Critical Survey: RPM International (NYSE:RPM) vs. Avient (NYSE:AVNT)

Avient (NYSE:AVNT) and RPM International (NYSE:RPM) are both materials companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, earnings, risk, profitability, institutional ownership, dividends and valuation.

Insider and Institutional Ownership

95.5% of Avient shares are held by institutional investors. Comparatively, 80.9% of RPM International shares are held by institutional investors. 0.9% of Avient shares are held by insiders. Comparatively, 1.5% of RPM International 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.

Volatility and Risk

Avient has a beta of 1.29, indicating that its stock price is 29% more volatile than the S&P 500. Comparatively, RPM International has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500.

Dividends

Avient pays an annual dividend of $1.10 per share and has a dividend yield of 2.7%. RPM International pays an annual dividend of $2.16 per share and has a dividend yield of 2.2%. Avient pays out 59.5% of its earnings in the form of a dividend. RPM International pays out 41.9% 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 and RPM International has raised its dividend for 51 consecutive years.

Analyst Ratings

This is a summary of current recommendations and price targets for Avient and RPM International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Avient	0	3	3	0	2.50
RPM International	0	3	11	0	2.79

Avient currently has a consensus target price of $46.71, indicating a potential upside of 15.40%. RPM International has a consensus target price of $125.75, indicating a potential upside of 27.77%. Given RPM International’s stronger consensus rating and higher possible upside, analysts plainly believe RPM International is more favorable than Avient.

Earnings and Valuation

This table compares Avient and RPM International”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Avient	$3.33 billion	1.11	$81.90 million	$1.85	21.88
RPM International	$7.86 billion	1.60	$661.39 million	$5.16	19.07

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Avient	5.10%	11.64%	4.67%
RPM International	8.41%	22.45%	8.86%

Summary

RPM International beats Avient on 13 of the 17 factors compared between the two stocks.

About Avient

Avient Corporation operates as a formulator of material solutions in the United States, Canada, Mexico, Europe, South America, and Asia. It operates in two segments, Color, Additives and Inks; and Specialty Engineered Materials. The Color, Additives and Inks segment offers custom color and additive concentrates in solid and liquid form for thermoplastics, dispersions for thermosets, and specialty inks; custom-formulated liquid system, such as polyester, vinyl, natural rubber and latex, polyurethane, and silicone; and proprietary inks. Its products are used in medical and pharmaceutical devices, food packaging, personal care and cosmetics, transportation, building products, wire and cable, recreational and athletic apparel, construction and filtration, outdoor furniture, healthcare, textiles and appliances, and industrial markets. The Specialty Engineered Materials segment provides specialty polymer formulations, services, and solutions for designers, assemblers, and processors of thermoplastic materials. It sells its products through direct sales personnel, distributors, and commissioned sales agents. The company was formerly known as PolyOne Corporation and changed its name to Avient Corporation in June 2020. Avient Corporation was founded in 1885 and is headquartered in Avon Lake, Ohio.

About RPM International

RPM International Inc. manufactures and sells specialty chemicals for the industrial, specialty, and consumer markets worldwide. It offers waterproofing, coating, and traditional roofing systems; sealants, air barriers, tapes, and foams; residential home weatherization systems; roofing and building maintenance services; sealing and bonding, subfloor preparation, flooring, and glazing solutions; resin flooring systems, polyurethane, MMA waterproof, epoxy floor paint and coatings, concrete repair, and protection products; fire stopping and intumescent steel coating, and manufacturing industry solutions; rolled asphalt roofing materials and chemical admixtures; concrete and masonry admixtures, concrete fibers, curing and sealing compounds, structural grouts and mortars, epoxy adhesives, injection resins, polyurethane foams, floor hardeners and toppings, joint fillers, industrial and architectural coatings, decorative color/stains/stamps, and restoration materials; insulated building cladding materials; and concrete form wall systems. It also provides polymer flooring systems; fiberglass reinforced plastic gratings and shapes; corrosion-control coating, containment and railcar lining, fire and sound proofing, and heat and cryogenic insulation products; specialty construction products; amine curing agents, reactive diluents, and epoxy resins; fluorescent colorants and pigments; shellac-based-specialty and marine coatings; fire and water damage restoration, carpet cleaning, and disinfecting products; fuel additives; wood treatments, coatings, and touch-up products; and nail enamels, polishes, and coating components. In addition, it offers solutions for the paint contractors and DIYers, concrete restoration and flooring, metallic and faux finish coatings, cleaners, and hobby paints and cements; and caulks, adhesives, insulating foams, and patches, as well as spackling, glazing, and repair products. The company was incorporated in 1947 and is headquartered in Medina, Ohio.