Analyzing AgroFresh Solutions (NASDAQ:AGFS) and Its Peers

AgroFresh Solutions (NASDAQ: AGFS) is one of 182 public companies in the “IT Services & Consulting” industry, but how does it contrast to its competitors? We will compare AgroFresh Solutions to related businesses based on the strength of its institutional ownership, dividends, valuation, earnings, profitability, analyst recommendations and risk.

Profitability

This table compares AgroFresh Solutions and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AgroFresh Solutions -42.54% 0.19% 0.07%
AgroFresh Solutions Competitors -23.39% -282.99% -4.58%

Earnings & Valuation

This table compares AgroFresh Solutions and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
AgroFresh Solutions $159.67 million -$111.56 million -5.36
AgroFresh Solutions Competitors $2.81 billion $290.97 million 281.54

AgroFresh Solutions’ competitors have higher revenue and earnings than AgroFresh Solutions. AgroFresh Solutions is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Institutional & Insider Ownership

72.6% of AgroFresh Solutions shares are held by institutional investors. Comparatively, 63.3% of shares of all “IT Services & Consulting” companies are held by institutional investors. 15.2% of AgroFresh Solutions shares are held by insiders. Comparatively, 16.6% of shares of all “IT Services & Consulting” companies are held by 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.

Analyst Recommendations

This is a summary of recent recommendations and price targets for AgroFresh Solutions and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AgroFresh Solutions 0 1 0 0 2.00
AgroFresh Solutions Competitors 771 4631 7422 171 2.54

AgroFresh Solutions presently has a consensus price target of $8.00, suggesting a potential upside of 8.11%. As a group, “IT Services & Consulting” companies have a potential downside of 12.46%. Given AgroFresh Solutions’ higher possible upside, research analysts plainly believe AgroFresh Solutions is more favorable than its competitors.

Risk and Volatility

AgroFresh Solutions has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500. Comparatively, AgroFresh Solutions’ competitors have a beta of 1.11, suggesting that their average share price is 11% more volatile than the S&P 500.

Summary

AgroFresh Solutions competitors beat AgroFresh Solutions on 9 of the 13 factors compared.

About AgroFresh Solutions

AgroFresh Solutions, Inc., formerly Boulevard Acquisition Corp., is a developer of agricultural technologies that preserve the freshness and value of fresh produce, including apples, pears, kiwifruit, avocados and bananas, as well as flowers. The Company’s principal product, The SmartFresh Quality System (SmartFresh), regulates the post-harvest ripening effects of ethylene, the naturally occurring plant hormone that triggers ripening in certain fruits and vegetables, through technology. SmartFresh is naturally biodegradable and leaves no detectable residue, which has significant consumer appeal. SmartFresh allows growers and packers to deliver just harvested freshness on a year-round basis. An integral part of the SmartFresh sales process is the AgroFresh Whole Product offering, which is a direct service model that provides customers with on-site applications of SmartFresh at their storage facilities combined with advisory services. The Company operates in approximately 40 countries.

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