Rayonier Advanced Materials (NYSE:RYAM) & CVR Partners (NYSE:UAN) Critical Survey

CVR Partners (NYSE:UAN – Get Free Report) and Rayonier Advanced Materials (NYSE:RYAM – Get Free Report) are both small-cap materials companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, risk, institutional ownership, analyst recommendations, earnings, profitability and dividends.

Risk & Volatility

CVR Partners has a beta of 0.16, meaning that its share price is 84% less volatile than the S&P 500. Comparatively, Rayonier Advanced Materials has a beta of 1.76, meaning that its share price is 76% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for CVR Partners and Rayonier Advanced Materials, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CVR Partners 0 0 1 0 3.00
Rayonier Advanced Materials 1 1 1 0 2.00

Rayonier Advanced Materials has a consensus price target of $13.00, suggesting a potential upside of 50.90%. Given Rayonier Advanced Materials’ higher probable upside, analysts plainly believe Rayonier Advanced Materials is more favorable than CVR Partners.

Insider & Institutional Ownership

43.8% of CVR Partners shares are held by institutional investors. Comparatively, 68.6% of Rayonier Advanced Materials shares are held by institutional investors. 0.4% of CVR Partners shares are held by company insiders. Comparatively, 3.2% of Rayonier Advanced Materials shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Profitability

This table compares CVR Partners and Rayonier Advanced Materials’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CVR Partners 23.67% 51.56% 15.70%
Rayonier Advanced Materials -9.53% -46.19% -7.28%

Valuation and Earnings

This table compares CVR Partners and Rayonier Advanced Materials”s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
CVR Partners $676.86 million 1.92 $98.66 million $15.16 8.13
Rayonier Advanced Materials $1.47 billion 0.40 -$420.67 million ($2.10) -4.10

CVR Partners has higher earnings, but lower revenue than Rayonier Advanced Materials. Rayonier Advanced Materials is trading at a lower price-to-earnings ratio than CVR Partners, indicating that it is currently the more affordable of the two stocks.

Summary

CVR Partners beats Rayonier Advanced Materials on 8 of the 13 factors compared between the two stocks.

About CVR Partners

(Get Free Report)

CVR Partners, LP, together with its subsidiaries, engages in the production and sale of nitrogen fertilizer products in the United States. The company offers ammonia products for agricultural and industrial customers; and urea ammonium nitrate products to agricultural customers, as well as retailers and distributors. CVR GP, LLC serves as the general partner of the company. CVR Partners, LP was incorporated in 2007 and is based in Sugar Land, Texas. CVR Partners, LP is a subsidiary of CVR Energy, Inc.

About Rayonier Advanced Materials

(Get Free Report)

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.

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