Head-To-Head Analysis: Aspen Aerogels (NYSE:ASPN) & Toray Industries (OTCMKTS:TRYIY)

Toray Industries (OTCMKTS:TRYIY) and Aspen Aerogels (NYSE:ASPN) are both materials companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, earnings, dividends and risk.

Profitability

This table compares Toray Industries and Aspen Aerogels’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Toray Industries	3.48%	4.82%	2.63%
Aspen Aerogels	-62.45%	-31.12%	-17.33%

Valuation and Earnings

This table compares Toray Industries and Aspen Aerogels”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Toray Industries	$17.17 billion	0.69	$524.84 million	$0.82	19.12
Aspen Aerogels	$271.10 million	1.50	-$389.55 million	($1.53)	-3.21

Toray Industries has higher revenue and earnings than Aspen Aerogels. Aspen Aerogels is trading at a lower price-to-earnings ratio than Toray Industries, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

97.6% of Aspen Aerogels shares are owned by institutional investors. 3.0% of Aspen Aerogels shares are owned by 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.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Toray Industries	0	1	0	1	3.00
Aspen Aerogels	2	1	4	0	2.29

Aspen Aerogels has a consensus target price of $5.94, indicating a potential upside of 21.05%. Given Aspen Aerogels’ higher possible upside, analysts plainly believe Aspen Aerogels is more favorable than Toray Industries.

Volatility & Risk

Toray Industries has a beta of 0.51, indicating that its share price is 49% less volatile than the S&P 500. Comparatively, Aspen Aerogels has a beta of 2.97, indicating that its share price is 197% more volatile than the S&P 500.

Summary

Toray Industries beats Aspen Aerogels on 9 of the 15 factors compared between the two stocks.

About Toray Industries

Toray Industries, Inc., together with its subsidiaries, manufactures, processes, and sells fibers and textiles, performance chemicals, carbon fiber composite materials, environment and engineering products, and life science products in Japan, China, North America, Europe, and internationally. The company offers filament yarns, staple fibers, and spun yarns, as well as woven and knitted fabrics of nylon, polyester, acrylics, and others; non-woven fabrics; ultra-fine fibers; and apparel products. It also provides nylon, ABS, PBT, PPS, and other resins and molded products; polyolefin foam products; polyester, polyethylene, polypropylene, and other films; processed film products; raw materials for synthetic fibers and other plastics; fine chemicals; electronic and information materials; and graphic materials. In addition, the company offers carbon fibers, carbon fiber composite materials, and molded products; analysis, physical evaluation, research, and other services; and pharmaceuticals, medical devices, etc. Further, it provides engineering services; condominiums; industrial equipment and machinery; IT-related equipment; water treatment membranes and related equipment; and materials for housing, building, and civil engineering applications. The company was formerly known as Toyo Rayon Co., Ltd. and changed its name to Toray Industries, Inc. in 1970. The company was incorporated in 1926 and is headquartered in Tokyo, Japan.

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.