Contrasting American Vanguard (NYSE:AVD) & Green Plains (NASDAQ:GPRE)

Green Plains (NASDAQ:GPREGet Free Report) and American Vanguard (NYSE:AVDGet Free Report) are both small-cap basic materials companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.

Profitability

This table compares Green Plains and American Vanguard’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Green Plains -5.80% -8.70% -4.21%
American Vanguard -9.68% -5.13% -1.76%

Volatility & Risk

Green Plains has a beta of 1.24, indicating that its stock price is 24% more volatile than the S&P 500. Comparatively, American Vanguard has a beta of 1.48, indicating that its stock price is 48% more volatile than the S&P 500.

Institutional and Insider Ownership

79.0% of American Vanguard shares are held by institutional investors. 1.0% of Green Plains shares are held by insiders. Comparatively, 7.6% of American Vanguard shares are held by 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 & Valuation

This table compares Green Plains and American Vanguard”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Green Plains $2.09 billion 0.59 -$121.28 million ($1.89) -9.40
American Vanguard $515.11 million 0.19 -$49.88 million ($1.75) -1.66

American Vanguard has lower revenue, but higher earnings than Green Plains. Green Plains is trading at a lower price-to-earnings ratio than American Vanguard, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent recommendations and price targets for Green Plains and American Vanguard, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Green Plains 2 4 3 0 2.11
American Vanguard 1 0 1 0 2.00

Green Plains currently has a consensus price target of $13.57, indicating a potential downside of 23.58%. American Vanguard has a consensus price target of $12.00, indicating a potential upside of 313.79%. Given American Vanguard’s higher possible upside, analysts clearly believe American Vanguard is more favorable than Green Plains.

Summary

American Vanguard beats Green Plains on 9 of the 14 factors compared between the two stocks.

About Green Plains

(Get Free Report)

Green Plains Inc. produces low-carbon fuels in the United States and internationally. It operates through three segments: Ethanol Production, Agribusiness and Energy Services, and Partnership. The Ethanol Production segment produces ethanol, distillers grains, and ultra-high protein and renewable corn oil. The Agribusiness and Energy Services segment engages in the grain procurement, handling and storage, commodity marketing business; and trading of ethanol, distiller grains, renewable corn oil, grain, natural gas, and other commodities in various markets. This segment also provides grain drying and storage services to grain producers. The Partnership segment offers fuel storage and transportation services. It operates 24 ethanol storage facilities; two fuel terminal facilities; and a fleet of approximately 2,180 leased railcars. The company was formerly known as Green Plains Renewable Energy, Inc. and changed its name to Green Plains Inc. in May 2014. Green Plains Inc. was incorporated in 2004 and is headquartered in Omaha, Nebraska.

About American Vanguard

(Get Free Report)

American Vanguard Corporation, through its subsidiaries, develops, manufactures, and markets specialty chemicals for agricultural, commercial, and consumer uses in the United States and internationally. It manufactures and formulates chemicals, including insecticides, fungicides, herbicides, soil health, plant nutrition, molluscicides, growth regulators, soil fumigants, and biorationals in liquid, powder, and granular forms for crops, turf and ornamental plants, and human and animal health protection. The company also markets, sells, and distributes end-use chemical and biological products for crop applications; and distributes chemicals for turf and ornamental markets. It distributes its products through national distribution companies, and buying groups or co-operatives; and through sales offices, sales force executives, sales agents, and wholly owned distributors. American Vanguard Corporation was incorporated in 1969 and is headquartered in Newport Beach, California.

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