Quaker Houghton (NYSE:KWR – Get Free Report) and American Vanguard (NYSE:AVD – Get Free Report) are both materials companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, risk, analyst recommendations and valuation.
Earnings & Valuation
This table compares Quaker Houghton and American Vanguard”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Quaker Houghton | $1.89 billion | 1.43 | -$2.49 million | $5.61 | 27.88 |
| American Vanguard | $515.11 million | 0.13 | -$49.88 million | ($1.90) | -1.15 |
Risk and Volatility
Quaker Houghton has a beta of 1.4, suggesting that its share price is 40% more volatile than the S&P 500. Comparatively, American Vanguard has a beta of 1.43, suggesting that its share price is 43% more volatile than the S&P 500.
Profitability
This table compares Quaker Houghton and American Vanguard’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Quaker Houghton | 4.94% | 9.55% | 4.66% |
| American Vanguard | -10.70% | -9.05% | -2.78% |
Analyst Recommendations
This is a summary of current ratings and target prices for Quaker Houghton and American Vanguard, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Quaker Houghton | 0 | 1 | 4 | 1 | 3.00 |
| American Vanguard | 1 | 0 | 0 | 0 | 1.00 |
Quaker Houghton currently has a consensus target price of $187.00, suggesting a potential upside of 19.58%. Given Quaker Houghton’s stronger consensus rating and higher probable upside, equities analysts clearly believe Quaker Houghton is more favorable than American Vanguard.
Institutional & Insider Ownership
77.5% of Quaker Houghton shares are owned by institutional investors. Comparatively, 79.0% of American Vanguard shares are owned by institutional investors. 1.0% of Quaker Houghton shares are owned by company insiders. Comparatively, 5.6% of American Vanguard shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Summary
Quaker Houghton beats American Vanguard on 12 of the 15 factors compared between the two stocks.
About Quaker Houghton
Quaker Chemical Corporation, together with its subsidiaries, develops, produces, and markets various formulated specialty chemical products for a range of heavy industrial and manufacturing applications in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It offers metal removal fluids, cleaning fluids, corrosion inhibitors, metal drawing and forming fluids, die-cast mold releases, heat treatment and quenchants, metal forging fluids, hydraulic fluids, specialty greases, offshore sub-sea energy control fluids, rolling lubricants, rod and wire drawing fluids, and surface treatment chemicals. The company also provides chemical management services. It serves steel, aluminum, automotive, aerospace, offshore, container, mining, and metalworking companies. The company was founded in 1918 and is headquartered in Conshohocken, Pennsylvania.
About American Vanguard
American Vanguard Corporation, through its subsidiaries, develops, manufactures, and markets specialty chemicals for agricultural, commercial, and consumer uses in the United States and internationally. It manufactures and formulates chemicals, including insecticides, fungicides, herbicides, soil health, plant nutrition, molluscicides, growth regulators, soil fumigants, and biorationals in liquid, powder, and granular forms for crops, turf and ornamental plants, and human and animal health protection. The company also markets, sells, and distributes end-use chemical and biological products for crop applications; and distributes chemicals for turf and ornamental markets. It distributes its products through national distribution companies, and buying groups or co-operatives; and through sales offices, sales force executives, sales agents, and wholly owned distributors. American Vanguard Corporation was incorporated in 1969 and is headquartered in Newport Beach, California.
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