DuPont de Nemours (NYSE:DD) versus Avient (NYSE:AVNT) Critical Contrast

DuPont de Nemours (NYSE:DD) and Avient (NYSE:AVNT) are both basic materials companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, profitability, risk, institutional ownership and earnings.

Analyst Ratings

This is a summary of current recommendations and price targets for DuPont de Nemours and Avient, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DuPont de Nemours 0 12 7 0 2.37
Avient 0 2 8 0 2.80

DuPont de Nemours currently has a consensus target price of $82.71, suggesting a potential downside of 0.13%. Avient has a consensus target price of $52.33, suggesting a potential upside of 4.04%. Given Avient’s stronger consensus rating and higher probable upside, analysts plainly believe Avient is more favorable than DuPont de Nemours.

Risk and Volatility

DuPont de Nemours has a beta of 1.53, meaning that its share price is 53% more volatile than the S&P 500. Comparatively, Avient has a beta of 1.65, meaning that its share price is 65% more volatile than the S&P 500.

Insider & Institutional Ownership

70.5% of DuPont de Nemours shares are owned by institutional investors. Comparatively, 93.3% of Avient shares are owned by institutional investors. 0.2% of DuPont de Nemours shares are owned by insiders. Comparatively, 1.5% of Avient shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares DuPont de Nemours and Avient’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
DuPont de Nemours $20.40 billion 2.16 -$2.95 billion $3.36 24.65
Avient $3.24 billion 1.42 $131.60 million $1.73 29.08

Avient has lower revenue, but higher earnings than DuPont de Nemours. DuPont de Nemours 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 DuPont de Nemours and Avient’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
DuPont de Nemours 15.97% 6.76% 3.74%
Avient 4.82% 11.95% 4.19%

Dividends

DuPont de Nemours pays an annual dividend of $1.20 per share and has a dividend yield of 1.4%. Avient pays an annual dividend of $0.85 per share and has a dividend yield of 1.7%. DuPont de Nemours pays out 35.7% of its earnings in the form of a dividend. Avient pays out 49.1% 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. DuPont de Nemours has raised its dividend for 1 consecutive years and Avient has raised its dividend for 1 consecutive years.

Summary

Avient beats DuPont de Nemours on 11 of the 16 factors compared between the two stocks.

About DuPont de Nemours

DuPont de Nemours, Inc. provides technology-based materials, ingredients, and solutions in the United States, Canada, the Asia Pacific, Latin America, Europe, the Middle East, and Africa. The company's Electronics & Imaging segment supplies materials to manufacture photovoltaics and solar cells; materials and printing systems to the advanced printing industry; and materials and solutions for the fabrication of semiconductors and integrated circuits addressing front-end and back-end of the manufacturing process. This segment also provides semiconductor and advanced packaging materials; dielectric and metallization solutions for chip packaging; and silicones for light emitting diode packaging and semiconductor applications; permanent and process chemistries for the fabrication of printed circuit boards to include laminates and substrates, electroless, and electrolytic metallization solutions, as well as patterning solutions, and materials and metallization processes for metal finishing, decorative, and industrial applications. In addition, it offers various materials to manufacture rigid and flexible displays for liquid crystal displays, advanced-matrix organic light emitting diode, and quantum dot applications. The Transportation & Advanced Polymers segment provides engineering resins, adhesives, silicones, lubricants, and parts to engineers and designers in the transportation, electronics, healthcare, industrial, and consumer end-markets. Its Safety & Construction segment provides engineered products and integrated systems for worker safety, water purification and separation, aerospace, energy, medical packaging, and building materials. The company was formerly known as DowDuPont Inc. and changed its name to DuPont de Nemours, Inc. in June 2019. DuPont de Nemours, Inc. is based in Wilmington, Delaware.

About Avient

Avient Corporation provides specialized polymer materials, services, and solutions in the United States, Canada, Mexico, Europe, South America, and Asia. It operates in three segments: Color, Additives and Inks; Specialty Engineered Materials; and Distribution. The Color, Additives and Inks segment offers specialized color and additive concentrates in solid and liquid form for thermoplastics; dispersions for thermosets; and specialty inks, plastisols, and vinyl slush molding solutions. The Specialty Engineered Materials segment provides specialty polymer formulations, services, and solutions for designers, assemblers, and processors of thermoplastic materials; and long glass and carbon fiber technology, and thermoset and thermoplastic composites. The Distribution segment distributes approximately 4,000 grades of engineering and commodity grade resins to custom injection molders and extruders. The company 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.

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