Critical Survey: Avantor (AVTR) and The Competition

Avantor (NYSE:AVTR – Get Free Report) is one of 109 public companies in the “Life Sciences Tools & Services” industry, but how does it contrast to its peers? We will compare Avantor to related companies based on the strength of its dividends, earnings, profitability, risk, analyst recommendations, institutional ownership and valuation.

Risk and Volatility

Avantor has a beta of 0.94, meaning that its share price is 6% less volatile than the S&P 500. Comparatively, Avantor’s peers have a beta of 1.14, meaning that their average share price is 14% more volatile than the S&P 500.

Profitability

This table compares Avantor and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Avantor 5.08% 9.79% 4.74%
Avantor Competitors -540.73% -166.48% -13.59%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Avantor and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Avantor 1 14 2 0 2.06
Avantor Competitors 947 3159 5473 177 2.50

Avantor presently has a consensus target price of $14.77, indicating a potential downside of 5.43%. As a group, “Life Sciences Tools & Services” companies have a potential downside of 1.75%. Given Avantor’s peers stronger consensus rating and higher possible upside, analysts plainly believe Avantor has less favorable growth aspects than its peers.

Insider and Institutional Ownership

95.1% of Avantor shares are held by institutional investors. Comparatively, 54.9% of shares of all “Life Sciences Tools & Services” companies are held by institutional investors. 0.3% of Avantor shares are held by company insiders. Comparatively, 15.0% of shares of all “Life Sciences Tools & Services” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Avantor and its peers gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Avantor $6.55 billion -$530.20 million 31.23
Avantor Competitors $2.30 billion $55.11 billion -13.27

Avantor has higher revenue, but lower earnings than its peers. Avantor is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Summary

Avantor peers beat Avantor on 7 of the 13 factors compared.

Avantor Company Profile

(Get Free Report)

Avantor, Inc. engages in the provision of mission-critical products and services to customers in the biopharma, healthcare, education and government, advanced technologies, and applied materials industries in the Americas, Europe, Asia, the Middle East, and Africa. The company offers materials and consumables, such as purity chemicals and reagents, lab products and supplies, formulated silicone materials, customized excipients, customized single-use assemblies, process chromatography resins and columns, analytical sample prep kits, education and microbiology products, clinical trial kits, peristaltic pumps, and fluid handling tips. It also provides equipment and instrumentation products, including filtration systems, virus inactivation systems, incubators, analytical instruments, evaporators, ultra-low-temperature freezers, biological safety cabinets, and critical environment supplies. In addition, the company offers services and specialty procurements comprising onsite lab and production, clinical, equipment, procurement and sourcing, and biopharmaceutical material scale-up and development services. Further, it provides scientific research support services, such as DNA extraction, bioreactor servicing, clinical and biorepository, and compound management services. The company was founded in 1904 and is headquartered in Radnor, Pennsylvania.

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