Reviewing American Vanguard (NYSE:AVD) & 5E Advanced Materials (NASDAQ:FEAM)

American Vanguard (NYSE:AVDGet Free Report) and 5E Advanced Materials (NASDAQ:FEAMGet Free Report) are both small-cap basic materials companies, but which is the better stock? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, risk, profitability and institutional ownership.

Earnings and Valuation

This table compares American Vanguard and 5E Advanced Materials”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
American Vanguard $529.07 million 0.28 -$126.34 million ($4.47) -1.17
5E Advanced Materials N/A N/A -$31.56 million ($15.95) -0.35

5E Advanced Materials has lower revenue, but higher earnings than American Vanguard. American Vanguard is trading at a lower price-to-earnings ratio than 5E Advanced Materials, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

American Vanguard has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500. Comparatively, 5E Advanced Materials has a beta of 1.55, suggesting that its share price is 55% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for American Vanguard and 5E Advanced Materials, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Vanguard 1 0 1 0 2.00
5E Advanced Materials 1 1 2 0 2.25

American Vanguard currently has a consensus price target of $12.00, indicating a potential upside of 129.05%. 5E Advanced Materials has a consensus price target of $8.25, indicating a potential upside of 48.92%. Given American Vanguard’s higher possible upside, equities analysts plainly believe American Vanguard is more favorable than 5E Advanced Materials.

Profitability

This table compares American Vanguard and 5E Advanced Materials’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American Vanguard -23.72% -26.21% -9.97%
5E Advanced Materials N/A -158.79% -64.17%

Institutional and Insider Ownership

79.0% of American Vanguard shares are held by institutional investors. 7.6% of American Vanguard shares are held by company insiders. Comparatively, 0.5% of 5E Advanced Materials shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

American Vanguard beats 5E Advanced Materials on 7 of the 13 factors compared between the two stocks.

About American Vanguard

(Get Free Report)

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.

About 5E Advanced Materials

(Get Free Report)

5E Advanced Materials, Inc. engages in the exploration and development of mineral properties in Australia and the United States. The company primarily explores for borates and lithium deposits. It holds 100% interest in the Fort Cady project located in the Mojave Desert region in eastern San Bernardino County, California. The company was formerly known as American Pacific Borates Limited. The company was incorporated in 2016 and is based in Hesperia, California.

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