Analyzing Bioamber (BIOA) & AdvanSix (ASIX)

Bioamber (NYSE: BIOA) and AdvanSix (NYSE:ASIX) are both small-cap basic 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.

Valuation and Earnings

This table compares Bioamber and AdvanSix’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Bioamber $8.27 million 2.70 -$22.47 million ($0.75) -0.57
AdvanSix $1.19 billion 1.12 $34.14 million $1.58 27.73

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

Risk & Volatility

Bioamber has a beta of 2.65, indicating that its share price is 165% more volatile than the S&P 500. Comparatively, AdvanSix has a beta of 2.97, indicating that its share price is 197% more volatile than the S&P 500.

Institutional and Insider Ownership

30.0% of Bioamber shares are owned by institutional investors. Comparatively, 71.3% of AdvanSix shares are owned by institutional investors. 8.3% of Bioamber shares are owned by insiders. Comparatively, 2.7% of AdvanSix 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.

Profitability

This table compares Bioamber and AdvanSix’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Bioamber -238.43% -48.72% -22.92%
AdvanSix 3.64% 20.30% 5.64%

Analyst Ratings

This is a breakdown of recent ratings and target prices for Bioamber and AdvanSix, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Bioamber 0 1 1 0 2.50
AdvanSix 0 0 1 0 3.00

Bioamber currently has a consensus price target of $6.50, suggesting a potential upside of 1,418.69%. AdvanSix has a consensus price target of $46.00, suggesting a potential upside of 5.00%. Given Bioamber’s higher probable upside, research analysts plainly believe Bioamber is more favorable than AdvanSix.

Summary

AdvanSix beats Bioamber on 9 of the 12 factors compared between the two stocks.

Bioamber Company Profile

BioAmber Inc. (BioAmber), formerly DNP Green Technology, Inc., is an industrial biotechnology company, which produces sustainable chemicals. The Company’s technology platform combines industrial biotechnology and chemical catalysis to convert renewable feedstocks into sustainable chemicals that are replacements for petroleum-derived chemicals, which are used in a range of everyday products, including plastics, food additives and personal care products. Its geographical segments include Europe and North America. Its product pipeline includes the derivatives of bio-succinic acid, such as 1,4 Butanediol (1,4 BDO) and tetrahydrofuran (THF), and succinic acid-based polyesters, and C6 building block chemicals, such as adipic acid, caprolactam and hexamethylenediamine (HMDA). Its products are used in various applications, including polyurethanes, resins and coatings, de-icing and coolant solutions, fine chemicals, lubricants, carpets, engineering plastics and artificial leather products.

AdvanSix Company Profile

AdvanSix Inc. is an integrated manufacturer of Nylon 6. The Company also sells a variety of other products, all of which are produced as part of the Nylon 6 resin manufacturing process primarily, including caprolactam, ammonium sulfate fertilizers and other chemical intermediates. The Company operates primarily through its integrated manufacturing sites located in Frankford, Pennsylvania, Hopewell, Virginia, and Chesterfield, Virginia. The Company offers ammonium sulfate, which is used by customers as a nitrogen-based fertilizer. It produces ammonium sulfate fertilizer as part of its manufacturing process. The Company manufactures ammonium sulfate fertilizers including Sulf-N and Sulf-N 26. The Company provides AdvanSix Aegis nylon resins and Aegis barrier nylon resins. Its nylon resins are a preferred choice in food, liquid, and consumer packaging along with mono/multifilament products, carpet fibers, automotive compounding and more. It offers Capran biaxially oriented nylon films.

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