Avient (NYSE:AVNT) & Olin (NYSE:OLN) Critical Comparison

Olin (NYSE:OLN) and Avient (NYSE:AVNT) are both mid-cap basic materials companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, earnings, institutional ownership, profitability, valuation, dividends and risk.

Volatility & Risk

Olin has a beta of 1.79, meaning that its share price is 79% more volatile than the S&P 500. Comparatively, Avient has a beta of 1.48, meaning that its share price is 48% more volatile than the S&P 500.

Profitability

This table compares Olin and Avient’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Olin	0.79%	3.36%	0.89%
Avient	3.65%	10.57%	4.17%

Dividends

Olin pays an annual dividend of $0.80 per share and has a dividend yield of 3.9%. Avient pays an annual dividend of $1.10 per share and has a dividend yield of 3.6%. Olin pays out 173.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Avient pays out 89.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Avient has increased its dividend for 1 consecutive years.

Analyst Ratings

This is a summary of current ratings and target prices for Olin and Avient, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Olin	2	11	2	1	2.13
Avient	1	4	4	1	2.50

Olin presently has a consensus price target of $25.00, suggesting a potential upside of 22.31%. Avient has a consensus price target of $42.50, suggesting a potential upside of 39.46%. Given Avient’s stronger consensus rating and higher possible upside, analysts plainly believe Avient is more favorable than Olin.

Institutional and Insider Ownership

88.7% of Olin shares are held by institutional investors. Comparatively, 95.5% of Avient shares are held by institutional investors. 1.6% of Olin shares are held by insiders. Comparatively, 0.9% of Avient shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Olin and Avient”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Olin	$6.79 billion	0.34	$108.60 million	$0.46	44.43
Avient	$3.25 billion	0.86	$169.50 million	$1.23	24.78

Avient has lower revenue, but higher earnings than Olin. Avient is trading at a lower price-to-earnings ratio than Olin, indicating that it is currently the more affordable of the two stocks.

Summary

Avient beats Olin on 12 of the 17 factors compared between the two stocks.

About Olin

Olin Corporation manufactures and distributes chemical products in the United States, Europe, Asia Pacific, Latin America, and Canada. It operates through three segments: Chlor Alkali Products and Vinyls; Epoxy; and Winchester. The Chlor Alkali Products and Vinyls segment offers chlorine and caustic soda, ethylene dichloride and vinyl chloride monomers, methyl chloride, methylene chloride, chloroform, carbon tetrachloride, perchloroethylene, hydrochloric acid, hydrogen, bleach products, potassium hydroxide, and chlorinated organics intermediates and solvents. The Epoxy segment provides Allylics, such as allyl chloride, epichlorohydrin, and glycerin; aromatics, including acetone, bisphenol, cumene, and phenol; liquid and solid epoxy resins; and converted epoxy resins and additives. The Winchester segment offers sporting ammunition products, including shotshells, small caliber centerfire, and rimfire ammunition products for hunters and recreational shooters, and law enforcement agencies; small caliber military ammunition products for use in infantry and mounted weapons; and industrial products comprising gauge loads and powder-actuated tool loads for maintenance applications in power and concrete industries, and powder-actuated tools in construction industry. The company markets its products through its sales force, as well as directly to various industrial customers, mass merchants, retailers, wholesalers, gun clubs, other distributors, and the U.S. Government and its prime contractors. Olin Corporation was incorporated in 1892 and is based in Clayton, Missouri.

About Avient

Avient Corporation operates as a formulator of material solutions in the United States, Canada, Mexico, Europe, South America, and Asia. It operates in two segments, Color, Additives and Inks; and Specialty Engineered Materials. The Color, Additives and Inks segment offers custom color and additive concentrates in solid and liquid form for thermoplastics, dispersions for thermosets, and specialty inks; custom-formulated liquid system, such as polyester, vinyl, natural rubber and latex, polyurethane, and silicone; and proprietary inks. Its products are used in medical and pharmaceutical devices, food packaging, personal care and cosmetics, transportation, building products, wire and cable, recreational and athletic apparel, construction and filtration, outdoor furniture, healthcare, textiles and appliances, and industrial markets. The Specialty Engineered Materials segment provides specialty polymer formulations, services, and solutions for designers, assemblers, and processors of thermoplastic materials. It sells its products through direct sales personnel, distributors, and commissioned sales agents. The company was formerly known as PolyOne Corporation and changed its name to Avient Corporation in June 2020. Avient Corporation was founded in 1885 and is headquartered in Avon Lake, Ohio.