Head to Head Analysis: AdvanSix (NYSE:ASIX) versus Ecovyst (NYSE:ECVT)

Ecovyst (NYSE:ECVT) and AdvanSix (NYSE:ASIX) are both small-cap basic materials companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, profitability, earnings, analyst recommendations, institutional ownership, dividends and valuation.

Risk & Volatility

Ecovyst has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500. Comparatively, AdvanSix has a beta of 1.74, suggesting that its share price is 74% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ecovyst	-14.34%	8.93%	3.38%
AdvanSix	3.52%	7.14%	3.50%

Institutional & Insider Ownership

86.7% of Ecovyst shares are held by institutional investors. Comparatively, 86.4% of AdvanSix shares are held by institutional investors. 1.5% of Ecovyst shares are held by insiders. Comparatively, 5.6% of AdvanSix shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Ecovyst and AdvanSix, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ecovyst	1	1	4	0	2.50
AdvanSix	1	0	1	0	2.00

Ecovyst presently has a consensus price target of $11.60, indicating a potential upside of 16.17%. AdvanSix has a consensus price target of $33.50, indicating a potential upside of 92.91%. Given AdvanSix’s higher probable upside, analysts clearly believe AdvanSix is more favorable than Ecovyst.

Valuation and Earnings

This table compares Ecovyst and AdvanSix”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ecovyst	$704.50 million	1.62	-$6.65 million	($0.93)	-10.74
AdvanSix	$1.52 billion	0.31	$44.15 million	$1.92	9.04

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

Summary

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

About Ecovyst

Ecovyst Inc. offers specialty catalysts and services in the United States and internationally. The company operates in two segments, Ecoservices and Advanced Materials & Catalysts. The Ecoservices segment provides sulfuric acid recycling services and end-to-end logistics for production of alkylate for refineries; and virgin sulfuric acid for mining, water treatment, and industrial applications. The Advanced Materials & Catalysts segment offers advanced materials and specialty catalyst products and process solutions to producers and licensors of polyethylene and advanced silicas. This segment also supplies specialty zeolites and zeolite-based catalysts to customers for refining of oil primarily hydrocracking catalyst and dewaxing, sustainable fuels, and emission control systems for both on-road and non-road diesel engines. The company was formerly known as PQ Group Holdings Inc. and changed its name to Ecovyst Inc. in August 2021. Ecovyst Inc. was founded in 1831 and is headquartered in Malvern, Pennsylvania.

About AdvanSix

AdvanSix Inc. engages in the manufacture and sale of polymer resins in the United States and internationally. It offers Nylon 6, a polymer resin, which is a synthetic material used to produce fibers, filaments, engineered plastics, and films. The company also provides caprolactam to manufacture polymer resins; ammonium sulfate fertilizers to distributors, farm cooperatives, and retailers; and acetone that are used in the production of adhesives, paints, coatings, solvents, herbicides, and engineered plastic resins, as well as other intermediate chemicals, including phenol, monoisopropylamine, dipropylamine, monoallylamine, alpha-methylstyrene, cyclohexanone, methyl ethyl ketoxime, acetaldehyde oxime, 2-pentanone oxime, cyclohexanol, sulfuric acid, ammonia, and carbon dioxide. It offers its products under the Aegis, Capran, Sulf-N, Nadone, Naxol, and EZ-Blox brands. The company sells its products directly, as well as through distributors. AdvanSix Inc. was incorporated in 2016 and is headquartered in Parsippany, New Jersey.