Head to Head Survey: Rayonier Advanced Materials (RYAM) vs. OMNOVA Solutions (OMN)
Rayonier Advanced Materials (NYSE: RYAM) and OMNOVA Solutions (NYSE:OMN) are both small-cap specialty chemicals – nec companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, analyst recommendations, dividends, risk, institutional ownership, profitability and valuation.
This is a summary of current recommendations for Rayonier Advanced Materials and OMNOVA Solutions, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Rayonier Advanced Materials||0||0||5||0||3.00|
Rayonier Advanced Materials presently has a consensus price target of $19.20, indicating a potential upside of 15.52%. OMNOVA Solutions has a consensus price target of $12.00, indicating a potential upside of 13.21%. Given Rayonier Advanced Materials’ stronger consensus rating and higher possible upside, research analysts plainly believe Rayonier Advanced Materials is more favorable than OMNOVA Solutions.
Rayonier Advanced Materials pays an annual dividend of $0.28 per share and has a dividend yield of 1.7%. OMNOVA Solutions does not pay a dividend. Rayonier Advanced Materials pays out 51.9% of its earnings in the form of a dividend.
Risk and Volatility
Rayonier Advanced Materials has a beta of 4.26, indicating that its share price is 326% more volatile than the S&P 500. Comparatively, OMNOVA Solutions has a beta of 2.22, indicating that its share price is 122% more volatile than the S&P 500.
Institutional & Insider Ownership
91.5% of Rayonier Advanced Materials shares are held by institutional investors. Comparatively, 87.4% of OMNOVA Solutions shares are held by institutional investors. 2.1% of Rayonier Advanced Materials shares are held by company insiders. Comparatively, 4.8% of OMNOVA Solutions shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Rayonier Advanced Materials and OMNOVA Solutions’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Rayonier Advanced Materials||$869.00 million||0.83||$73.28 million||$0.54||30.78|
|OMNOVA Solutions||$759.90 million||0.63||-$400,000.00||($0.13)||-81.54|
Rayonier Advanced Materials has higher revenue and earnings than OMNOVA Solutions. OMNOVA Solutions 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.
This table compares Rayonier Advanced Materials and OMNOVA Solutions’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Rayonier Advanced Materials||4.98%||18.12%||2.79%|
Rayonier Advanced Materials beats OMNOVA Solutions on 12 of the 16 factors compared between the two stocks.
About Rayonier Advanced Materials
Rayonier Advanced Materials Inc. is engaged in the production of cellulose specialties. The Company’s product lines include cellulose specialties and commodity products. Its products are used in manufacturing processes. The Company’s products are sold throughout the world to companies for use in various industrial applications, and to produce a range of products, including cigarette filters, foods, pharmaceuticals, textiles and electronics. The Company focuses on producing various forms of cellulose specialties products, such as cellulose acetate and cellulose ethers. The Company’s production facilities are located in Jesup, Georgia and Fernandina Beach, Florida. The Jesup plant can produce cellulose specialties or commodity products using both hardwood and softwood in a pre-hydrolyzed kraft or high potential of hydrogen (pH) cooking process. The Fernandina Beach plant can produce cellulose specialties or commodity products using softwood in a sulfite or low pH cooking process.
About OMNOVA Solutions
OMNOVA Solutions Inc. is a provider of emulsion polymers, specialty chemicals and engineered surfaces for commercial, industrial and residential end uses. The Company’s segments include Performance Chemicals and Engineered Surfaces. The Performance Chemicals segment produces a range of emulsion polymers and specialty chemicals based on styrene butadiene, styrene butadiene acrylonitrile, styrene butadiene vinyl pyridine, nitrile butadiene, polyvinyl acetate, acrylic, styrene acrylic, vinyl acrylic, glyoxal, fluorochemical and bio-based chemistries. The Engineered Surfaces segment develops, designs, produces and markets a line of functional and decorative surfacing products, including coated fabrics, vinyl, paper, and specialty laminates and industrial films. The Performance Chemicals segment includes two product lines: Performance Materials and Specialty Chemicals, and the Engineered Surfaces segment includes two product lines: Coated Fabrics, and Laminates and Performance Films.
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