Head to Head Analysis: American Vanguard Corporation (AVD) & Israel Chemicals Shs (ICL)

Israel Chemicals Shs (NYSE: ICL) and American Vanguard Corporation (NYSE:AVD) are both basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, profitability, risk, institutional ownership and analyst recommendations.

Risk & Volatility

Israel Chemicals Shs has a beta of 1.05, suggesting that its share price is 5% more volatile than the S&P 500. Comparatively, American Vanguard Corporation has a beta of 1.3, suggesting that its share price is 30% more volatile than the S&P 500.

Institutional and Insider Ownership

6.1% of Israel Chemicals Shs shares are owned by institutional investors. Comparatively, 76.3% of American Vanguard Corporation shares are owned by institutional investors. 4.7% of American Vanguard Corporation shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Israel Chemicals Shs and American Vanguard Corporation’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Israel Chemicals Shs $5.36 billion 0.97 -$122.00 million ($0.10) -40.60
American Vanguard Corporation $312.11 million 1.79 $12.78 million $0.53 35.38

American Vanguard Corporation has higher revenue, but lower earnings than Israel Chemicals Shs. Israel Chemicals Shs is trading at a lower price-to-earnings ratio than American Vanguard Corporation, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and price targets for Israel Chemicals Shs and American Vanguard Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Israel Chemicals Shs 0 2 0 0 2.00
American Vanguard Corporation 0 1 1 1 3.00

Israel Chemicals Shs presently has a consensus target price of $4.88, indicating a potential upside of 20.07%. American Vanguard Corporation has a consensus target price of $25.50, indicating a potential upside of 36.00%. Given American Vanguard Corporation’s stronger consensus rating and higher probable upside, analysts clearly believe American Vanguard Corporation is more favorable than Israel Chemicals Shs.

Profitability

This table compares Israel Chemicals Shs and American Vanguard Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Israel Chemicals Shs 4.47% 13.20% 4.16%
American Vanguard Corporation 4.83% 5.44% 3.60%

Dividends

Israel Chemicals Shs pays an annual dividend of $0.12 per share and has a dividend yield of 3.0%. American Vanguard Corporation pays an annual dividend of $0.06 per share and has a dividend yield of 0.3%. Israel Chemicals Shs pays out -120.0% of its earnings in the form of a dividend. American Vanguard Corporation pays out 11.3% 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. Israel Chemicals Shs is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

American Vanguard Corporation beats Israel Chemicals Shs on 12 of the 17 factors compared between the two stocks.

Israel Chemicals Shs Company Profile

Israel Chemicals Ltd. operates as a specialty minerals company worldwide. The company operates through two segments, Essential Minerals and Specialty Solutions. The company extracts potash from the Dead Sea; mines and produces potash and salt from subterranean mines in Spain and the United Kingdom, as well as uses part of the potash to produce compound fertilizers; mines and processes phosphate rock in open mines; and produces sulfuric acid, agricultural phosphoric acid, phosphate fertilizers, compound fertilizers, liquid fertilizers, and soluble fertilizers. It also manufactures compound fertilizers in the Netherlands, Germany, and Belgium; liquid fertilizers and soluble fertilizers in Spain; slow release and controlled release fertilizers in the Netherlands and the United States; and phosphate-based food additives for livestock in Turkey and Israel. In addition, the company produces bromine out of a solution that is created as a by-product of the potash production process in Sodom, as well as bromine-based products; chlorine-based products in Israel and the United States; and flame retardants and phosphorus based products, as well as extracts salt, magnesia, and chlorine from Dead Sea brine. Further, it purchases clean phosphoric acid and manufactures thermal phosphoric acids, which are used to manufacture downstream products and phosphate salts that are used as a raw material for manufacturing, food additives, hygiene products and flame retardants, and fire extinguishment products. It also manufactures phosphorous derivatives based on phosphorous; specialty products based on aluminum acids; and other raw materials. The company sells its products through marketing companies, agents, and distributors. Israel Chemicals Ltd. was founded in 1968 and is headquartered in Tel Aviv, Israel.

American Vanguard Corporation Company Profile

American Vanguard Corporation operates as a holding company. The Company conducts its business through its subsidiaries, AMVAC Chemical Corporation (AMVAC), GemChem, Inc. (GemChem), 2110 Davie Corporation (DAVIE), Quimica Amvac de Mexico S.A. de C.V. (AMVAC M), AMVAC Mexico Sociedad de Responsabilidad Limitada (AMVAC M Srl), AMVAC de Costa Rica Sociedad de Responsabilidad Limitada (AMVAC CR Srl), AMVAC Switzerland GmbH (AMVAC S), AMVAC do Brasil Representacoes Ltda (AMVAC B), AMVAC C.V. (AMVAC CV), AMVAC Netherlands BV (AMVAC BV), Envance Technologies, LLC (Envance), AMVAC Singapore Pte, Ltd (AMVAC Sgpr) and Huifeng AMVAC Innovation Co. Limited (Hong Kong JV). AMVAC is a specialty chemical manufacturer that develops and markets products for agricultural, commercial and consumer uses. It manufactures and formulates chemicals, such as insecticides, fungicides, herbicides, molluscicides and soil fumigants for crops, turf and ornamental plants, and human and animal health protection.

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