Ashland Global Holdings (NYSE: ASH) and PURE Bioscience (OTCMKTS:PURE) are both basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, valuation, risk, earnings, analyst recommendations, dividends and institutional ownership.

Dividends

Ashland Global Holdings pays an annual dividend of $0.90 per share and has a dividend yield of 1.4%. PURE Bioscience does not pay a dividend. Ashland Global Holdings pays out -25.4% of its earnings in the form of a dividend. Ashland Global Holdings has raised its dividend for 7 consecutive years.

Volatility and Risk

Ashland Global Holdings has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500. Comparatively, PURE Bioscience has a beta of -1.61, meaning that its share price is 261% less volatile than the S&P 500.

Valuation & Earnings

This table compares Ashland Global Holdings and PURE Bioscience’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Ashland Global Holdings $5.06 billion 0.79 $719.00 million ($3.54) -18.08
PURE Bioscience $1.84 million 33.43 -$5.72 million ($0.08) -12.26

Ashland Global Holdings has higher revenue and earnings than PURE Bioscience. Ashland Global Holdings is trading at a lower price-to-earnings ratio than PURE Bioscience, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

92.5% of Ashland Global Holdings shares are held by institutional investors. Comparatively, 0.3% of PURE Bioscience shares are held by institutional investors. 1.3% of Ashland Global Holdings shares are held by company insiders. Comparatively, 16.4% of PURE Bioscience shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Ashland Global Holdings and PURE Bioscience’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ashland Global Holdings -4.71% 10.62% 3.70%
PURE Bioscience -276.96% -125.22% -74.90%

Analyst Ratings

This is a breakdown of current recommendations and price targets for Ashland Global Holdings and PURE Bioscience, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ashland Global Holdings 0 2 2 0 2.50
PURE Bioscience 0 0 0 0 N/A

Ashland Global Holdings currently has a consensus target price of $82.75, indicating a potential upside of 29.26%. Given Ashland Global Holdings’ higher possible upside, research analysts clearly believe Ashland Global Holdings is more favorable than PURE Bioscience.

Summary

Ashland Global Holdings beats PURE Bioscience on 12 of the 15 factors compared between the two stocks.

Ashland Global Holdings Company Profile

Ashland Inc. is engaged in specialty chemicals, and through Valvoline, is a consumer-branded lubricant supplier. The Company operates in three segments: Ashland Specialty Ingredients (Specialty Ingredients), Ashland Performance Materials (Performance Materials) and Valvoline. Its Specialty Ingredients segment is engaged in providing cellulose ethers, vinyl pyrrolidones and biofunctionals, and consists of two divisions: Consumer Specialties and Industrial Specialties. Its Performance Materials segment is engaged in providing unsaturated polyester resins and vinyl ester resins, and consists of two divisions: Composites and Intermediates/Solvents. Its Valvoline segment is engaged in producing and distributing automotive, commercial and industrial lubricants, and automotive chemicals. Its chemistry is used in various markets and applications, including architectural coatings, adhesives, automotive, construction, energy and pharmaceutical.

PURE Bioscience Company Profile

PURE Bioscience, Inc. is focused on developing and commercializing antimicrobial products that provide solutions to the health and environmental challenges of pathogen and hygienic control. The Company’s technology platform is based on stabilized ionic silver and its products contain silver dihydrogen citrate (SDC). It offers PURE Hard Surface as a food contact surface sanitizer and disinfectant to restaurant chains and food processors. It is testing and continuing development of PURE Control to utilize PURE Control as a direct food contact processing aid for raw meats, including beef and pork. In addition to PURE Hard Surface and PURE Control, it manufactures and sells SDC-based products for end use; products preserved with SDC, and SDC as a raw material ingredient for manufacturing use. These products include PURE Multi-Purpose and Floor Cleaner Concentrate, PURE Multi-Purpose Hi-Foam Cleaner Concentrate, Axen 30, Axenohl and SILVERION.

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