Head to Head Comparison: American Vanguard (NYSE:AVD) versus Israel Chemicals Shs (ICL)

American Vanguard (NYSE: AVD) and Israel Chemicals Shs (NYSE:ICL) are both basic materials companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, risk, institutional ownership, dividends, profitability, earnings and valuation.

Volatility and Risk

American Vanguard has a beta of 1.23, meaning that its stock price is 23% more volatile than the S&P 500. Comparatively, Israel Chemicals Shs has a beta of 1.04, meaning that its stock price is 4% more volatile than the S&P 500.

Valuation & Earnings

This table compares American Vanguard and Israel Chemicals Shs’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
American Vanguard $312.11 million 1.85 $12.78 million $0.54 35.93
Israel Chemicals Shs $5.36 billion 0.98 -$122.00 million ($0.10) -41.10

American Vanguard has higher earnings, but lower revenue than Israel Chemicals Shs. Israel Chemicals Shs is trading at a lower price-to-earnings ratio than American Vanguard, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares American Vanguard and Israel Chemicals Shs’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
American Vanguard 4.83% 5.44% 3.60%
Israel Chemicals Shs 4.47% 13.20% 4.16%

Analyst Ratings

This is a summary of recent ratings and target prices for American Vanguard and Israel Chemicals Shs, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Vanguard 0 1 1 1 3.00
Israel Chemicals Shs 0 2 0 0 2.00

American Vanguard presently has a consensus price target of $25.50, indicating a potential upside of 31.44%. Israel Chemicals Shs has a consensus price target of $4.88, indicating a potential upside of 18.61%. Given American Vanguard’s stronger consensus rating and higher probable upside, equities analysts clearly believe American Vanguard is more favorable than Israel Chemicals Shs.

Dividends

American Vanguard pays an annual dividend of $0.06 per share and has a dividend yield of 0.3%. Israel Chemicals Shs pays an annual dividend of $0.10 per share and has a dividend yield of 2.4%. American Vanguard pays out 11.1% of its earnings in the form of a dividend. Israel Chemicals Shs pays out -100.0% 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. Israel Chemicals Shs is clearly the better dividend stock, given its higher yield and lower payout ratio.

Institutional and Insider Ownership

76.5% of American Vanguard shares are owned by institutional investors. Comparatively, 6.4% of Israel Chemicals Shs shares are owned by institutional investors. 4.7% of American Vanguard shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

American Vanguard beats Israel Chemicals Shs on 12 of the 17 factors compared between the two stocks.

American Vanguard Company Profile

American Vanguard Corporation operates as a holding company. The Company conducts its business through its subsidiaries, AMVAC Chemical Corporation (AMVAC), GemChem, Inc. (GemChem), 2110 Davie Corporation (DAVIE), Quimica Amvac de Mexico S.A. de C.V. (AMVAC M), AMVAC Mexico Sociedad de Responsabilidad Limitada (AMVAC M Srl), AMVAC de Costa Rica Sociedad de Responsabilidad Limitada (AMVAC CR Srl), AMVAC Switzerland GmbH (AMVAC S), AMVAC do Brasil Representacoes Ltda (AMVAC B), AMVAC C.V. (AMVAC CV), AMVAC Netherlands BV (AMVAC BV), Envance Technologies, LLC (Envance), AMVAC Singapore Pte, Ltd (AMVAC Sgpr) and Huifeng AMVAC Innovation Co. Limited (Hong Kong JV). AMVAC is a specialty chemical manufacturer that develops and markets products for agricultural, commercial and consumer uses. It manufactures and formulates chemicals, such as insecticides, fungicides, herbicides, molluscicides and soil fumigants for crops, turf and ornamental plants, and human and animal health protection.

Israel Chemicals Shs Company Profile

Israel Chemicals Ltd. operates as a specialty minerals company worldwide. The company operates through two segments, Essential Minerals and Specialty Solutions. The company extracts potash from the Dead Sea; mines and produces potash and salt from subterranean mines in Spain and the United Kingdom, as well as uses part of the potash to produce compound fertilizers; mines and processes phosphate rock in open mines; and produces sulfuric acid, agricultural phosphoric acid, phosphate fertilizers, compound fertilizers, liquid fertilizers, and soluble fertilizers. It also manufactures compound fertilizers in the Netherlands, Germany, and Belgium; liquid fertilizers and soluble fertilizers in Spain; slow release and controlled release fertilizers in the Netherlands and the United States; and phosphate-based food additives for livestock in Turkey and Israel. In addition, the company produces bromine out of a solution that is created as a by-product of the potash production process in Sodom, as well as bromine-based products; chlorine-based products in Israel and the United States; and flame retardants and phosphorus based products, as well as extracts salt, magnesia, and chlorine from Dead Sea brine. Further, it purchases clean phosphoric acid and manufactures thermal phosphoric acids, which are used to manufacture downstream products and phosphate salts that are used as a raw material for manufacturing, food additives, hygiene products and flame retardants, and fire extinguishment products. It also manufactures phosphorous derivatives based on phosphorous; specialty products based on aluminum acids; and other raw materials. The company sells its products through marketing companies, agents, and distributors. Israel Chemicals Ltd. was founded in 1968 and is headquartered in Tel Aviv, Israel.

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