Contrasting Aspen Aerogels (NYSE:ASPN) and Bachem (OTCMKTS:BCHMF)

Aspen Aerogels (NYSE:ASPN) and Bachem (OTCMKTS:BCHMF) are both materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.

Institutional & Insider Ownership

97.6% of Aspen Aerogels shares are owned by institutional investors. 3.0% of Aspen Aerogels shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Aspen Aerogels and Bachem”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aspen Aerogels	$271.10 million	1.60	-$389.55 million	($1.53)	-3.41
Bachem	N/A	N/A	N/A	N/A	N/A

Bachem has lower revenue, but higher earnings than Aspen Aerogels.

Profitability

This table compares Aspen Aerogels and Bachem’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Aspen Aerogels	-62.45%	-31.12%	-17.33%
Bachem	N/A	N/A	N/A

Analyst Ratings

This is a breakdown of current ratings and price targets for Aspen Aerogels and Bachem, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aspen Aerogels	2	1	4	0	2.29
Bachem	1	0	3	0	2.50

Aspen Aerogels currently has a consensus target price of $5.94, suggesting a potential upside of 13.66%. Given Aspen Aerogels’ higher possible upside, equities analysts clearly believe Aspen Aerogels is more favorable than Bachem.

Summary

Aspen Aerogels beats Bachem on 5 of the 9 factors compared between the two stocks.

About Aspen Aerogels

Aspen Aerogels, Inc. designs, develops, manufactures, and sells aerogel insulation products primarily for use in the energy infrastructure and sustainable insulation materials markets in the United States, Asia, Canada, Europe, and Latin America. It operates in two segments, Energy Industrial and Thermal Barrier. The company offers PyroThin thermal barriers for use in lithium-ion batteries in electric vehicles and energy storage industries; Pyrogel XTE that reduces the risk of corrosion under insulation in energy infrastructure operating systems; and Pyrogel HPS for applications within the power generation market. It also offers Pyrogel XTF to provide protection against fire; Cryogel Z for sub-ambient and cryogenic applications in the energy infrastructure market; Spaceloft Subsea for use in pipe-in-pipe applications in offshore oil production; and Cryogel X201, which is used in designing cold systems, such as refrigerated appliances, cold storage equipment, and aerospace systems. The company was founded in 2001 and is headquartered in Northborough, Massachusetts.

About Bachem

Bachem Holding AG, together with its subsidiaries, provides products for research, clinical development, and commercial application to pharmaceutical and biotechnology companies worldwide. The company engages in the development, production, and regulatory support of peptide active pharmaceutical ingredients, such as peptide and oligonucleotide new chemical entities (NCEs). It also offers commercial NCEs and generics; and project management, quality and regulatory, analytical, good manufacturing practice production, research grade production, and supply and vertical integration services. Bachem Holding AG was founded in 1971 and is headquartered in Bubendorf, Switzerland.