Head to Head Analysis: AdvanSix (NYSE:ASIX) and H. B. Fuller (NYSE:FUL)

AdvanSix (NYSE:ASIX) and H. B. Fuller (NYSE:FUL) are both basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, earnings, profitability, institutional ownership, valuation and analyst recommendations.

Dividends

AdvanSix pays an annual dividend of $0.64 per share and has a dividend yield of 2.5%. H. B. Fuller pays an annual dividend of $0.98 per share and has a dividend yield of 1.6%. AdvanSix pays out 35.4% of its earnings in the form of a dividend. H. B. Fuller pays out 32.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. AdvanSix has increased its dividend for 2 consecutive years and H. B. Fuller has increased its dividend for 57 consecutive years.

Valuation and Earnings

This table compares AdvanSix and H. B. Fuller”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
AdvanSix	$1.52 billion	0.45	$49.29 million	$1.81	13.95
H. B. Fuller	$3.47 billion	0.97	$151.97 million	$3.03	20.36

H. B. Fuller has higher revenue and earnings than AdvanSix. AdvanSix is trading at a lower price-to-earnings ratio than H. B. Fuller, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current recommendations and price targets for AdvanSix and H. B. Fuller, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AdvanSix	0	2	1	0	2.33
H. B. Fuller	1	2	3	1	2.57

AdvanSix currently has a consensus price target of $25.67, indicating a potential upside of 1.63%. H. B. Fuller has a consensus price target of $65.50, indicating a potential upside of 6.16%. Given H. B. Fuller’s stronger consensus rating and higher probable upside, analysts plainly believe H. B. Fuller is more favorable than AdvanSix.

Insider & Institutional Ownership

86.4% of AdvanSix shares are held by institutional investors. Comparatively, 95.9% of H. B. Fuller shares are held by institutional investors. 5.6% of AdvanSix shares are held by company insiders. Comparatively, 1.8% of H. B. Fuller 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.

Risk & Volatility

AdvanSix has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500. Comparatively, H. B. Fuller has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500.

Profitability

This table compares AdvanSix and H. B. Fuller’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
AdvanSix	3.24%	6.97%	3.40%
H. B. Fuller	4.62%	11.84%	4.52%

Summary

H. B. Fuller beats AdvanSix on 15 of the 18 factors compared between the two stocks.

About AdvanSix

AdvanSix Inc. engages in the manufacture and sale of polymer resins in the United States and internationally. It offers Nylon 6, a polymer resin, which is a synthetic material used to produce fibers, filaments, engineered plastics, and films. The company also provides caprolactam to manufacture polymer resins; ammonium sulfate fertilizers to distributors, farm cooperatives, and retailers; and acetone that are used in the production of adhesives, paints, coatings, solvents, herbicides, and engineered plastic resins, as well as other intermediate chemicals, including phenol, monoisopropylamine, dipropylamine, monoallylamine, alpha-methylstyrene, cyclohexanone, methyl ethyl ketoxime, acetaldehyde oxime, 2-pentanone oxime, cyclohexanol, sulfuric acid, ammonia, and carbon dioxide. It offers its products under the Aegis, Capran, Sulf-N, Nadone, Naxol, and EZ-Blox brands. The company sells its products directly, as well as through distributors. AdvanSix Inc. was incorporated in 2016 and is headquartered in Parsippany, New Jersey.

About H. B. Fuller

H.B. Fuller Company, together with its subsidiaries, formulates, manufactures, and markets adhesives, sealants, coatings, polymers, tapes, encapsulants, additives, and other specialty chemical products. It operates through three segments: Hygiene, Health and Consumable Adhesives; Engineering Adhesives; and Construction Adhesives. The Hygiene, Health and Consumable Adhesives segment produces and supplies specialty industrial adhesives, such as thermoplastic, thermoset, reactive, water-based, and solvent-based products for applications in various markets, including packaging, converting, nonwoven and hygiene, and health and beauty. The Engineering Adhesives segment produces and supplies high performance industrial adhesives comprising reactive, light cure, two-part liquids, polyurethane, silicone, film, and fast cure products to the durable assembly, performance wood and textile, transportation, electronics, clean energy, aerospace and defense, appliance, heavy machinery, and insulating glass markets. The Construction Adhesives segment provides products used for tile setting, commercial roofing, heating, ventilation, and air conditioning and insulation applications, as well as caulks and sealants for the consumer market and professional trade. The company sells its products directly to customers, as well as through distributors and retailers in the Americas, Europe, India, the Middle East, Africa, and the Asia Pacific. H.B. Fuller Company was founded in 1887 and is headquartered in Saint Paul, Minnesota.