Rayonier Advanced Materials (NYSE:RYAM – Get Free Report) and CVR Partners (NYSE:UAN – Get Free Report) are both small-cap materials companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.
Institutional and Insider Ownership
68.6% of Rayonier Advanced Materials shares are owned by institutional investors. Comparatively, 43.8% of CVR Partners shares are owned by institutional investors. 3.2% of Rayonier Advanced Materials shares are owned by insiders. Comparatively, 0.4% of CVR Partners shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares Rayonier Advanced Materials and CVR Partners’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Rayonier Advanced Materials | -9.53% | -46.19% | -7.28% |
| CVR Partners | 23.67% | 51.56% | 15.70% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Rayonier Advanced Materials | 1 | 1 | 1 | 0 | 2.00 |
| CVR Partners | 0 | 0 | 1 | 0 | 3.00 |
Rayonier Advanced Materials currently has a consensus target price of $13.00, indicating a potential upside of 77.11%. Given Rayonier Advanced Materials’ higher possible upside, equities analysts plainly believe Rayonier Advanced Materials is more favorable than CVR Partners.
Volatility and Risk
Rayonier Advanced Materials has a beta of 1.84, indicating that its share price is 84% more volatile than the S&P 500. Comparatively, CVR Partners has a beta of 0.26, indicating that its share price is 74% less volatile than the S&P 500.
Earnings & Valuation
This table compares Rayonier Advanced Materials and CVR Partners”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Rayonier Advanced Materials | $1.47 billion | 0.34 | -$420.67 million | ($2.10) | -3.50 |
| CVR Partners | $606.04 million | 2.17 | $98.66 million | $15.16 | 8.21 |
CVR Partners has lower revenue, but higher earnings than Rayonier Advanced Materials. Rayonier Advanced Materials is trading at a lower price-to-earnings ratio than CVR Partners, indicating that it is currently the more affordable of the two stocks.
Summary
CVR Partners beats Rayonier Advanced Materials on 8 of the 13 factors compared between the two stocks.
About Rayonier Advanced Materials
Rayonier Advanced Materials Inc. manufactures and sells cellulose specialty products in the United States, China, Latin America, Canada, Japan, Europe, Latin America, other Asian countries, and internationally. It operates through High Purity Cellulose, Paperboard, and High-Yield Pulp segments. The company’s products include cellulose specialties, which are natural polymers that are used as raw materials to manufacture a range of consumer-oriented products, such as liquid crystal displays, impact-resistant plastics, thickeners for food products, pharmaceuticals, cosmetics, cigarette filters, high-tenacity rayon yarn for tires and industrial hoses, food casings, paints, and lacquers. It also offers commodity products, such as commodity viscose pulp used in woven applications, including rayon textiles for clothing and other fabrics, as well as in non-woven applications comprising baby wipes, cosmetic and personal wipes, industrial wipes, and mattress ticking; and absorbent materials consisting of fluff fibers that are used as an absorbent medium in disposable baby diapers, feminine hygiene products, incontinence pads, convalescent bed pads, industrial towels and wipes, and non-woven fabrics. In addition, the company provides paperboards for packaging, printing documents, brochures, promotional materials, paperback books and catalog covers, file folders, tags, and lottery tickets; and high-yield pulps to produces hardwood aspen, maple, and birch species for paperboard, packaging, printing and writing papers, and various other paper products. The company was founded in 1926 and is headquartered in Jacksonville, Florida.
About CVR Partners
CVR Partners, LP, together with its subsidiaries, engages in the production and sale of nitrogen fertilizer products in the United States. The company offers ammonia products for agricultural and industrial customers; and urea ammonium nitrate products to agricultural customers, as well as retailers and distributors. CVR GP, LLC serves as the general partner of the company. CVR Partners, LP was incorporated in 2007 and is based in Sugar Land, Texas. CVR Partners, LP is a subsidiary of CVR Energy, Inc.
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