AdvanSix (NYSE: ASIX) is one of 47 publicly-traded companies in the “Specialty Chemicals” industry, but how does it contrast to its peers? We will compare AdvanSix to similar companies based on the strength of its dividends, earnings, risk, valuation, profitability, analyst recommendations and institutional ownership.

Institutional and Insider Ownership

71.4% of AdvanSix shares are held by institutional investors. Comparatively, 65.3% of shares of all “Specialty Chemicals” companies are held by institutional investors. 2.7% of AdvanSix shares are held by insiders. Comparatively, 7.4% of shares of all “Specialty Chemicals” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares AdvanSix and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AdvanSix 3.64% 20.30% 5.64%
AdvanSix Competitors -655.93% -4.23% 0.37%

Volatility & Risk

AdvanSix has a beta of 2.84, suggesting that its stock price is 184% more volatile than the S&P 500. Comparatively, AdvanSix’s peers have a beta of 1.37, suggesting that their average stock price is 37% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for AdvanSix and its peers, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AdvanSix 0 0 1 0 3.00
AdvanSix Competitors 172 1042 1315 24 2.47

AdvanSix currently has a consensus price target of $46.00, indicating a potential upside of 13.19%. As a group, “Specialty Chemicals” companies have a potential downside of 0.03%. Given AdvanSix’s stronger consensus rating and higher probable upside, analysts plainly believe AdvanSix is more favorable than its peers.

Earnings & Valuation

This table compares AdvanSix and its peers top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
AdvanSix $1.19 billion $34.14 million 25.72
AdvanSix Competitors $1.91 billion $115.75 million 230.91

AdvanSix’s peers have higher revenue and earnings than AdvanSix. AdvanSix is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

AdvanSix beats its peers on 8 of the 13 factors compared.

About AdvanSix

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.

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