PolyOne (NYSE: POL) and AdvanSix (NYSE:ASIX) are both basic materials companies, but which is the better stock? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, earnings, risk, institutional ownership and profitability.
Institutional and Insider Ownership
95.5% of PolyOne shares are owned by institutional investors. Comparatively, 77.7% of AdvanSix shares are owned by institutional investors. 1.3% of PolyOne shares are owned by insiders. Comparatively, 2.7% of AdvanSix shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Volatility and Risk
PolyOne has a beta of 1.68, suggesting that its share price is 68% more volatile than the S&P 500. Comparatively, AdvanSix has a beta of 1.44, suggesting that its share price is 44% more volatile than the S&P 500.
Earnings and Valuation
This table compares PolyOne and AdvanSix’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|PolyOne||$3.23 billion||1.08||-$57.70 million||$2.21||19.65|
|AdvanSix||$1.48 billion||0.81||$146.69 million||$3.00||13.00|
AdvanSix has lower revenue, but higher earnings than PolyOne. AdvanSix is trading at a lower price-to-earnings ratio than PolyOne, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and recommmendations for PolyOne and AdvanSix, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
PolyOne currently has a consensus target price of $45.00, indicating a potential upside of 3.62%. AdvanSix has a consensus target price of $41.00, indicating a potential upside of 5.10%. Given AdvanSix’s stronger consensus rating and higher possible upside, analysts clearly believe AdvanSix is more favorable than PolyOne.
This table compares PolyOne and AdvanSix’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
PolyOne pays an annual dividend of $0.70 per share and has a dividend yield of 1.6%. AdvanSix does not pay a dividend. PolyOne pays out 31.7% of its earnings in the form of a dividend. PolyOne has raised its dividend for 6 consecutive years.
PolyOne beats AdvanSix on 9 of the 17 factors compared between the two stocks.
PolyOne Corporation provides specialized polymer materials, services, and solutions in the United States, Canada, Mexico, Europe, South America, and Asia. The company operates in four segments: Color, Additives and Inks; Specialty Engineered Materials; Performance Products and Solutions; and PolyOne Distribution. The Color, Additives and Inks segment offers specialized color and additive concentrates in solid and liquid form for thermoplastics; dispersions for thermosets; and specialty inks, plastisols, and vinyl slush molding solutions. The Specialty Engineered Materials segment provides specialty polymer formulations, services, and solutions for designers, assemblers, and processors of thermoplastic materials; and long glass and carbon fiber technology, and thermoset and thermoplastic composites. The Performance Products and Solutions segment offers products and services for vinyl molding and extrusion processors to manufacturers of durable plastic parts and consumer-oriented products. It also provides materials testing, component analysis, custom formulation development, colorant and additive, part design assistance, structural analysis, process simulation, mold design and flow analysis, and extruder screw design services, as well as contract manufacturing and outsourced polymer manufacturing services to resin producers and polymer marketers. The PolyOne Distribution segment distributes approximately 4,000 grades of engineering and commodity grade resins to custom injection molders and extruders. The company sells its products through direct sales personnel, distributors, and commissioned sales agents. PolyOne Corporation was founded in 1927 and is headquartered in Avon Lake, Ohio.
AdvanSix Inc. manufactures and sells polymer resins in the United States. It offers Nylon 6, a polymer resin, which is a synthetic material used to produce engineered plastics, fibers, filaments, and films. The company also provides caprolactam, ammonium sulfate fertilizers, and acetone, as well as other intermediate chemicals, including phenol, alpha-methylstyrene, cyclohexanone, methyl ethyl ketoxime, cyclohexanol, acetaldehyde oxime, 2-pentanone oxime, sulfuric acid, ammonia, and carbon dioxide. It offers its products under the Aegis, Capran, Sulf-N, Nadone, Naxol, and EZ-Blox brands. AdvanSix Inc. was incorporated in 2016 and is headquartered in Parsippany, New Jersey.
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