Reviewing Nutrien (NYSE:NTR) & Orbia Advance (OTCMKTS:MXCHF)

Orbia Advance (OTCMKTS:MXCHF) and Nutrien (NYSE:NTR) are both materials companies, but which is the better stock? We will contrast the two companies based on the strength of their profitability, valuation, risk, analyst recommendations, institutional ownership, earnings and dividends.

Dividends

Orbia Advance pays an annual dividend of $0.05 per share and has a dividend yield of 3.4%. Nutrien pays an annual dividend of $2.20 per share and has a dividend yield of 3.2%. Orbia Advance pays out 59.4% of its earnings in the form of a dividend. Nutrien pays out 44.5% 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. Nutrien has increased its dividend for 7 consecutive years.

Insider & Institutional Ownership

14.5% of Orbia Advance shares are owned by institutional investors. Comparatively, 63.1% of Nutrien shares are owned by institutional investors. 3.1% of Nutrien shares are owned 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 Orbia Advance and Nutrien’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Orbia Advance	N/A	N/A	N/A
Nutrien	8.44%	8.88%	4.27%

Analyst Recommendations

This is a summary of current ratings and target prices for Orbia Advance and Nutrien, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Orbia Advance	0	0	0	0	0.00
Nutrien	1	3	17	0	2.76

Nutrien has a consensus price target of $81.58, suggesting a potential upside of 19.81%. Given Nutrien’s stronger consensus rating and higher probable upside, analysts plainly believe Nutrien is more favorable than Orbia Advance.

Earnings and Valuation

This table compares Orbia Advance and Nutrien”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Orbia Advance	N/A	N/A	N/A	$0.08	17.52
Nutrien	$26.89 billion	1.21	$2.27 billion	$4.94	13.78

Nutrien has higher revenue and earnings than Orbia Advance. Nutrien is trading at a lower price-to-earnings ratio than Orbia Advance, indicating that it is currently the more affordable of the two stocks.

Summary

Nutrien beats Orbia Advance on 12 of the 14 factors compared between the two stocks.

About Orbia Advance

Orbia Advance Corporation, S.A.B. de C.V. provides products and solutions for precision agriculture, building and infrastructure, fluorinated, polymer, and connectivity sectors worldwide. The company offers irrigation systems, agricultural and greenhouse projects, digital farming technologies, and related services; and connectivity solutions, including conduits, cable-in conduit, and other HDPE products and solutions. It also provides water delivering solutions for drinking water supply, sanitation, and urban water resilience; fluorine and downstream products, comprising fluorspar mine and produces intermediates, refrigerants, and propellants for used in automotive, infrastructure, semiconductor, health, medicine, climate control, food cold chain, energy storage, computing, and telecommunications applications; and general and specialty resins, PVC, and compounds and additives for stabilizers and plasticizers, as well as compounds formulated from polyolefin, thermoplastic polyurethane, and thermoplastic elastomer polymers for various applications. The company was formerly known as Mexichem, S.A.B. de C.V. and changed its name to Orbia Advance Corporation, S.A.B. de C.V. in August 2019. Orbia Advance Corporation, S.A.B. de C.V. was founded in 1953 and is headquartered in Mexico City, Mexico.

About Nutrien

Nutrien Ltd. provides crop inputs and services. The company operates through four segments: Retail, Potash, Nitrogen, and Phosphate. The Retail segment distributes crop nutrients, crop protection products, seeds, and merchandise products. The Potash segment provides granular and standard potash products. The Nitrogen segment offers ammonia, urea, environmentally smart nitrogen, nitrogen solutions, nitrates, and sulfates. The Phosphate segment provides solid fertilizer, liquid fertilizer, and industrial and feed products. In addition, it provides services directly to growers through a network of farm centers in North America, South America, and Australia. The company is headquartered in Saskatoon, Canada.