Contrasting Mativ (NYSE:MATV) and Ecovyst (NYSE:ECVT)

Mativ (NYSE:MATV) and Ecovyst (NYSE:ECVT) are both small-cap basic materials companies, but which is the better business? We will contrast the two companies based on the strength of their risk, analyst recommendations, valuation, institutional ownership, earnings, profitability and dividends.

Earnings and Valuation

This table compares Mativ and Ecovyst”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Mativ	$1.98 billion	0.33	-$48.70 million	($8.03)	-1.49
Ecovyst	$704.50 million	1.60	-$6.65 million	($0.93)	-10.65

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

Risk & Volatility

Mativ has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500. Comparatively, Ecovyst has a beta of 1.2, indicating that its share price is 20% more volatile than the S&P 500.

Profitability

This table compares Mativ and Ecovyst’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Mativ	-22.03%	7.06%	1.73%
Ecovyst	-14.34%	8.93%	3.38%

Analyst Recommendations

This is a summary of current recommendations and price targets for Mativ and Ecovyst, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Mativ	1	1	1	0	2.00
Ecovyst	1	1	4	0	2.50

Mativ presently has a consensus target price of $10.00, indicating a potential downside of 16.24%. Ecovyst has a consensus target price of $11.60, indicating a potential upside of 17.11%. Given Ecovyst’s stronger consensus rating and higher probable upside, analysts plainly believe Ecovyst is more favorable than Mativ.

Insider & Institutional Ownership

95.0% of Mativ shares are owned by institutional investors. Comparatively, 86.7% of Ecovyst shares are owned by institutional investors. 1.0% of Mativ shares are owned by company insiders. Comparatively, 1.5% of Ecovyst shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Ecovyst beats Mativ on 11 of the 14 factors compared between the two stocks.

About Mativ

Mativ Holdings, Inc., together with its subsidiaries, manufactures and sells specialty materials in the United States, Europe, the Asia Pacific, the Americas, and internationally. The company operates through two segments, Advanced Technical Materials and Fiber-Based Solutions. The Advanced Technical Materials manufactures and sells various engineered polymer, resin and fiber-based substrates, nets, films, adhesive tapes, and other nonwovens for the filtration, protective solutions, release liners, and healthcare end-markets. This segment sells its products directly, as well as through sales agents and distributors. The Fiber-Based Solutions segment produces packaging and specialty paper products. This segment provides premium packaging products that are used for wine, spirits and beer labels, folding cartons, box wrap, bags, hang tags, and stored value cards servicing retail, cosmetics, spirits, and electronics end-use markets; and premium papers, which are used in commercial printing services, advertising collateral, stationery, corporate identity packages and brochures, direct mail, business cards, and other uses. It also offers branded paper-based products for the consumer channel, such as bright papers, cardstock, stationery paper, envelopes, journals, and planners. This segment distributes its products through authorized paper distributors, converters, retailers, and specialty business converters, as well as directly to end-users. The company was formerly known as Schweitzer-Mauduit International, Inc. and changed its name to Mativ Holdings, Inc. in July 2022. Mativ Holdings, Inc. was incorporated in 1995 and is headquartered in Alpharetta, Georgia.

About Ecovyst

Ecovyst Inc. offers specialty catalysts and services in the United States and internationally. The company operates in two segments, Ecoservices and Advanced Materials & Catalysts. The Ecoservices segment provides sulfuric acid recycling services and end-to-end logistics for production of alkylate for refineries; and virgin sulfuric acid for mining, water treatment, and industrial applications. The Advanced Materials & Catalysts segment offers advanced materials and specialty catalyst products and process solutions to producers and licensors of polyethylene and advanced silicas. This segment also supplies specialty zeolites and zeolite-based catalysts to customers for refining of oil primarily hydrocracking catalyst and dewaxing, sustainable fuels, and emission control systems for both on-road and non-road diesel engines. The company was formerly known as PQ Group Holdings Inc. and changed its name to Ecovyst Inc. in August 2021. Ecovyst Inc. was founded in 1831 and is headquartered in Malvern, Pennsylvania.