American Vanguard (NYSE:AVD – Get Free Report) and Ecolab (NYSE:ECL – Get Free Report) are both materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, dividends, risk and institutional ownership.
Profitability
This table compares American Vanguard and Ecolab’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| American Vanguard | -11.99% | -16.02% | -4.76% |
| Ecolab | 11.99% | 22.57% | 8.23% |
Earnings and Valuation
This table compares American Vanguard and Ecolab”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| American Vanguard | $515.11 million | 0.05 | -$49.88 million | ($1.90) | -0.46 |
| Ecolab | $16.08 billion | 5.33 | $2.08 billion | $7.35 | 41.61 |
Ecolab has higher revenue and earnings than American Vanguard. American Vanguard is trading at a lower price-to-earnings ratio than Ecolab, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of recent ratings and target prices for American Vanguard and Ecolab, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| American Vanguard | 1 | 0 | 0 | 0 | 1.00 |
| Ecolab | 0 | 3 | 18 | 1 | 2.91 |
Ecolab has a consensus price target of $328.58, suggesting a potential upside of 7.43%. Given Ecolab’s stronger consensus rating and higher probable upside, analysts plainly believe Ecolab is more favorable than American Vanguard.
Institutional and Insider Ownership
79.0% of American Vanguard shares are owned by institutional investors. Comparatively, 74.9% of Ecolab shares are owned by institutional investors. 5.6% of American Vanguard shares are owned by insiders. Comparatively, 0.5% of Ecolab shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Risk & Volatility
American Vanguard has a beta of 1.56, indicating that its share price is 56% more volatile than the S&P 500. Comparatively, Ecolab has a beta of 0.85, indicating that its share price is 15% less volatile than the S&P 500.
Summary
Ecolab beats American Vanguard on 12 of the 15 factors compared between the two stocks.
About American Vanguard
American Vanguard Corporation, doing business primarily through its AMVAC subsidiary, develops, manufactures and markets specialty agricultural products. The company’s portfolio includes crop protection products such as insecticides, herbicides, fungicides, nematicides and soil fumigants designed to help growers manage pests, weeds and plant diseases. In addition to crop protection, American Vanguard serves the professional and consumer markets for turf and ornamental care, golf course management, pest control and public health.
About Ecolab
Ecolab Inc. provides water, hygiene, cleaning and infection-prevention products and services to businesses and institutions. Its solutions help customers manage water use, maintain sanitary environments and support operational efficiency. The company serves a range of industries, including food and beverage, foodservice, hospitality, healthcare, life sciences and manufacturing. Its offerings include cleaning and sanitizing products, water-treatment programs, pest-elimination services, and related monitoring and consulting support.
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