Critical Contrast: Sensient Technologies Corporation (SXT) and AdvanSix (ASIX)

Sensient Technologies Corporation (NYSE: SXT) and AdvanSix (NASDAQ:ASIX) are both basic materials companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, earnings, analyst recommendations, institutional ownership, profitability, dividends and risk.

Profitability

This table compares Sensient Technologies Corporation and AdvanSix’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sensient Technologies Corporation 8.16% 17.15% 8.75%
AdvanSix 7.13% 40.03% 11.07%

Analyst Ratings

This is a breakdown of recent recommendations for Sensient Technologies Corporation and AdvanSix, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sensient Technologies Corporation 0 0 2 0 3.00
AdvanSix 0 0 1 0 3.00

Sensient Technologies Corporation currently has a consensus price target of $89.15, suggesting a potential upside of 13.93%. AdvanSix has a consensus price target of $46.00, suggesting a potential upside of 6.58%. Given Sensient Technologies Corporation’s higher probable upside, equities research analysts clearly believe Sensient Technologies Corporation is more favorable than AdvanSix.

Insider & Institutional Ownership

89.0% of Sensient Technologies Corporation shares are held by institutional investors. 1.0% of Sensient Technologies Corporation shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Sensient Technologies Corporation and AdvanSix’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Sensient Technologies Corporation $1.36 billion 2.52 $247.07 million $2.48 31.55
AdvanSix $1.32 billion 1.00 $135.96 million N/A N/A

Sensient Technologies Corporation has higher revenue and earnings than AdvanSix.

Dividends

Sensient Technologies Corporation pays an annual dividend of $1.20 per share and has a dividend yield of 1.5%. AdvanSix does not pay a dividend. Sensient Technologies Corporation pays out 48.4% of its earnings in the form of a dividend. Sensient Technologies Corporation has increased its dividend for 5 consecutive years.

Summary

Sensient Technologies Corporation beats AdvanSix on 11 of the 14 factors compared between the two stocks.

About Sensient Technologies Corporation

Sensient Technologies Corporation is a manufacturer and marketer of colors, flavors and fragrances. The Company uses technologies at facilities around the world to develop specialty food and beverage systems, cosmetic and pharmaceutical systems, specialty inks and colors, and other specialty and fine chemicals. The Company’s three segments include the Flavors & Fragrances Group and the Color Group, which are managed on a product-and-services basis, and the Asia Pacific Group, which is managed on a geographic basis. The Company’s principal products include flavors, flavor enhancers and bionutrients; fragrances, aroma chemicals and essential oils; natural ingredients, including dehydrated vegetables and other food ingredients; natural and synthetic food and beverage colors; cosmetic colors and ingredients and pharmaceutical excipients and ingredients, and technical colors, specialty inks and colors, and specialty dyes and pigments.

About AdvanSix

AdvanSix Inc. is an integrated manufacturer of Nylon 6. The Company also sells a variety of other products, all of which are produced as part of the Nylon 6 resin manufacturing process primarily, including caprolactam, ammonium sulfate fertilizers and other chemical intermediates. The Company operates primarily through its integrated manufacturing sites located in Frankford, Pennsylvania, Hopewell, Virginia, and Chesterfield, Virginia. The Company offers ammonium sulfate, which is used by customers as a nitrogen-based fertilizer. It produces ammonium sulfate fertilizer as part of its manufacturing process. The Company manufactures ammonium sulfate fertilizers including Sulf-N and Sulf-N 26. The Company provides AdvanSix Aegis nylon resins and Aegis barrier nylon resins. Its nylon resins are a preferred choice in food, liquid, and consumer packaging along with mono/multifilament products, carpet fibers, automotive compounding and more. It offers Capran biaxially oriented nylon films.

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