Contrasting Rayonier Advanced Materials (NYSE:RYAM) & Orbia Advance (OTCMKTS:MXCHF)

Orbia Advance (OTCMKTS:MXCHF) and Rayonier Advanced Materials (NYSE:RYAM) are both basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, valuation, institutional ownership, risk, dividends, earnings and analyst recommendations.

Profitability

This table compares Orbia Advance and Rayonier Advanced Materials’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Orbia Advance	N/A	N/A	N/A
Rayonier Advanced Materials	-4.82%	-3.96%	-1.38%

Insider and Institutional Ownership

14.5% of Orbia Advance shares are held by institutional investors. Comparatively, 68.6% of Rayonier Advanced Materials shares are held by institutional investors. 3.1% of Rayonier Advanced Materials shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Orbia Advance and Rayonier Advanced Materials”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Orbia Advance	N/A	N/A	N/A	$0.08	12.15
Rayonier Advanced Materials	$1.64 billion	0.29	-$101.83 million	($1.18)	-6.22

Orbia Advance has higher earnings, but lower revenue than Rayonier Advanced Materials. Rayonier Advanced Materials is trading at a lower price-to-earnings ratio than Orbia Advance, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings and recommmendations for Orbia Advance and Rayonier Advanced Materials, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Orbia Advance	0	0	0	0	N/A
Rayonier Advanced Materials	0	0	1	0	3.00

Rayonier Advanced Materials has a consensus price target of $10.00, indicating a potential upside of 36.24%. Given Rayonier Advanced Materials’ higher possible upside, analysts clearly believe Rayonier Advanced Materials is more favorable than Orbia Advance.

About Orbia Advance

Orbia Advance Corporation, S.A.B. de C.V. provides products and solutions for precision agriculture, building and infrastructure, fluorinated, polymer, and connectivity sectors worldwide. The company offers irrigation systems, agricultural and greenhouse projects, digital farming technologies, and related services; and connectivity solutions, including conduits, cable-in conduit, and other HDPE products and solutions. It also provides water delivering solutions for drinking water supply, sanitation, and urban water resilience; fluorine and downstream products, comprising fluorspar mine and produces intermediates, refrigerants, and propellants for used in automotive, infrastructure, semiconductor, health, medicine, climate control, food cold chain, energy storage, computing, and telecommunications applications; and general and specialty resins, PVC, and compounds and additives for stabilizers and plasticizers, as well as compounds formulated from polyolefin, thermoplastic polyurethane, and thermoplastic elastomer polymers for various applications. The company was formerly known as Mexichem, S.A.B. de C.V. and changed its name to Orbia Advance Corporation, S.A.B. de C.V. in August 2019. Orbia Advance Corporation, S.A.B. de C.V. was founded in 1953 and is headquartered in Mexico City, Mexico.

About Rayonier Advanced Materials

Rayonier Advanced Materials Inc. manufactures and sells cellulose specialty products in the United States, China, Latin America, Canada, Japan, Europe, Latin America, other Asian countries, and internationally. It operates through High Purity Cellulose, Paperboard, and High-Yield Pulp segments. The company’s products include cellulose specialties, which are natural polymers that are used as raw materials to manufacture a range of consumer-oriented products, such as liquid crystal displays, impact-resistant plastics, thickeners for food products, pharmaceuticals, cosmetics, cigarette filters, high-tenacity rayon yarn for tires and industrial hoses, food casings, paints, and lacquers. It also offers commodity products, such as commodity viscose pulp used in woven applications, including rayon textiles for clothing and other fabrics, as well as in non-woven applications comprising baby wipes, cosmetic and personal wipes, industrial wipes, and mattress ticking; and absorbent materials consisting of fluff fibers that are used as an absorbent medium in disposable baby diapers, feminine hygiene products, incontinence pads, convalescent bed pads, industrial towels and wipes, and non-woven fabrics. In addition, the company provides paperboards for packaging, printing documents, brochures, promotional materials, paperback books and catalog covers, file folders, tags, and lottery tickets; and high-yield pulps to produces hardwood aspen, maple, and birch species for paperboard, packaging, printing and writing papers, and various other paper products. The company was founded in 1926 and is headquartered in Jacksonville, Florida.