Financial Analysis: AgroFresh Solutions (NASDAQ:AGFS) versus Vantage Energy Acquisition (NASDAQ:VEAC)

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

Analyst Recommendations

This is a summary of recent ratings and recommmendations for AgroFresh Solutions and Vantage Energy Acquisition, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AgroFresh Solutions 0 1 4 0 2.80
Vantage Energy Acquisition 0 0 0 0 N/A

AgroFresh Solutions currently has a consensus price target of $5.68, indicating a potential upside of 276.16%. Given AgroFresh Solutions’ higher probable upside, equities research analysts plainly believe AgroFresh Solutions is more favorable than Vantage Energy Acquisition.

Insider and Institutional Ownership

82.2% of AgroFresh Solutions shares are held by institutional investors. Comparatively, 69.9% of Vantage Energy Acquisition shares are held by institutional investors. 1.6% of AgroFresh Solutions shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares AgroFresh Solutions and Vantage Energy Acquisition’s 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%
Vantage Energy Acquisition N/A 81.14% 0.73%

Volatility and Risk

AgroFresh Solutions has a beta of 0.92, indicating that its stock price is 8% less volatile than the S&P 500. Comparatively, Vantage Energy Acquisition has a beta of 0.02, indicating that its stock price is 98% less volatile than the S&P 500.

Valuation & Earnings

This table compares AgroFresh Solutions and Vantage Energy Acquisition’s 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
Vantage Energy Acquisition N/A N/A $4.05 million N/A N/A

Vantage Energy Acquisition has lower revenue, but higher earnings than AgroFresh Solutions.

Summary

AgroFresh Solutions beats Vantage Energy Acquisition on 6 of the 10 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.

Vantage Energy Acquisition Company Profile

Vantage Energy Acquisition Corp. does not have significant operations. It intends to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more operating businesses. The company was incorporated in 2017 and is based in Englewood, Colorado.

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