Rayonier Advanced Materials (RYAM) & Terravia Holdings (TVIA) Financial Analysis
Rayonier Advanced Materials (NYSE: RYAM) and Terravia Holdings (NASDAQ:TVIA) are both basic materials companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, risk, valuation, institutional ownership, earnings, analyst recommendations and profitability.
This table compares Rayonier Advanced Materials and Terravia Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Rayonier Advanced Materials||5.71%||24.17%||3.63%|
Institutional & Insider Ownership
93.5% of Rayonier Advanced Materials shares are owned by institutional investors. Comparatively, 43.4% of Terravia Holdings shares are owned by institutional investors. 2.1% of Rayonier Advanced Materials shares are owned by company insiders. Comparatively, 10.1% of Terravia Holdings shares are owned 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.
This is a breakdown of current ratings and recommmendations for Rayonier Advanced Materials and Terravia Holdings, as reported 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 target price of $18.80, indicating a potential upside of 37.23%. Terravia Holdings has a consensus target price of $1.50, indicating a potential upside of 3,659.40%. Given Terravia Holdings’ higher probable upside, analysts clearly believe Terravia Holdings is more favorable than Rayonier Advanced Materials.
Volatility & Risk
Rayonier Advanced Materials has a beta of 4.29, meaning that its stock price is 329% more volatile than the S&P 500. Comparatively, Terravia Holdings has a beta of 1.12, meaning that its stock price is 12% more volatile than the S&P 500.
Rayonier Advanced Materials pays an annual dividend of $0.28 per share and has a dividend yield of 2.0%. Terravia Holdings does not pay a dividend. Rayonier Advanced Materials pays out 35.0% of its earnings in the form of a dividend.
Valuation and Earnings
This table compares Rayonier Advanced Materials and Terravia Holdings’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Rayonier Advanced Materials||$840.05 million||0.71||$202.73 million||$0.80||17.13|
Rayonier Advanced Materials has higher revenue and earnings than Terravia Holdings. Terravia Holdings 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.
Rayonier Advanced Materials beats Terravia Holdings on 10 of the 13 factors compared between the two stocks.
Rayonier Advanced Materials Company Profile
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.
Terravia Holdings Company Profile
Solazyme, Inc. creates renewable oils and bioproducts. The Company’s technology uses microalgae in an industrial fermentation process to transform a range of plant-based sugars into triglyceride oils and other bioproducts. The Company offers Algenist, a skin and personal care product available at Sephora S.A. and its affiliates, QVC, Inc., SpaceNK Limited, select Nordstrom stores and ULTA Beauty. It offers intermediates/ingredients, such as Tailored oils, powdered oils, and other closely related products targeted at customers in the industrial products, food products and personal care products markets. The Company’s commercial focus is to sell oils, encapsulated oils and whole algal powdered products to companies that use them as intermediates and ingredients.
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