Critical Analysis: Linde (OTCMKTS:LNAGF) versus Aspen Aerogels (NYSE:ASPN)

Aspen Aerogels (NYSE:ASPN) and Linde (OTCMKTS:LNAGF) are both materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, earnings, risk, profitability and valuation.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Aspen Aerogels and Linde, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aspen Aerogels	2	1	4	0	2.29
Linde	0	0	0	0	0.00

Aspen Aerogels presently has a consensus target price of $5.94, indicating a potential upside of 20.58%. Given Aspen Aerogels’ stronger consensus rating and higher possible upside, equities analysts plainly believe Aspen Aerogels is more favorable than Linde.

Valuation and Earnings

This table compares Aspen Aerogels and Linde”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	1.51	-$389.55 million	($1.53)	-3.22
Linde	N/A	N/A	N/A	N/A	N/A

Linde has lower revenue, but higher earnings than Aspen Aerogels.

Profitability

This table compares Aspen Aerogels and Linde’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Aspen Aerogels	-62.45%	-31.12%	-17.33%
Linde	N/A	N/A	N/A

Institutional and Insider Ownership

97.6% of Aspen Aerogels shares are owned by institutional investors. 3.0% of Aspen Aerogels shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Summary

Aspen Aerogels beats Linde on 6 of the 9 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 Linde

Linde Aktiengesellschaft operates as a gases and engineering company worldwide. It operates in two divisions, Gases and Engineering. The Gases division produces and distributes atmospheric gases oxygen, nitrogen, and argon; and hydrogen, acetylene, carbon monoxide, carbon dioxide, shielding gases, noble gases, and high-purity specialty gases for use in industry, commerce, science, and research sectors, as well as develops and distributes procedures and systems for gas applications. This division also offers pharmaceutical and medical gases and services to the healthcare industry; and support services, technical equipment, and safety products, as well as develops hydrogen technology. The Engineering division provides planning, project development, and construction services with a focus on market segments, such as olefin, natural gas, air separation, and hydrogen and synthesis gas plants. This division's plants are used in various fields, including the petrochemical and chemical industries; in refineries and fertilizer plants; to recover air gases; to produce hydrogen and synthesis gases; to treat natural gas; and to produce noble gases. Linde Aktiengesellschaft is headquartered in Munich, Germany. As of October 31, 2018, Linde Aktiengesellschaft operates as a subsidiary of Linde plc.