Rayonier Advanced Materials (NYSE:RYAM – Get Free Report) and Aduro Clean Technologies (NASDAQ:ADUR – Get Free Report) are both small-cap materials companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, earnings, analyst recommendations, risk, profitability, valuation and institutional ownership.
Institutional & Insider Ownership
68.6% of Rayonier Advanced Materials shares are owned by institutional investors. 3.2% of Rayonier Advanced Materials shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Profitability
This table compares Rayonier Advanced Materials and Aduro Clean Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Rayonier Advanced Materials | -9.53% | -46.19% | -7.28% |
| Aduro Clean Technologies | N/A | -104.06% | -77.60% |
Earnings and Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Rayonier Advanced Materials | $1.47 billion | 0.42 | -$420.67 million | ($2.10) | -4.35 |
| Aduro Clean Technologies | $120,000.00 | 3,731.09 | -$19.47 million | ($0.62) | -20.45 |
Aduro Clean Technologies has lower revenue, but higher earnings than Rayonier Advanced Materials. Aduro Clean Technologies is trading at a lower price-to-earnings ratio than Rayonier Advanced Materials, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent recommendations and price targets for Rayonier Advanced Materials and Aduro Clean Technologies, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Rayonier Advanced Materials | 1 | 1 | 1 | 0 | 2.00 |
| Aduro Clean Technologies | 1 | 1 | 3 | 1 | 2.67 |
Rayonier Advanced Materials presently has a consensus target price of $13.00, suggesting a potential upside of 42.15%. Aduro Clean Technologies has a consensus target price of $29.25, suggesting a potential upside of 130.68%. Given Aduro Clean Technologies’ stronger consensus rating and higher possible upside, analysts clearly believe Aduro Clean Technologies is more favorable than Rayonier Advanced Materials.
Risk and Volatility
Rayonier Advanced Materials has a beta of 1.76, suggesting that its stock price is 76% more volatile than the S&P 500. Comparatively, Aduro Clean Technologies has a beta of 3.22, suggesting that its stock price is 222% more volatile than the S&P 500.
Summary
Aduro Clean Technologies beats Rayonier Advanced Materials on 9 of the 15 factors compared between the two stocks.
About Rayonier Advanced Materials
Rayonier Advanced Materials Inc. manufactures and sells cellulose specialty products in the United States, China, Latin America, Canada, Japan, Europe, Latin America, other Asian countries, and internationally. It operates through High Purity Cellulose, Paperboard, and High-Yield Pulp segments. The company’s products include cellulose specialties, which are natural polymers that are used as raw materials to manufacture a range of consumer-oriented products, such as liquid crystal displays, impact-resistant plastics, thickeners for food products, pharmaceuticals, cosmetics, cigarette filters, high-tenacity rayon yarn for tires and industrial hoses, food casings, paints, and lacquers. It also offers commodity products, such as commodity viscose pulp used in woven applications, including rayon textiles for clothing and other fabrics, as well as in non-woven applications comprising baby wipes, cosmetic and personal wipes, industrial wipes, and mattress ticking; and absorbent materials consisting of fluff fibers that are used as an absorbent medium in disposable baby diapers, feminine hygiene products, incontinence pads, convalescent bed pads, industrial towels and wipes, and non-woven fabrics. In addition, the company provides paperboards for packaging, printing documents, brochures, promotional materials, paperback books and catalog covers, file folders, tags, and lottery tickets; and high-yield pulps to produces hardwood aspen, maple, and birch species for paperboard, packaging, printing and writing papers, and various other paper products. The company was founded in 1926 and is headquartered in Jacksonville, Florida.
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.
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