AdvanSix (ASIX) versus Orion Engineered Carbons (OEC) Head-To-Head Analysis
AdvanSix (NYSE: ASIX) and Orion Engineered Carbons (NYSE:OEC) 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 analyst recommendations, profitability, dividends, risk, valuation, earnings and institutional ownership.
Risk & Volatility
AdvanSix has a beta of 2.84, meaning that its stock price is 184% more volatile than the S&P 500. Comparatively, Orion Engineered Carbons has a beta of 0.54, meaning that its stock price is 46% less volatile than the S&P 500.
This table compares AdvanSix and Orion Engineered Carbons’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Orion Engineered Carbons||4.57%||82.13%||5.58%|
Orion Engineered Carbons pays an annual dividend of $0.81 per share and has a dividend yield of 3.5%. AdvanSix does not pay a dividend. Orion Engineered Carbons pays out 69.2% of its earnings in the form of a dividend.
Valuation and Earnings
This table compares AdvanSix and Orion Engineered Carbons’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|AdvanSix||$1.19 billion||1.05||$34.14 million||$1.58||26.00|
|Orion Engineered Carbons||$1.14 billion||1.20||$49.38 million||$1.17||19.70|
Orion Engineered Carbons has lower revenue, but higher earnings than AdvanSix. Orion Engineered Carbons is trading at a lower price-to-earnings ratio than AdvanSix, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
71.4% of AdvanSix shares are held by institutional investors. Comparatively, 54.6% of Orion Engineered Carbons shares are held by institutional investors. 2.7% of AdvanSix shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This is a breakdown of current recommendations and price targets for AdvanSix and Orion Engineered Carbons, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Orion Engineered Carbons||0||1||4||0||2.80|
AdvanSix presently has a consensus target price of $46.00, suggesting a potential upside of 11.98%. Orion Engineered Carbons has a consensus target price of $25.40, suggesting a potential upside of 10.20%. Given AdvanSix’s stronger consensus rating and higher probable upside, analysts clearly believe AdvanSix is more favorable than Orion Engineered Carbons.
AdvanSix beats Orion Engineered Carbons on 10 of the 16 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.
Orion Engineered Carbons Company Profile
Orion Engineered Carbons S.A. is a producer of carbon black. The Company operates through two segments: Specialty Carbon Black and Rubber Carbon Black. The Specialty Carbon Black segment is engaged in the production of specialty carbon black. The Rubber Carbon Black segment is involved in the production of rubber carbon black. As of December 31, 2016, it operated a diversified carbon black business with over 280 specialty carbon black grades and approximately 80 rubber carbon black grades. Carbon black is used as a pigment and as a performance additive in coatings, polymers, printing and special applications (specialty carbon black), and in the reinforcement of rubber in tires and mechanical rubber goods (rubber carbon black). As of December 31, 2016, it operated a global platform of 13 production facilities in Europe, North and South America, Asia and South Africa and three sales companies, as well as one jointly-owned production plant in Germany.
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