Comparing Avient (NYSE:AVNT) and Ecovyst (NYSE:ECVT)

Ecovyst (NYSE:ECVT) and Avient (NYSE:AVNT) are both materials companies, but which is the superior business? We will compare the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, profitability, risk, earnings and dividends.

Earnings and Valuation

This table compares Ecovyst and Avient”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ecovyst	$723.50 million	1.58	-$71.13 million	($0.53)	-19.74
Avient	$3.26 billion	1.28	$81.90 million	$1.95	23.36

Avient has higher revenue and earnings than Ecovyst. Ecovyst is trading at a lower price-to-earnings ratio than Avient, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Ecovyst and Avient’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ecovyst	3.72%	14.49%	6.51%
Avient	5.27%	12.17%	4.95%

Volatility & Risk

Ecovyst has a beta of 1.08, meaning that its stock price is 8% more volatile than the S&P 500. Comparatively, Avient has a beta of 1.23, meaning that its stock price is 23% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and price targets for Ecovyst and Avient, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ecovyst	1	1	4	1	2.71
Avient	0	4	3	0	2.43

Ecovyst currently has a consensus target price of $14.62, suggesting a potential upside of 39.80%. Avient has a consensus target price of $47.88, suggesting a potential upside of 5.12%. Given Ecovyst’s stronger consensus rating and higher possible upside, equities analysts plainly believe Ecovyst is more favorable than Avient.

Insider & Institutional Ownership

86.7% of Ecovyst shares are held by institutional investors. Comparatively, 95.5% of Avient shares are held by institutional investors. 1.8% of Ecovyst shares are held by company insiders. Comparatively, 0.9% of Avient shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Summary

Ecovyst beats Avient on 9 of the 15 factors compared between the two stocks.

About Ecovyst

Ecovyst Inc. offers specialty catalysts and services in the United States and internationally. The company operates in two segments, Ecoservices and Advanced Materials & Catalysts. The Ecoservices segment provides sulfuric acid recycling services and end-to-end logistics for production of alkylate for refineries; and virgin sulfuric acid for mining, water treatment, and industrial applications. The Advanced Materials & Catalysts segment offers advanced materials and specialty catalyst products and process solutions to producers and licensors of polyethylene and advanced silicas. This segment also supplies specialty zeolites and zeolite-based catalysts to customers for refining of oil primarily hydrocracking catalyst and dewaxing, sustainable fuels, and emission control systems for both on-road and non-road diesel engines. The company was formerly known as PQ Group Holdings Inc. and changed its name to Ecovyst Inc. in August 2021. Ecovyst Inc. was founded in 1831 and is headquartered in Malvern, Pennsylvania.

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.