Hexcel (NYSE: HXL) and AdvanSix (NYSE:ASIX) are both aerospace companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, earnings, dividends, risk, valuation and profitability.

Profitability

This table compares Hexcel and AdvanSix’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Hexcel 13.81% 17.36% 9.15%
AdvanSix 8.99% 24.00% 8.19%

Valuation & Earnings

This table compares Hexcel and AdvanSix’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Hexcel $1.97 billion 3.16 $284.00 million $2.68 26.03
AdvanSix $1.48 billion 0.83 $146.69 million $3.00 13.43

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

Volatility and Risk

Hexcel has a beta of 1.14, meaning that its share price is 14% more volatile than the S&P 500. Comparatively, AdvanSix has a beta of 1.38, meaning that its share price is 38% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations and price targets for Hexcel and AdvanSix, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Hexcel 0 6 5 0 2.45
AdvanSix 0 0 1 0 3.00

Hexcel currently has a consensus price target of $71.27, suggesting a potential upside of 2.15%. AdvanSix has a consensus price target of $41.00, suggesting a potential upside of 1.74%. Given Hexcel’s higher probable upside, equities research analysts plainly believe Hexcel is more favorable than AdvanSix.

Institutional and Insider Ownership

94.4% of Hexcel shares are held by institutional investors. Comparatively, 76.5% of AdvanSix shares are held by institutional investors. 1.3% of Hexcel shares are held by company insiders. Comparatively, 0.2% of AdvanSix 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.

Dividends

Hexcel pays an annual dividend of $0.50 per share and has a dividend yield of 0.7%. AdvanSix does not pay a dividend. Hexcel pays out 18.7% of its earnings in the form of a dividend. Hexcel has raised its dividend for 2 consecutive years.

Summary

Hexcel beats AdvanSix on 12 of the 17 factors compared between the two stocks.

Hexcel Company Profile

Hexcel Corporation, together with its subsidiaries, develops, manufactures, and markets structural materials for use in commercial aerospace, space and defense, and industrial markets. The company operates in two segments, Composite Materials and Engineered Products. The Composite Materials segment manufactures and markets carbon fibers, fabrics and specialty reinforcements, prepregs and other fiber-reinforced matrix materials, structural adhesives, honeycombs, molding compounds, tooling materials, polyurethane systems, and laminates that are used in military and commercial aircraft, wind turbine blade, recreational product, and other industrial applications, as well as in cars, boats, and trains. The Engineered Products segment manufactures and markets aircraft structures and finished aircraft components, including wing to body fairings, wing panels, flight deck panels, door liners, helicopter blades, spars, and tip caps; and aircraft structural sub-components and semi-finished components for use in helicopter blades, engine nacelles, and aircraft surfaces, such as flaps, wings, elevators, and fairings. The company sells products directly through its sales personnel, as well as through independent distributors and manufacturer representatives in the Americas, Europe, the Asia Pacific, Russia, and Africa. Hexcel Corporation has a strategic alliance with Arkema to develop thermoplastic composite solutions. The company was founded in 1946 and is headquartered in Stamford, Connecticut.

AdvanSix Company Profile

AdvanSix Inc. manufactures and sells polymer resins in the United States. It offers Nylon 6, a polymer resin, which is a synthetic material used to produce engineered plastics, fibers, filaments, and films. The company also provides caprolactam, ammonium sulfate fertilizers, and acetone, as well as other intermediate chemicals, including phenol, alpha-methylstyrene, cyclohexanone, methyl ethyl ketoxime, cyclohexanol, acetaldehyde oxime, 2-pentanone oxime, sulfuric acid, ammonia, and carbon dioxide. It offers its products under the Aegis, Capran, Sulf-N, Nadone, Naxol, and EZ-Blox brands. AdvanSix Inc. was incorporated in 2016 and is headquartered in Parsippany, New Jersey.

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