AgroFresh Solutions (NASDAQ:AGFS) and HL Acquisition (NASDAQ:HCCH) are both small-cap basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, dividends, valuation, earnings, profitability, risk and institutional ownership.

Analyst Ratings

This is a summary of recent recommendations for AgroFresh Solutions and HL Acquisition, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AgroFresh Solutions 0 1 4 0 2.80
HL Acquisition 0 0 0 0 N/A

AgroFresh Solutions presently has a consensus target price of $5.08, suggesting a potential upside of 238.67%. Given AgroFresh Solutions’ higher probable upside, equities research analysts plainly believe AgroFresh Solutions is more favorable than HL Acquisition.

Earnings and Valuation

This table compares AgroFresh Solutions and HL Acquisition’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AgroFresh Solutions $178.79 million 0.43 -$30.06 million ($0.56) -2.68
HL Acquisition N/A N/A N/A N/A N/A

HL Acquisition has lower revenue, but higher earnings than AgroFresh Solutions.

Profitability

This table compares AgroFresh Solutions and HL Acquisition’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AgroFresh Solutions -18.44% -8.62% -3.48%
HL Acquisition N/A 16.71% 1.49%

Institutional & Insider Ownership

81.8% of AgroFresh Solutions shares are owned by institutional investors. Comparatively, 47.3% of HL Acquisition shares are owned by institutional investors. 1.6% of AgroFresh Solutions shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

AgroFresh Solutions beats HL Acquisition on 5 of the 8 factors compared between the two stocks.

About AgroFresh Solutions

AgroFresh Solutions, Inc. provides data-driven solutions worldwide. The company uses 1-Methylcyclopropene technology, an ethylene action inhibitor to maintain freshness and extend the shelf life of various fresh produce. Its solutions enable growers and packers of fresh produce to preserve and enhance the freshness, quality, and value of fresh produce, including apples, pears, kiwifruit, plums, persimmons avocados, and bananas, as well as flowers. The company's flagship product is the SmartFresh system that regulates the post-harvest ripening effects of ethylene to preserve the texture, firmness, taste, and appearance of produce during storage, transportation, and retail display. It also provides Harvista technology for use in pre-harvest management of pome fruit, apples, pears, cherries, and blueberries. In addition, the company is developing RipeLock Quality System, a proprietary technology that extends the shelf life of bananas; FreshCloud, a suite of monitoring and screening solutions; and LandSpring, a technology that minimizes stress induced ethylene effects in vegetable seedling transplants allowing for post-transplant vigor. The company was formerly known as Boulevard Acquisition Corp. and changed its name to AgroFresh Solutions, Inc. in July 2015. AgroFresh Solutions, Inc. is headquartered in Philadelphia, Pennsylvania.

About HL Acquisition

HL Acquisition Corp. does not have significant operations. It intends to acquire, engage in a share exchange, share reconstruction and amalgamation with, purchase all or substantially all of the assets of, enter into contractual arrangements with, or engage in any other similar business combination with one or more businesses or entities. The company was founded in 2018 and is based in New York, New York.

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