Mativ (NYSE:MATV – Get Free Report) and American Vanguard (NYSE:AVD – Get Free Report) are both small-cap basic materials companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, risk, profitability, valuation, earnings and dividends.
Institutional and Insider Ownership
95.0% of Mativ shares are owned by institutional investors. Comparatively, 79.0% of American Vanguard shares are owned by institutional investors. 1.0% of Mativ shares are owned by company insiders. Comparatively, 7.6% of American Vanguard shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares Mativ and American Vanguard”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Mativ | $1.98 billion | 0.34 | -$48.70 million | ($8.03) | -1.56 |
| American Vanguard | $547.31 million | 0.20 | -$126.34 million | ($3.98) | -0.98 |
Mativ has higher revenue and earnings than American Vanguard. Mativ 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 breakdown of recent ratings and price targets for Mativ and American Vanguard, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Mativ | 1 | 1 | 1 | 0 | 2.00 |
| American Vanguard | 1 | 0 | 1 | 0 | 2.00 |
Mativ presently has a consensus target price of $10.00, indicating a potential downside of 19.94%. American Vanguard has a consensus target price of $12.00, indicating a potential upside of 208.72%. Given American Vanguard’s higher possible upside, analysts plainly believe American Vanguard is more favorable than Mativ.
Risk and Volatility
Mativ has a beta of 0.86, suggesting that its share price is 14% less volatile than the S&P 500. Comparatively, American Vanguard has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500.
Profitability
This table compares Mativ and American Vanguard’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Mativ | -22.03% | 7.06% | 1.73% |
| American Vanguard | -21.15% | -23.15% | -8.20% |
About Mativ
Mativ Holdings, Inc., together with its subsidiaries, manufactures and sells specialty materials in the United States, Europe, the Asia Pacific, the Americas, and internationally. The company operates through two segments, Advanced Technical Materials and Fiber-Based Solutions. The Advanced Technical Materials manufactures and sells various engineered polymer, resin and fiber-based substrates, nets, films, adhesive tapes, and other nonwovens for the filtration, protective solutions, release liners, and healthcare end-markets. This segment sells its products directly, as well as through sales agents and distributors. The Fiber-Based Solutions segment produces packaging and specialty paper products. This segment provides premium packaging products that are used for wine, spirits and beer labels, folding cartons, box wrap, bags, hang tags, and stored value cards servicing retail, cosmetics, spirits, and electronics end-use markets; and premium papers, which are used in commercial printing services, advertising collateral, stationery, corporate identity packages and brochures, direct mail, business cards, and other uses. It also offers branded paper-based products for the consumer channel, such as bright papers, cardstock, stationery paper, envelopes, journals, and planners. This segment distributes its products through authorized paper distributors, converters, retailers, and specialty business converters, as well as directly to end-users. The company was formerly known as Schweitzer-Mauduit International, Inc. and changed its name to Mativ Holdings, Inc. in July 2022. Mativ Holdings, Inc. was incorporated in 1995 and is headquartered in Alpharetta, Georgia.
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.
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