Alto Ingredients and Unicharm are two consumer discretionary companies that have drawn attention for their financial performance and stock potential. This article aims to compare the two companies based on various metrics including analyst recommendations, institutional ownership, earnings, risk, profitability, valuation, and dividends.
Institutional Ownership and Insights
Alto Ingredients has seen significant institutional investment, with 42.4% of its shares held by institutional investors. This high percentage indicates strong confidence among hedge funds, endowments, and large money managers regarding the company’s long-term growth potential. In contrast, only 5.3% of Alto Ingredients shares are held by insiders, which may reflect a degree of caution among company executives.
Valuation and Earnings Performance
When analyzing the financial metrics, Unicharm outperforms Alto Ingredients in terms of revenue and earnings per share (EPS). This suggests that Unicharm is currently generating more profit relative to its operations. However, Alto Ingredients is trading at a lower price-to-earnings ratio, making it appear more affordable compared to Unicharm. This situation may attract value investors looking for stocks with potential upside at a reduced cost.
Volatility and Risk Assessment
In assessing risk, Alto Ingredients has a beta of 0.51, indicating that its share price is approximately 49% less volatile than the S&P 500. On the other hand, Unicharm has an even lower beta of 0.24, suggesting its stock is 76% less volatile than the S&P 500. This reduced volatility may appeal to conservative investors seeking stability in their portfolios.
Profitability Metrics
A comparison of profitability reveals key differences between the two companies. While both companies have their strengths, the specific figures on net margins, return on equity, and return on assets may provide deeper insight into their operational efficiency and overall financial health.
Analyst Ratings and Future Outlook
According to MarketBeat.com, Alto Ingredients currently holds a consensus target price of $5.50, which implies a potential upside of 120%. This optimistic outlook, coupled with a stronger consensus rating, suggests that equities research analysts favor Alto Ingredients over Unicharm for potential growth. In total, Unicharm surpasses Alto Ingredients in 8 out of 15 financial metrics evaluated, indicating a mixed but competitive financial landscape.
Company Profiles: Alto Ingredients and Unicharm
Alto Ingredients, Inc., headquartered in Pekin, Illinois, specializes in producing, distributing, and marketing specialty alcohols and renewable fuels. Founded in 2003, the company operates three segments: Marketing and Distribution, Pekin Campus Production, and Western Production. Its products serve various markets including health, home, beauty, industrial, and agriculture, making it a versatile player in the consumer discretionary sector. The company was known as Pacific Ethanol, Inc. until it rebranded in January 2021.
Unicharm Corporation, established in 1941 and based in Tokyo, Japan, engages in the production of wellness, feminine, baby and children, pet care, and home care products. With well-known brands such as Moony, MamyPoko, and Sofy, Unicharm has established a strong market presence both domestically and internationally. The company’s diverse range of products positions it as a leader in the consumer goods sector.
In summary, while both Alto Ingredients and Unicharm present unique investment opportunities, their differing financial metrics and market positions reveal varied strengths. Investors may find value in both companies depending on their specific investment strategies and risk appetites.
