AdvanSix (NYSE:ASIX – Get Free Report) and Ingevity (NYSE:NGVT – Get Free Report) are both basic materials companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, earnings, profitability, valuation, risk and institutional ownership.
Profitability
This table compares AdvanSix and Ingevity’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| AdvanSix | 0.67% | 2.18% | 1.05% |
| Ingevity | -10.55% | 207.82% | 9.70% |
Analyst Ratings
This is a breakdown of current ratings and target prices for AdvanSix and Ingevity, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| AdvanSix | 1 | 2 | 0 | 0 | 1.67 |
| Ingevity | 1 | 2 | 2 | 0 | 2.20 |
Volatility & Risk
AdvanSix has a beta of 1.28, meaning that its share price is 28% more volatile than the S&P 500. Comparatively, Ingevity has a beta of 1.18, meaning that its share price is 18% more volatile than the S&P 500.
Institutional and Insider Ownership
86.4% of AdvanSix shares are owned by institutional investors. Comparatively, 91.6% of Ingevity shares are owned by institutional investors. 5.0% of AdvanSix shares are owned by insiders. Comparatively, 0.9% of Ingevity shares are owned by 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.
Valuation & Earnings
This table compares AdvanSix and Ingevity”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| AdvanSix | $1.52 billion | 0.36 | $49.29 million | $0.37 | 54.66 |
| Ingevity | $1.17 billion | 2.28 | -$167.10 million | ($3.55) | -21.54 |
AdvanSix has higher revenue and earnings than Ingevity. Ingevity 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 Ingevity on 8 of the 14 factors compared between the two stocks.
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.
About Ingevity
Ingevity Corporation manufactures and sells activated carbon products, derivative specialty chemicals, and engineered polymers in North America, the Asia Pacific, Europe, the Middle East, Africa, and South America. It operates through three segments: Performance Materials, Performance Chemicals, and Advanced Polymer Technologies. The Performance Materials segment engineers, manufactures, and sells hardwood-based and chemically activated carbon products for use in gasoline vapor emission control systems in cars, motorcycles, trucks, and boats. This segment also produces other activated carbon products for food, water, beverage, and chemical purification applications. The Performance Chemicals segment consists of road technologies and industrial specialties. This segment's products are used in pavement construction, pavement preservation, pavement reconstruction and recycling, road markings, agrochemical dispersants, paper chemicals, and other industrial uses. The Advanced Polymer Technologies segment produces caprolactone and caprolactone-based specialty polymers for use in coatings, resins, elastomers, adhesives, bioplastics, and medical devices. It serves automotive parts and components manufacturers through sales representatives and distributors. The company was formerly known as WestRock Company, Specialty Chemicals Business and changed its name to Ingevity Corporation in September 2015. Ingevity Corporation was founded in 1964 and is headquartered in North Charleston, South Carolina.
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