Basf (OTCMKTS:BASFY) vs. Avient (NYSE:AVNT) Financial Survey

Basf (OTCMKTS:BASFY) and Avient (NYSE:AVNT) are both materials companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, dividends, valuation, institutional ownership, profitability and analyst recommendations.

Analyst Ratings

This is a summary of current ratings and target prices for Basf and Avient, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Basf	2	4	3	1	2.30
Avient	0	4	3	0	2.43

Avient has a consensus price target of $48.75, suggesting a potential upside of 9.16%. Given Avient’s stronger consensus rating and higher probable upside, analysts plainly believe Avient is more favorable than Basf.

Insider and Institutional Ownership

0.0% of Basf shares are held by institutional investors. Comparatively, 95.5% of Avient shares are held by institutional investors. 0.9% of Avient shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Dividends

Basf pays an annual dividend of $0.47 per share and has a dividend yield of 3.1%. Avient pays an annual dividend of $1.10 per share and has a dividend yield of 2.5%. Basf pays out 24.4% of its earnings in the form of a dividend. Avient pays out 56.4% 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. Avient has raised its dividend for 1 consecutive years. Basf is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility and Risk

Basf has a beta of 0.8, meaning that its stock price is 20% less volatile than the S&P 500. Comparatively, Avient has a beta of 1.23, meaning that its stock price is 23% more volatile than the S&P 500.

Profitability

This table compares Basf and Avient’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Basf	9.11%	6.92%	3.07%
Avient	5.27%	12.17%	4.95%

Valuation and Earnings

This table compares Basf and Avient”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Basf	$67.48 billion	0.79	$1.83 billion	$1.93	7.76
Avient	$3.26 billion	1.26	$81.90 million	$1.95	22.90

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

Summary

Avient beats Basf on 11 of the 17 factors compared between the two stocks.

About Basf

BASF SE is a German chemical company that develops, produces and sells chemicals and related products for businesses across a wide range of industries. Its portfolio includes chemicals and materials, industrial solutions, surface technologies, products for nutrition and personal care, and agricultural solutions such as crop protection products and seeds. Founded in 1865, BASF is headquartered in Ludwigshafen, Germany, and serves customers around the world. Its products are used in areas including manufacturing, transportation, construction, agriculture and consumer goods.

About Avient

Avient Corporation is a global provider of specialty polymer materials, services and solutions. Its offerings include colorants, additives, specialty engineered compounds and other materials designed to enhance the performance, appearance or processing of plastics and other polymers. The company serves customers across industries such as packaging, healthcare, transportation, consumer products and construction. Avient’s products include color and additive concentrates, specialty thermoplastic compounds, and high-performance materials, including advanced fibers and composites.