AdvanSix (ASIX) & Its Peers Head to Head Analysis

AdvanSix (NYSE:ASIX) is one of 295 publicly-traded companies in the “Chemicals” industry, but how does it compare to its peers? We will compare AdvanSix to similar companies based on the strength of its dividends, valuation, profitability, institutional ownership, risk, analyst recommendations and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
AdvanSix	-1.40%	-2.29%	-1.08%
AdvanSix Competitors	-59.67%	0.26%	-1.43%

Analyst Ratings

This is a summary of recent recommendations for AdvanSix and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
AdvanSix	1	2	0	0	1.67
AdvanSix Competitors	3250	12221	14141	519	2.40

AdvanSix currently has a consensus target price of $20.50, suggesting a potential upside of 31.28%. As a group, “Chemicals” companies have a potential upside of 8.06%. Given AdvanSix’s higher probable upside, research analysts clearly believe AdvanSix is more favorable than its peers.

Earnings and Valuation

This table compares AdvanSix and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
AdvanSix	$1.52 billion	$49.29 million	-18.59
AdvanSix Competitors	$6.36 billion	$222.31 million	10.00

AdvanSix’s peers have higher revenue and earnings than AdvanSix. AdvanSix is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Risk and Volatility

AdvanSix has a beta of 1.27, meaning that its stock price is 27% more volatile than the S&P 500. Comparatively, AdvanSix’s peers have a beta of 0.93, meaning that their average stock price is 7% less volatile than the S&P 500.

Dividends

AdvanSix pays an annual dividend of $0.64 per share and has a dividend yield of 4.1%. AdvanSix pays out -76.2% of its earnings in the form of a dividend. As a group, “Chemicals” companies pay a dividend yield of 3.1% and pay out 103.5% of their earnings in the form of a dividend. AdvanSix has raised its dividend for 2 consecutive years. AdvanSix is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Institutional & Insider Ownership

86.4% of AdvanSix shares are owned by institutional investors. Comparatively, 48.0% of shares of all “Chemicals” companies are owned by institutional investors. 5.0% of AdvanSix shares are owned by insiders. Comparatively, 13.9% of shares of all “Chemicals” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

About AdvanSix

AdvanSix Inc. engages in the manufacture and sale of polymer resins in the United States and internationally. It offers Nylon 6, a polymer resin, which is a synthetic material used to produce fibers, filaments, engineered plastics, and films. The company also provides caprolactam to manufacture polymer resins; ammonium sulfate fertilizers to distributors, farm cooperatives, and retailers; and acetone that are used in the production of adhesives, paints, coatings, solvents, herbicides, and engineered plastic resins, as well as other intermediate chemicals, including phenol, monoisopropylamine, dipropylamine, monoallylamine, alpha-methylstyrene, cyclohexanone, methyl ethyl ketoxime, acetaldehyde oxime, 2-pentanone oxime, cyclohexanol, sulfuric acid, ammonia, and carbon dioxide. It offers its products under the Aegis, Capran, Sulf-N, Nadone, Naxol, and EZ-Blox brands. The company sells its products directly, as well as through distributors. AdvanSix Inc. was incorporated in 2016 and is headquartered in Parsippany, New Jersey.