AdvanSix (NASDAQ: ASIX) and Trinseo (NYSE:TSE) are both basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, dividends, risk, institutional ownership, valuation, profitability and analyst recommendations.

Valuation & Earnings

This table compares AdvanSix and Trinseo’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
AdvanSix $1.32 billion 0.84 $135.96 million N/A N/A
Trinseo $4.10 billion 0.73 $477.25 million $7.08 9.60

Trinseo has higher revenue and earnings than AdvanSix.

Insider and Institutional Ownership

97.8% of Trinseo shares are owned by institutional investors. 0.7% of Trinseo shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings for AdvanSix and Trinseo, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AdvanSix 0 0 1 0 3.00
Trinseo 0 2 3 0 2.60

AdvanSix presently has a consensus target price of $40.00, suggesting a potential upside of 9.44%. Trinseo has a consensus target price of $74.25, suggesting a potential upside of 9.19%. Given AdvanSix’s stronger consensus rating and higher probable upside, research analysts plainly believe AdvanSix is more favorable than Trinseo.

Dividends

Trinseo pays an annual dividend of $1.44 per share and has a dividend yield of 2.1%. AdvanSix does not pay a dividend. Trinseo pays out 20.3% of its earnings in the form of a dividend.

Profitability

This table compares AdvanSix and Trinseo’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AdvanSix 7.13% 40.03% 11.07%
Trinseo 7.88% 67.05% 13.27%

Summary

Trinseo beats AdvanSix on 9 of the 14 factors compared between the two stocks.

AdvanSix Company Profile

AdvanSix Inc. is an integrated manufacturer of Nylon 6. The Company also sells a variety of other products, all of which are produced as part of the Nylon 6 resin manufacturing process primarily, including caprolactam, ammonium sulfate fertilizers and other chemical intermediates. The Company operates primarily through its integrated manufacturing sites located in Frankford, Pennsylvania, Hopewell, Virginia, and Chesterfield, Virginia. The Company offers ammonium sulfate, which is used by customers as a nitrogen-based fertilizer. It produces ammonium sulfate fertilizer as part of its manufacturing process. The Company manufactures ammonium sulfate fertilizers including Sulf-N and Sulf-N 26. The Company provides AdvanSix Aegis nylon resins and Aegis barrier nylon resins. Its nylon resins are a preferred choice in food, liquid, and consumer packaging along with mono/multifilament products, carpet fibers, automotive compounding and more. It offers Capran biaxially oriented nylon films.

Trinseo Company Profile

Trinseo S.A. is a materials company engaged in the manufacture and marketing of synthetic rubber, latex and plastics. The Company’s segments include Latex Binders, Synthetic Rubber, Performance Plastics, Basic Plastics, Feedstocks and Americas Styrenics. The Latex Binders segment produces styrene-butadiene latex (SB latex) and other latex polymers and binders. The Synthetic Rubber segment produces synthetic rubber products used in tires, impact modifiers and technical rubber products. The Performance Plastics segment produces compounds and blends and specialized acrylonitrile-butadiene-styrene (ABS) grades. The Basic Plastics segment produces styrenic polymers, including polystyrene, basic ABS, and styrene-acrylonitrile (SAN) products, as well as polycarbonate (PC). The Feedstocks segment includes its production and procurement of styrene monomer outside of North America. The Americas Styrenics segment consists of the operations of its joint venture, Americas Styrenics LLC.

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