Oil-Dri Corporation Of America (NYSE:ODC – Get Free Report) and Avient (NYSE:AVNT – Get Free Report) are both basic materials companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, profitability, valuation, institutional ownership, analyst recommendations, risk and dividends.
Profitability
This table compares Oil-Dri Corporation Of America and Avient’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Oil-Dri Corporation Of America | 11.12% | 22.36% | 14.74% |
| Avient | 3.65% | 10.57% | 4.17% |
Risk and Volatility
Oil-Dri Corporation Of America has a beta of 0.68, indicating that its share price is 32% less volatile than the S&P 500. Comparatively, Avient has a beta of 1.48, indicating that its share price is 48% more volatile than the S&P 500.
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Oil-Dri Corporation Of America | $485.57 million | 1.72 | $54.00 million | $3.70 | 15.41 |
| Avient | $3.25 billion | 0.85 | $169.50 million | $1.23 | 24.39 |
Avient has higher revenue and earnings than Oil-Dri Corporation Of America. Oil-Dri Corporation Of America 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 summary of current recommendations and price targets for Oil-Dri Corporation Of America and Avient, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Oil-Dri Corporation Of America | 0 | 0 | 1 | 0 | 3.00 |
| Avient | 1 | 4 | 4 | 1 | 2.50 |
Avient has a consensus price target of $42.50, indicating a potential upside of 41.67%. Given Avient’s higher probable upside, analysts clearly believe Avient is more favorable than Oil-Dri Corporation Of America.
Insider and Institutional Ownership
49.0% of Oil-Dri Corporation Of America shares are held by institutional investors. Comparatively, 95.5% of Avient shares are held by institutional investors. 11.7% of Oil-Dri Corporation Of America shares are held by company insiders. Comparatively, 0.9% of Avient shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Dividends
Oil-Dri Corporation Of America pays an annual dividend of $0.72 per share and has a dividend yield of 1.3%. Avient pays an annual dividend of $1.10 per share and has a dividend yield of 3.7%. Oil-Dri Corporation Of America pays out 19.5% of its earnings in the form of a dividend. Avient pays out 89.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Oil-Dri Corporation Of America has raised its dividend for 11 consecutive years and Avient has raised its dividend for 1 consecutive years.
About Oil-Dri Corporation Of America
Oil-Dri Corporation of America is a manufacturer and supplier of specialty sorbent products for the pet care, animal health and nutrition, fluids purification, agricultural ingredients, sports field, industrial and automotive markets. It operates through the Business to Business Products Group and Retail and Wholesale Products Group segments. The Business to Business Products Group segment’s customers include processors and refiners of edible oils, jet fuel and biofuel, manufacturers of animal feed and agricultural chemicals, distributors of animal health and nutrition products, and marketers of consumer products. The Retail and Wholesale Products Group segment customers include retailers of cat litter and related accessories such as mass merchandisers, drugstore chains, pet specialty retail outlets, dollar stores, retail grocery stores as well as distributors of industrial cleanup and automotive products, environmental service companies, and sports field product users. The company was founded by Nick Jaffee in 1941 and is headquartered in Chicago, IL.
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.
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