American Vanguard (NYSE: AVD) and Evogene (NASDAQ:EVGN) are both small-cap basic materials companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.
Earnings and Valuation
This table compares American Vanguard and Evogene’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|American Vanguard||$355.05 million||1.88||$20.27 million||$0.57||39.12|
|Evogene||$3.38 million||23.62||-$20.83 million||N/A||N/A|
This is a breakdown of recent ratings and price targets for American Vanguard and Evogene, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
American Vanguard currently has a consensus price target of $25.50, indicating a potential upside of 14.35%. Given American Vanguard’s higher possible upside, equities analysts clearly believe American Vanguard is more favorable than Evogene.
This table compares American Vanguard and Evogene’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility and Risk
American Vanguard has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500. Comparatively, Evogene has a beta of 0.76, suggesting that its share price is 24% less volatile than the S&P 500.
Insider and Institutional Ownership
77.3% of American Vanguard shares are held by institutional investors. Comparatively, 35.7% of Evogene shares are held by institutional investors. 5.2% of American Vanguard shares are held 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.
American Vanguard pays an annual dividend of $0.08 per share and has a dividend yield of 0.4%. Evogene does not pay a dividend. American Vanguard pays out 14.0% of its earnings in the form of a dividend.
American Vanguard beats Evogene on 11 of the 13 factors compared between the two stocks.
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. The company manufactures and formulates chemicals, including insecticides, fungicides, herbicides, molluscicides, growth regulators, and soil fumigants in liquid, powder, and granular forms for crops, turf and ornamental plants, and human and animal health protection. It also markets and distributes end-use chemical and biological products for crop applications; and distributes technology based pesticide solutions for greenhouse and nursery production applications, as well as offers formulations, such as PCNB, chlorothalonil, and propiconazole. The company distributes its products through national distribution companies and buying groups or co-operatives; and through sales offices and sales force executives. American Vanguard Corporation was founded in 1969 and is headquartered in Newport Beach, California.
Evogene Ltd., a biotechnology company, focuses on the enhancement of crop productivity and performance in the United States and Germany. It operates through two segments, Evogene and Evofuel. The Evogene segment develops seed traits, ag-chemical products, and ag-biological products to enhance plant performance. This segment develops seed traits enhancing plant yield and tolerance to abiotic stresses, such as enhanced tolerance to drought, heat, and salinity, as well as seed traits for enhancing plant resistance to biotic stresses, including resistance to diseases, pests, and insects; novel herbicides; and bio-stimulants, which include microbial-based products that are applied externally to the plant for yield enhancement. Its products focus on various crops, such as corn, soybean, wheat, rice, and cotton. The Evofuel segment develops enhanced species of the castor bean plant to serve as a source of feedstock for biofuel and other industrial uses. The company has strategic collaborations with various agricultural companies, including BASF, Bayer, DuPont, Monsanto, and Syngenta that cover 24 products in various stages of development. Evogene Ltd. was founded in 1999 and is headquartered in Rehovot, Israel.
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