American Vanguard (NYSE:AVD) and Kuraray (OTCMKTS:KURRY) Head-To-Head Contrast

Kuraray (OTCMKTS:KURRY) and American Vanguard (NYSE:AVD) are both materials companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, earnings, dividends, profitability, valuation and risk.

Volatility and Risk

Kuraray has a beta of 0.02, suggesting that its stock price is 98% less volatile than the S&P 500. Comparatively, American Vanguard has a beta of 1.43, suggesting that its stock price is 43% more volatile than the S&P 500.

Earnings and Valuation

This table compares Kuraray and American Vanguard”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kuraray	$5.41 billion	0.63	$50.04 million	$0.53	63.96
American Vanguard	$515.11 million	0.13	-$49.88 million	($1.90)	-1.23

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

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Kuraray and American Vanguard, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kuraray	1	0	0	0	1.00
American Vanguard	1	0	0	0	1.00

Institutional and Insider Ownership

79.0% of American Vanguard shares are held by institutional investors. 5.6% of American Vanguard shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Kuraray and American Vanguard’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Kuraray	0.92%	5.33%	3.07%
American Vanguard	-10.70%	-9.05%	-2.78%

Summary

Kuraray beats American Vanguard on 8 of the 11 factors compared between the two stocks.

About Kuraray

Kuraray Co., Ltd. engages in the production and sale of resins, chemicals, fibers, activated carbon, and high-performance membranes and systems worldwide. The Vinyl Acetate segment manufactures and markets functional resins and films, including PVA, PVB and EVAL. The Isoprene segment engages in the manufacture and marketing of SEPTON thermoplastic elastomer, isoprene-related products, and GENESTAR. The Functional Materials segment manufactures and markets methacrylic resin, medical products, and carbon materials. The Fibers and Textiles segment manufactures and sells synthetic fibers and textiles, CLARINO manmade leather, non-woven fabrics, and other products. The Trading segment mainly processes and sells synthetic fibers and manmade leathers. It is also involved in the engineering business; design and construction of various plants; outsourcing of logistics services; temporary staffing/introduction business; design, manufacture, construction, and sale of water treatment equipment; travel and insurance agency business; golf course management; management of accommodation facilities and restaurants; manufacture and sale of hook-and loop fasteners and related products; manufacture and sale of dental materials; warehousing and logistics; and manufacturing and sales of methacrylic resin sheets, as well as provides consulting services. The company was incorporated in 1926 and is headquartered in Tokyo, Japan.

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.