HL Acquisition (NASDAQ:HCCH) and AgroFresh Solutions (NASDAQ:AGFS) are both small-cap unclassified companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, valuation, profitability, analyst recommendations, institutional ownership, risk and dividends.

Analyst Ratings

This is a breakdown of recent recommendations for HL Acquisition and AgroFresh Solutions, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
HL Acquisition 0 0 0 0 N/A
AgroFresh Solutions 0 1 4 0 2.80

AgroFresh Solutions has a consensus price target of $5.08, indicating a potential upside of 232.03%. Given AgroFresh Solutions’ higher possible upside, analysts plainly believe AgroFresh Solutions is more favorable than HL Acquisition.

Profitability

This table compares HL Acquisition and AgroFresh Solutions’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
HL Acquisition N/A 16.71% 1.49%
AgroFresh Solutions -18.44% -8.77% -3.51%

Insider & Institutional Ownership

47.3% of HL Acquisition shares are owned by institutional investors. Comparatively, 81.8% of AgroFresh Solutions shares are owned by institutional investors. 1.6% of AgroFresh Solutions shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares HL Acquisition and AgroFresh Solutions’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
HL Acquisition N/A N/A N/A N/A N/A
AgroFresh Solutions $178.79 million 0.44 -$30.06 million ($0.56) -2.73

HL Acquisition has higher earnings, but lower revenue than AgroFresh Solutions.

Summary

AgroFresh Solutions beats HL Acquisition on 5 of the 8 factors compared between the two stocks.

HL Acquisition Company Profile

HL Acquisition Corp. does not have significant operations. It intends to acquire, engage in a share exchange, share reconstruction and amalgamation with, purchase all or substantially all of the assets of, enter into contractual arrangements with, or engage in any other similar business combination with one or more businesses or entities. The company was founded in 2018 and is based in New York, New York.

AgroFresh Solutions Company Profile

AgroFresh Solutions, Inc. provides data-driven solutions worldwide. The company uses 1-Methylcyclopropene technology, an ethylene action inhibitor to maintain freshness and extend the shelf life of various fresh produce. Its solutions enable growers and packers of fresh produce to preserve and enhance the freshness, quality, and value of fresh produce, including apples, pears, kiwifruit, plums, persimmons avocados, and bananas, as well as flowers. The company's flagship product is the SmartFresh system that regulates the post-harvest ripening effects of ethylene to preserve the texture, firmness, taste, and appearance of produce during storage, transportation, and retail display. It also provides Harvista technology for use in pre-harvest management of pome fruit, apples, pears, cherries, and blueberries. In addition, the company is developing RipeLock Quality System, a proprietary technology that extends the shelf life of bananas; FreshCloud, a suite of monitoring and screening solutions; and LandSpring, a technology that minimizes stress induced ethylene effects in vegetable seedling transplants allowing for post-transplant vigor. The company was formerly known as Boulevard Acquisition Corp. and changed its name to AgroFresh Solutions, Inc. in July 2015. AgroFresh Solutions, Inc. is headquartered in Philadelphia, Pennsylvania.

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