Contrasting American Vanguard (NYSE:AVD) and Huabao International (OTCMKTS:HUIHY)

Huabao International (OTCMKTS:HUIHY) and American Vanguard (NYSE:AVD) are both small-cap basic materials companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, risk, analyst recommendations, valuation, institutional ownership and profitability.

Profitability

This table compares Huabao International and American Vanguard’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Huabao International	N/A	N/A	N/A
American Vanguard	-9.68%	-5.13%	-1.76%

Institutional and Insider Ownership

79.0% of American Vanguard shares are owned by institutional investors. 7.6% of American Vanguard shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk and Volatility

Huabao International has a beta of 0.33, meaning that its stock price is 67% less volatile than the S&P 500. Comparatively, American Vanguard has a beta of 1.42, meaning that its stock price is 42% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Huabao International and American Vanguard, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Huabao International	0	0	0	0	0.00
American Vanguard	1	0	1	0	2.00

American Vanguard has a consensus target price of $12.00, indicating a potential upside of 396.89%. Given American Vanguard’s stronger consensus rating and higher probable upside, analysts clearly believe American Vanguard is more favorable than Huabao International.

Earnings & Valuation

This table compares Huabao International and American Vanguard”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Huabao International	$484.77 million	3.33	-$54.09 million	N/A	N/A
American Vanguard	$515.11 million	0.13	-$49.88 million	($1.75)	-1.38

American Vanguard has higher revenue and earnings than Huabao International.

Summary

American Vanguard beats Huabao International on 8 of the 12 factors compared between the two stocks.

About Huabao International

Huabao International Holdings Limited, an investment holding company, researches, develops, produces, distributes, and sells flavours and fragrances, food ingredients, tobacco and aroma raw materials, and condiment products primarily in the People's Republic of China. It offers paper-making reconstituted tobacco leaves and new materials products for the tobacco industry. The company is also involved in the production and sale of natural extracts; tobacco flavours and fragrances; filter materials; cigarette filters; synthetic perfumes; and food flavours and fragrances. Huabao International Holdings Limited was founded in 1996 and is headquartered in Wan Chai, Hong Kong.

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.