Head-To-Head Review: Avient (NYSE:AVNT) versus Northern Technologies International (NASDAQ:NTIC)

Avient (NYSE:AVNT) and Northern Technologies International (NASDAQ:NTIC) are both basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their earnings, valuation, institutional ownership, risk, profitability, dividends and analyst recommendations.

Profitability

This table compares Avient and Northern Technologies International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Avient	2.51%	10.95%	4.31%
Northern Technologies International	-0.35%	-0.44%	-0.34%

Analyst Ratings

This is a breakdown of recent recommendations for Avient and Northern Technologies International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Avient	0	4	3	0	2.43
Northern Technologies International	1	1	0	0	1.50

Avient currently has a consensus target price of $47.00, indicating a potential upside of 11.56%. Given Avient’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Avient is more favorable than Northern Technologies International.

Volatility & Risk

Avient has a beta of 1.44, indicating that its stock price is 44% more volatile than the S&P 500. Comparatively, Northern Technologies International has a beta of 0.21, indicating that its stock price is 79% less volatile than the S&P 500.

Insider and Institutional Ownership

95.5% of Avient shares are held by institutional investors. Comparatively, 32.9% of Northern Technologies International shares are held by institutional investors. 0.9% of Avient shares are held by insiders. Comparatively, 24.9% of Northern Technologies International shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Dividends

Avient pays an annual dividend of $1.10 per share and has a dividend yield of 2.6%. Northern Technologies International pays an annual dividend of $0.04 per share and has a dividend yield of 0.4%. Avient pays out 123.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Northern Technologies International pays out -100.0% of its earnings in the form of a dividend. Avient has increased its dividend for 1 consecutive years. Avient is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation and Earnings

This table compares Avient and Northern Technologies International”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Avient	$3.26 billion	1.18	$81.90 million	$0.89	47.34
Northern Technologies International	$84.24 million	1.02	$20,000.00	($0.04)	-226.25

Avient has higher revenue and earnings than Northern Technologies International. Northern Technologies International is trading at a lower price-to-earnings ratio than Avient, indicating that it is currently the more affordable of the two stocks.

Summary

Avient beats Northern Technologies International on 15 of the 17 factors compared between the two stocks.

About Avient

Avient Corporation operates as a formulator of material solutions in the United States, Canada, Mexico, Europe, South America, and Asia. It operates in two segments, Color, Additives and Inks; and Specialty Engineered Materials. The Color, Additives and Inks segment offers custom color and additive concentrates in solid and liquid form for thermoplastics, dispersions for thermosets, and specialty inks; custom-formulated liquid system, such as polyester, vinyl, natural rubber and latex, polyurethane, and silicone; and proprietary inks. Its products are used in medical and pharmaceutical devices, food packaging, personal care and cosmetics, transportation, building products, wire and cable, recreational and athletic apparel, construction and filtration, outdoor furniture, healthcare, textiles and appliances, and industrial markets. The Specialty Engineered Materials segment provides specialty polymer formulations, services, and solutions for designers, assemblers, and processors of thermoplastic materials. It sells its products through direct sales personnel, distributors, and commissioned sales agents. The company was formerly known as PolyOne Corporation and changed its name to Avient Corporation in June 2020. Avient Corporation was founded in 1885 and is headquartered in Avon Lake, Ohio.

About Northern Technologies International

Northern Technologies International Corporation develops and markets rust and corrosion inhibiting solutions in North America, South America, Europe, Asia, the Middle East and internationally. It offers rust and corrosion inhibiting products, such as plastic and paper packaging, liquids, coatings, rust removers, cleaners, diffusers, and engineered solutions designed for the oil and gas industry under the ZERUST brand. The company provides a portfolio of bio-based and certified compostable polymer resin compounds and finished products under the Natur-Tec brand. In addition, it offers on-site and technical consulting for rust and corrosion prevention issues. It sells its products and services to automotive, electronics, electrical, mechanical, military, retail consumer, and oil and gas markets through direct sales force, network of independent distributors, agents, manufacturer's sales representatives, and strategic partners. The company was founded in 1970 and is headquartered in Circle Pines, Minnesota.