China Green Agriculture (NYSE:CGA) and American Vanguard (NYSE:AVD) are both small-cap basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, analyst recommendations, earnings, valuation, dividends and institutional ownership.
This is a summary of current ratings and target prices for China Green Agriculture and American Vanguard, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|China Green Agriculture||0||0||0||0||N/A|
American Vanguard has a consensus target price of $29.00, suggesting a potential upside of 68.60%. Given American Vanguard’s higher possible upside, analysts plainly believe American Vanguard is more favorable than China Green Agriculture.
Insider and Institutional Ownership
4.2% of China Green Agriculture shares are held by institutional investors. Comparatively, 76.4% of American Vanguard shares are held by institutional investors. 30.3% of China Green Agriculture shares are held by insiders. Comparatively, 5.2% of American Vanguard shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares China Green Agriculture and American Vanguard’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|China Green Agriculture||$287.05 million||0.08||-$6.93 million||N/A||N/A|
|American Vanguard||$355.05 million||1.47||$20.27 million||$0.57||30.18|
American Vanguard has higher revenue and earnings than China Green Agriculture.
American Vanguard pays an annual dividend of $0.08 per share and has a dividend yield of 0.5%. China Green Agriculture does not pay a dividend. American Vanguard pays out 14.0% of its earnings in the form of a dividend. American Vanguard has increased its dividend for 2 consecutive years.
Volatility and Risk
China Green Agriculture has a beta of 1.82, suggesting that its stock price is 82% more volatile than the S&P 500. Comparatively, American Vanguard has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500.
This table compares China Green Agriculture and American Vanguard’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|China Green Agriculture||-1.06%||-0.73%||-0.62%|
American Vanguard beats China Green Agriculture on 12 of the 15 factors compared between the two stocks.
About China Green Agriculture
China Green Agriculture, Inc., through its subsidiaries, engages in the research, development, production, and sale of various types of fertilizers and agricultural products. The company operates in three segments: Jinong, Gufeng, and Yuxing. Its fertilizer products include humic acid-based compound fertilizers, compound fertilizers, blended fertilizers, organic compound fertilizers, slow-release fertilizers, highly-concentrated water-soluble fertilizers, and mixed organic-inorganic compound fertilizers. The company markets its fertilizer products to private wholesalers and retailers of agricultural farm products. It also develops, produces, and markets fruits, vegetables, flowers, and colored seedlings. The company sells its decorative flowers to end-users, such as flower shops, luxury hotels, and government agencies; fruits and vegetables to supermarkets and upscale restaurants; and seedlings to city planning departments. As of June 30, 2018, it operated a network of 1,959 regional distributors covering 22 provinces, 4 autonomous regions, and 4 central government-controlled municipalities in China. The company also exports its products through contracted distributors to India and Africa. China Green Agriculture, Inc. is based in Xi'an, the People's Republic of China.
About American Vanguard
American Vanguard Corporation, through its subsidiaries, develops, manufactures, and markets specialty chemicals for agricultural, commercial, and consumer uses in the United States and internationally. The company manufactures and formulates chemicals, including insecticides, fungicides, herbicides, molluscicides, growth regulators, and soil fumigants in liquid, powder, and granular forms for crops, turf and ornamental plants, and human and animal health protection. It also markets and distributes end-use chemical and biological products for crop applications; and distributes technology based pesticide solutions for greenhouse and nursery production applications, as well as offers formulations, such as PCNB, chlorothalonil, and propiconazole. The company distributes its products through national distribution companies and buying groups or co-operatives; and through sales offices and sales force executives. American Vanguard Corporation was founded in 1969 and is headquartered in Newport Beach, California.
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