Financial Review: Aduro Clean Technologies (NASDAQ:ADUR) versus Balchem (NASDAQ:BCPC)

Aduro Clean Technologies (NASDAQ:ADUR) and Balchem (NASDAQ:BCPC) are both manufacturing companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.

Institutional & Insider Ownership

87.9% of Balchem shares are owned by institutional investors. 1.4% of Balchem shares are owned by company 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 Aduro Clean Technologies and Balchem’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Aduro Clean Technologies	N/A	N/A	N/A
Balchem	13.47%	11.37%	8.11%

Analyst Ratings

This is a summary of current ratings and target prices for Aduro Clean Technologies and Balchem, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aduro Clean Technologies	0	0	1	0	3.00
Balchem	0	1	1	0	2.50

Aduro Clean Technologies currently has a consensus target price of $50.00, suggesting a potential upside of 730.56%. Balchem has a consensus target price of $180.00, suggesting a potential upside of 7.71%. Given Aduro Clean Technologies’ stronger consensus rating and higher probable upside, analysts clearly believe Aduro Clean Technologies is more favorable than Balchem.

Valuation & Earnings

This table compares Aduro Clean Technologies and Balchem”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aduro Clean Technologies	$258,792.00	661.52	N/A	N/A	N/A
Balchem	$964.54 million	5.65	$128.48 million	$4.17	40.07

Balchem has higher revenue and earnings than Aduro Clean Technologies.

Summary

Balchem beats Aduro Clean Technologies on 6 of the 9 factors compared between the two stocks.

About Aduro Clean Technologies

Aduro Clean Technologies is a developer of patented water-based technologies to chemically recycle waste plastics; convert heavy crude and bitumen into lighter, more valuable oil and transform renewable oils into higher-value fuels or renewable chemicals. Aduro Clean Technologies is based in LONDON, Ontario.

About Balchem

Balchem Corporation develops, manufactures, and markets specialty performance ingredients and products for the nutritional, food, pharmaceutical, animal health, medical device sterilization, plant nutrition, and industrial markets worldwide. It operates through three segments: Human Nutrition and Health, Animal Nutrition and Health, and Specialty Products. The Human Nutrition & Health segment supplies ingredients in the food and beverage industry. Its products include spray dried and emulsified powders, extrusion and agglomeration, blended lipid systems, liquid flavor delivery systems, juice and dairy bases, chocolate systems, and cereal systems, as well as ice cream bases and variegates. This segment also offers specialty vitamin K2; microencapsulation solutions for various applications; and human grade choline nutrients and mineral amino acid chelated products for nutrition and health applications. The Animal Nutrition & Health segment provides microencapsulated products to enhance health and milk production, and delivering nutrient supplements in ruminant animals; chelation technology, which offers enhanced nutrient absorption for various species of production and companion animals; methylsulfonylmethane; and choline chloride, a nutrient for monogastric animal health. The Specialty Products segment distributes ethylene oxide and ammonia primarily for use in the health care industry; and single use canisters for sterilizing re-usable devices. This segment also markets and sells propylene oxide, a fumigant to aid in the control of insects and microbiological spoilage, as well as to reduce bacterial and mold contamination in shell and processed nut meats, processed spices, cacao beans, cocoa powder, raisins, figs, and prunes; and chelated minerals for high value crops. It sells its products through sales force, independent distributors, and sales agents. The company was incorporated in 1967 and is headquartered in Montvale, New Jersey.