American Vanguard (NYSE:AVD – Get Free Report) and Celanese (NYSE:CE – Get Free Report) are both basic materials companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, risk, analyst recommendations, earnings and profitability.
Insider & Institutional Ownership
79.0% of American Vanguard shares are held by institutional investors. Comparatively, 98.9% of Celanese shares are held by institutional investors. 7.6% of American Vanguard shares are held by company insiders. Comparatively, 0.3% of Celanese shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares American Vanguard and Celanese”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| American Vanguard | $529.07 million | 0.27 | -$126.34 million | ($4.47) | -1.13 |
| Celanese | $9.71 billion | 0.46 | -$1.52 billion | ($28.27) | -1.43 |
American Vanguard has higher earnings, but lower revenue than Celanese. Celanese is trading at a lower price-to-earnings ratio than American Vanguard, indicating that it is currently the more affordable of the two stocks.
Dividends
American Vanguard pays an annual dividend of $0.03 per share and has a dividend yield of 0.6%. Celanese pays an annual dividend of $0.12 per share and has a dividend yield of 0.3%. American Vanguard pays out -0.7% of its earnings in the form of a dividend. Celanese pays out -0.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. American Vanguard is clearly the better dividend stock, given its higher yield and lower payout ratio.
Profitability
This table compares American Vanguard and Celanese’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| American Vanguard | -23.72% | -26.21% | -9.97% |
| Celanese | -16.30% | 10.48% | 2.70% |
Analyst Ratings
This is a summary of recent ratings for American Vanguard and Celanese, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| American Vanguard | 1 | 0 | 1 | 0 | 2.00 |
| Celanese | 3 | 10 | 7 | 0 | 2.20 |
American Vanguard presently has a consensus price target of $12.00, indicating a potential upside of 137.06%. Celanese has a consensus price target of $54.78, indicating a potential upside of 35.07%. Given American Vanguard’s higher probable upside, analysts plainly believe American Vanguard is more favorable than Celanese.
Volatility & Risk
American Vanguard has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500. Comparatively, Celanese has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500.
About American Vanguard
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.
About Celanese
Celanese Corporation, a chemical and specialty materials company, manufactures and sells high performance engineered polymers in the United States and internationally. It operates through Engineered Materials and Acetyl Chain. The Engineered Materials segment develops, produces, and supplies specialty polymers for automotive and medical applications, as well as for use in industrial products and consumer electronics. The Acetyl Chain segment produces and supplies acetyl products, including acetic acid, vinyl acetate monomers, acetic anhydride, and acetate esters that are used as starting materials for colorants, paints, adhesives, coatings, and pharmaceuticals; and organic solvents and intermediates for pharmaceutical, agricultural, and chemical products. It also offers vinyl acetate-based emulsions for use in paints and coatings, adhesives, construction, glass fiber, textiles, and paper applications; and ethylene vinyl acetate resins and compounds, as well as low-density polyethylene for use in flexible packaging films, lamination film products, hot melt adhesives, automotive parts, and carpeting applications. In addition, it provides redispersible powders (RDP) for use in construction applications, including flooring, plasters, insulation, tiling, and waterproofing. Celanese Corporation was founded in 1918 and is headquartered in Irving, Texas.
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