage and food bags, preservation papers, table cloths and disposable toilet brush, sanitary napkins, pantiliners, overnight pants, wet tissues, maternal and child care products, adult and baby diapers, and cleansing products. It is also involved in the trading of various products for ladies, pregnant women, infants, and kids, as well as disposable fiber-based products; and engages in the ecommerce business. In addition, the company manufactures and distributes heat and power; and manufactures, distributes, and sells gas, protective equipment, medical instrument, skin care products, antiseptics, and household products. Hengan International Group Company Limited was founded in 1985 and is headquartered in Jinjiang, the People's Republic of China.