Aspen Aerogels (NYSE:ASPN – Get Free Report) and Rayonier Advanced Materials (NYSE:RYAM – Get Free Report) are both small-cap materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, profitability, analyst recommendations, earnings and institutional ownership.
Analyst Recommendations
This is a summary of recent recommendations for Aspen Aerogels and Rayonier Advanced Materials, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Aspen Aerogels | 2 | 1 | 3 | 0 | 2.17 |
| Rayonier Advanced Materials | 1 | 1 | 1 | 0 | 2.00 |
Aspen Aerogels presently has a consensus price target of $6.25, suggesting a potential upside of 10.91%. Rayonier Advanced Materials has a consensus price target of $13.00, suggesting a potential upside of 123.87%. Given Rayonier Advanced Materials’ higher probable upside, analysts plainly believe Rayonier Advanced Materials is more favorable than Aspen Aerogels.
Institutional & Insider Ownership
97.6% of Aspen Aerogels shares are held by institutional investors. Comparatively, 68.6% of Rayonier Advanced Materials shares are held by institutional investors. 3.0% of Aspen Aerogels shares are held by company insiders. Comparatively, 3.2% of Rayonier Advanced Materials shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Volatility & Risk
Aspen Aerogels has a beta of 3.06, suggesting that its stock price is 206% more volatile than the S&P 500. Comparatively, Rayonier Advanced Materials has a beta of 1.95, suggesting that its stock price is 95% more volatile than the S&P 500.
Earnings & Valuation
This table compares Aspen Aerogels and Rayonier Advanced Materials”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Aspen Aerogels | $271.10 million | 1.73 | -$389.55 million | ($1.58) | -3.57 |
| Rayonier Advanced Materials | $1.47 billion | 0.27 | -$420.67 million | ($5.43) | -1.07 |
Aspen Aerogels has higher earnings, but lower revenue than Rayonier Advanced Materials. Aspen Aerogels is trading at a lower price-to-earnings ratio than Rayonier Advanced Materials, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Aspen Aerogels and Rayonier Advanced Materials’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Aspen Aerogels | -60.81% | -27.87% | -14.77% |
| Rayonier Advanced Materials | -24.45% | -72.84% | -7.97% |
Summary
Aspen Aerogels beats Rayonier Advanced Materials on 8 of the 14 factors compared between the two stocks.
About Aspen Aerogels
Aspen Aerogels, Inc. designs, develops, manufactures, and sells aerogel insulation products primarily for use in the energy infrastructure and sustainable insulation materials markets in the United States, Asia, Canada, Europe, and Latin America. It operates in two segments, Energy Industrial and Thermal Barrier. The company offers PyroThin thermal barriers for use in lithium-ion batteries in electric vehicles and energy storage industries; Pyrogel XTE that reduces the risk of corrosion under insulation in energy infrastructure operating systems; and Pyrogel HPS for applications within the power generation market. It also offers Pyrogel XTF to provide protection against fire; Cryogel Z for sub-ambient and cryogenic applications in the energy infrastructure market; Spaceloft Subsea for use in pipe-in-pipe applications in offshore oil production; and Cryogel X201, which is used in designing cold systems, such as refrigerated appliances, cold storage equipment, and aerospace systems. The company was founded in 2001 and is headquartered in Northborough, Massachusetts.
About Rayonier Advanced Materials
Rayonier Advanced Materials Inc. manufactures and sells cellulose specialty products in the United States, China, Latin America, Canada, Japan, Europe, Latin America, other Asian countries, and internationally. It operates through High Purity Cellulose, Paperboard, and High-Yield Pulp segments. The company’s products include cellulose specialties, which are natural polymers that are used as raw materials to manufacture a range of consumer-oriented products, such as liquid crystal displays, impact-resistant plastics, thickeners for food products, pharmaceuticals, cosmetics, cigarette filters, high-tenacity rayon yarn for tires and industrial hoses, food casings, paints, and lacquers. It also offers commodity products, such as commodity viscose pulp used in woven applications, including rayon textiles for clothing and other fabrics, as well as in non-woven applications comprising baby wipes, cosmetic and personal wipes, industrial wipes, and mattress ticking; and absorbent materials consisting of fluff fibers that are used as an absorbent medium in disposable baby diapers, feminine hygiene products, incontinence pads, convalescent bed pads, industrial towels and wipes, and non-woven fabrics. In addition, the company provides paperboards for packaging, printing documents, brochures, promotional materials, paperback books and catalog covers, file folders, tags, and lottery tickets; and high-yield pulps to produces hardwood aspen, maple, and birch species for paperboard, packaging, printing and writing papers, and various other paper products. The company was founded in 1926 and is headquartered in Jacksonville, Florida.
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