Comparing Chemtura (NYSE:CHMT) & AdvanSix (ASIX)

AdvanSix (NYSE: ASIX) and Chemtura (NYSE:CHMT) are both basic materials companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.

Analyst Recommendations

This is a breakdown of recent recommendations for AdvanSix and Chemtura, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AdvanSix 0 0 1 0 3.00
Chemtura 0 0 0 0 N/A

AdvanSix presently has a consensus target price of $46.00, indicating a potential upside of 6.60%. Given AdvanSix’s higher probable upside, equities research analysts clearly believe AdvanSix is more favorable than Chemtura.

Valuation and Earnings

This table compares AdvanSix and Chemtura’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AdvanSix $1.19 billion 1.10 $34.14 million $1.59 27.14
Chemtura N/A N/A N/A ($0.19) -176.32

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

Profitability

This table compares AdvanSix and Chemtura’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AdvanSix 3.64% 20.30% 5.64%
Chemtura 5.71% 9.00% 4.02%

Institutional and Insider Ownership

71.3% of AdvanSix shares are owned by institutional investors. Comparatively, 93.1% of Chemtura shares are owned by institutional investors. 2.7% of AdvanSix shares are owned by company insiders. Comparatively, 2.6% of Chemtura shares are owned by company 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.

Summary

AdvanSix beats Chemtura on 8 of the 10 factors compared between the two stocks.

AdvanSix Company Profile

AdvanSix Inc. is an integrated manufacturer of Nylon 6. The Company also sells a variety of other products, all of which are produced as part of the Nylon 6 resin manufacturing process primarily, including caprolactam, ammonium sulfate fertilizers and other chemical intermediates. The Company operates primarily through its integrated manufacturing sites located in Frankford, Pennsylvania, Hopewell, Virginia, and Chesterfield, Virginia. The Company offers ammonium sulfate, which is used by customers as a nitrogen-based fertilizer. It produces ammonium sulfate fertilizer as part of its manufacturing process. The Company manufactures ammonium sulfate fertilizers including Sulf-N and Sulf-N 26. The Company provides AdvanSix Aegis nylon resins and Aegis barrier nylon resins. Its nylon resins are a preferred choice in food, liquid, and consumer packaging along with mono/multifilament products, carpet fibers, automotive compounding and more. It offers Capran biaxially oriented nylon films.

Chemtura Company Profile

Chemtura Corporation is a chemical company. The Company is engaged in developing, manufacturing and marketing of engineered industrial specialty chemicals. The Company’s products are sold to industrial manufacturing customers for use as additives, ingredients or intermediates. The Company’s segments are Industrial Performance Products and Industrial Engineered Products. The Industrial Performance Products segment manufactures and markets lubricant additive components, synthetic lubricant base-stocks, synthetic finished fluids, calcium sulfonate specialty greases and phosphate and polyester based fluids, and is also engaged in the development and production of hot cast elastomer pre-polymers. The Industrial Engineered Products segment develops and manufactures bromine and bromine-based products and organometallic compounds. The Company operates in a range of industries, including automotive, building and construction, electronics, lubricants, packaging and transportation.

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