Critical Comparison: AgroFresh Solutions (AGFS) vs. Universal Business Payment Solutions Acquisition (JTPY)

AgroFresh Solutions (NASDAQ: AGFS) and Universal Business Payment Solutions Acquisition (NASDAQ:JTPY) are both small-cap basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, analyst recommendations, earnings and valuation.

Valuation and Earnings

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This table compares AgroFresh Solutions and Universal Business Payment Solutions Acquisition’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AgroFresh Solutions $164.03 million 2.28 $23.47 million N/A N/A
Universal Business Payment Solutions Acquisition $76.04 million 0.46 -$3.10 million ($0.75) -3.01

AgroFresh Solutions has higher revenue and earnings than Universal Business Payment Solutions Acquisition.

Institutional and Insider Ownership

35.8% of AgroFresh Solutions shares are held by institutional investors. Comparatively, 12.7% of Universal Business Payment Solutions Acquisition shares are held by institutional investors. 15.2% of AgroFresh Solutions shares are held by insiders. Comparatively, 62.9% of Universal Business Payment Solutions Acquisition shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

AgroFresh Solutions has a beta of 0.81, suggesting that its share price is 19% less volatile than the S&P 500. Comparatively, Universal Business Payment Solutions Acquisition has a beta of 0.18, suggesting that its share price is 82% less volatile than the S&P 500.

Profitability

This table compares AgroFresh Solutions and Universal Business Payment Solutions Acquisition’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AgroFresh Solutions 14.31% -0.14% -0.06%
Universal Business Payment Solutions Acquisition -4.08% -40.74% -0.77%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for AgroFresh Solutions and Universal Business Payment Solutions Acquisition, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AgroFresh Solutions 0 1 0 0 2.00
Universal Business Payment Solutions Acquisition 0 0 0 0 N/A

AgroFresh Solutions presently has a consensus price target of $8.00, suggesting a potential upside of 8.70%. Given AgroFresh Solutions’ higher probable upside, equities analysts clearly believe AgroFresh Solutions is more favorable than Universal Business Payment Solutions Acquisition.

Summary

AgroFresh Solutions beats Universal Business Payment Solutions Acquisition on 9 of the 10 factors compared between the two stocks.

AgroFresh Solutions Company Profile

AgroFresh Solutions, Inc. provides data-driven specialty solutions worldwide. The company uses 1-Methylcyclopropene technology, an ethylene action inhibitor to maintain freshness and extend the shelf life of various fresh produce. Its solutions enable growers and packers of fresh produce to preserve and enhance the freshness, quality, and value of fresh produce, including apples, pears, kiwifruit, avocados, and bananas, as well as flowers. The company's flagship product is the SmartFresh Quality System that regulates the post-harvest ripening effects of ethylene to preserve the texture, firmness, taste, and appearance of produce during storage, transportation, and retail display. It also provides Harvista technology for use in pre-harvest management of pome fruit, such as apples and pears. In addition, the company is developing AdvanStore technology for monitoring fresh fruits while in storage; RipeLock Quality System, a proprietary technology that extends the shelf life of bananas; and LandSpring, a proprietary technology that minimizes stress induced ethylene effects in vegetable seedling transplants allowing for post-transplant vigor. The company was formerly known as Boulevard Acquisition Corp. and changed its name to AgroFresh Solutions, Inc. in July 2015. AgroFresh Solutions, Inc. is headquartered in Philadelphia, Pennsylvania.

Universal Business Payment Solutions Acquisition Company Profile

JetPay Corporation provides debit and credit card processing, payroll, human capital management (HCM) and card services to businesses and their employees in the United States. The company operates through two segments, JetPay Payment Processing and JetPay HR and Payroll. It offers debit and credit processing and automated clearing house payment services to small and medium-sized businesses, as well as to large entities, which processes Internet transactions and recurring billings; and HCM services, including payroll, tax filing, time and attendance, HR, and other related services to small and medium-sized employers. The company also provides transaction processing services, such as end-to-end encryption and tokenization; high speed network and authorization; batch processing; gift cards; fraud protection; and Website or payment application services; and MAGIC, a payments gateway that provides real-time integrated solutions to merchants. In addition, it provides low-cost money management and payment services to unbanked and under-banked employees through prepaid debit cards. The company was formerly known as Universal Business Payment Solutions Acquisition Corporation and changed its name to JetPay Corporation in August 2013. JetPay Corporation is headquartered in Center Valley, Pennsylvania.

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