Financial Analysis: Infrastructure and Energy Alternatives (NASDAQ:IEA) & AgroFresh Solutions (NASDAQ:AGFS)

AgroFresh Solutions (NASDAQ:AGFS) and Infrastructure and Energy Alternatives (NASDAQ:IEA) are both small-cap basic materials companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, risk, institutional ownership, valuation and profitability.

Profitability

This table compares AgroFresh Solutions and Infrastructure and Energy Alternatives’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AgroFresh Solutions -18.51% -8.47% -3.43%
Infrastructure and Energy Alternatives -0.14% -11.34% 3.56%

Analyst Ratings

This is a breakdown of current recommendations for AgroFresh Solutions and Infrastructure and Energy Alternatives, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AgroFresh Solutions 0 1 4 0 2.80
Infrastructure and Energy Alternatives 0 1 0 0 2.00

AgroFresh Solutions presently has a consensus target price of $5.68, indicating a potential upside of 276.16%. Infrastructure and Energy Alternatives has a consensus target price of $7.00, indicating a potential upside of 243.14%. Given AgroFresh Solutions’ stronger consensus rating and higher possible upside, equities analysts clearly believe AgroFresh Solutions is more favorable than Infrastructure and Energy Alternatives.

Institutional and Insider Ownership

82.2% of AgroFresh Solutions shares are owned by institutional investors. Comparatively, 21.6% of Infrastructure and Energy Alternatives shares are owned by institutional investors. 1.6% of AgroFresh Solutions shares are owned by insiders. Comparatively, 10.3% of Infrastructure and Energy Alternatives shares are owned 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.

Volatility and Risk

AgroFresh Solutions has a beta of 0.92, meaning that its stock price is 8% less volatile than the S&P 500. Comparatively, Infrastructure and Energy Alternatives has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500.

Valuation & Earnings

This table compares AgroFresh Solutions and Infrastructure and Energy Alternatives’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
AgroFresh Solutions $178.79 million 0.43 -$30.06 million ($0.56) -2.70
Infrastructure and Energy Alternatives $779.34 million 0.06 $4.24 million ($0.80) -2.55

Infrastructure and Energy Alternatives has higher revenue and earnings than AgroFresh Solutions. AgroFresh Solutions is trading at a lower price-to-earnings ratio than Infrastructure and Energy Alternatives, indicating that it is currently the more affordable of the two stocks.

Summary

AgroFresh Solutions beats Infrastructure and Energy Alternatives on 8 of the 13 factors compared between the two stocks.

AgroFresh Solutions Company Profile

AgroFresh Solutions, Inc. provides data-driven 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, plums, persimmons avocados, and bananas, as well as flowers. The company's flagship product is the SmartFresh 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, apples, pears, cherries, and blueberries. In addition, the company is developing RipeLock Quality System, a proprietary technology that extends the shelf life of bananas; FreshCloud, a suite of monitoring and screening solutions; and LandSpring, a 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.

Infrastructure and Energy Alternatives Company Profile

Infrastructure and Energy Alternatives, Inc., a diversified infrastructure construction company, provides engineering, procurement, and construction services for the renewable energy, traditional power, and civil infrastructure industries in the United States. It offers design, site development, construction, installation, and restoration of infrastructure services. The company was founded in 1947 is headquartered in Indianapolis, Indiana.

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