H. B. Fuller (NYSE:FUL – Get Free Report) and Avient (NYSE:AVNT – Get Free Report) are both mid-cap materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, risk and analyst recommendations.
Institutional and Insider Ownership
95.9% of H. B. Fuller shares are held by institutional investors. Comparatively, 95.5% of Avient shares are held by institutional investors. 1.8% of H. B. Fuller shares are held by insiders. Comparatively, 0.9% of Avient shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares H. B. Fuller and Avient”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| H. B. Fuller | $3.47 billion | 0.79 | $151.97 million | $3.26 | 15.68 |
| Avient | $3.26 billion | 1.16 | $81.90 million | $1.85 | 22.30 |
H. B. Fuller has higher revenue and earnings than Avient. H. B. Fuller is trading at a lower price-to-earnings ratio than Avient, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a breakdown of recent ratings and recommmendations for H. B. Fuller and Avient, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| H. B. Fuller | 0 | 3 | 3 | 1 | 2.71 |
| Avient | 0 | 3 | 3 | 0 | 2.50 |
H. B. Fuller currently has a consensus price target of $67.86, suggesting a potential upside of 32.73%. Avient has a consensus price target of $46.71, suggesting a potential upside of 13.24%. Given H. B. Fuller’s stronger consensus rating and higher possible upside, research analysts plainly believe H. B. Fuller is more favorable than Avient.
Risk and Volatility
H. B. Fuller has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500. Comparatively, Avient has a beta of 1.29, meaning that its share price is 29% more volatile than the S&P 500.
Dividends
H. B. Fuller pays an annual dividend of $0.98 per share and has a dividend yield of 1.9%. Avient pays an annual dividend of $1.10 per share and has a dividend yield of 2.7%. H. B. Fuller pays out 30.1% of its earnings in the form of a dividend. Avient pays out 59.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. H. B. Fuller has raised its dividend for 57 consecutive years and Avient has raised its dividend for 1 consecutive years.
Profitability
This table compares H. B. Fuller and Avient’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| H. B. Fuller | 5.29% | 12.18% | 4.73% |
| Avient | 5.10% | 11.64% | 4.67% |
Summary
H. B. Fuller beats Avient on 13 of the 17 factors compared between the two stocks.
About H. B. Fuller
H.B. Fuller Company, together with its subsidiaries, formulates, manufactures, and markets adhesives, sealants, coatings, polymers, tapes, encapsulants, additives, and other specialty chemical products. It operates through three segments: Hygiene, Health and Consumable Adhesives; Engineering Adhesives; and Construction Adhesives. The Hygiene, Health and Consumable Adhesives segment produces and supplies specialty industrial adhesives, such as thermoplastic, thermoset, reactive, water-based, and solvent-based products for applications in various markets, including packaging, converting, nonwoven and hygiene, and health and beauty. The Engineering Adhesives segment produces and supplies high performance industrial adhesives comprising reactive, light cure, two-part liquids, polyurethane, silicone, film, and fast cure products to the durable assembly, performance wood and textile, transportation, electronics, clean energy, aerospace and defense, appliance, heavy machinery, and insulating glass markets. The Construction Adhesives segment provides products used for tile setting, commercial roofing, heating, ventilation, and air conditioning and insulation applications, as well as caulks and sealants for the consumer market and professional trade. The company sells its products directly to customers, as well as through distributors and retailers in the Americas, Europe, India, the Middle East, Africa, and the Asia Pacific. H.B. Fuller Company was founded in 1887 and is headquartered in Saint Paul, Minnesota.
About Avient
Avient Corporation operates as a formulator of material solutions in the United States, Canada, Mexico, Europe, South America, and Asia. It operates in two segments, Color, Additives and Inks; and Specialty Engineered Materials. The Color, Additives and Inks segment offers custom color and additive concentrates in solid and liquid form for thermoplastics, dispersions for thermosets, and specialty inks; custom-formulated liquid system, such as polyester, vinyl, natural rubber and latex, polyurethane, and silicone; and proprietary inks. Its products are used in medical and pharmaceutical devices, food packaging, personal care and cosmetics, transportation, building products, wire and cable, recreational and athletic apparel, construction and filtration, outdoor furniture, healthcare, textiles and appliances, and industrial markets. The Specialty Engineered Materials segment provides specialty polymer formulations, services, and solutions for designers, assemblers, and processors of thermoplastic materials. It sells its products through direct sales personnel, distributors, and commissioned sales agents. The company was formerly known as PolyOne Corporation and changed its name to Avient Corporation in June 2020. Avient Corporation was founded in 1885 and is headquartered in Avon Lake, Ohio.
Receive News & Ratings for H. B. Fuller Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for H. B. Fuller and related companies with MarketBeat.com's FREE daily email newsletter.
