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AVD vs HLP

AVD
American Vanguard Corporation
BEARISH
Price
$3.50
Market Cap
$99.6M
Sector
Basic Materials
AI Confidence
88%
HLP
Hongli Group Inc.
NEUTRAL
Price
$0.89
Market Cap
$65.3M
Sector
Basic Materials
AI Confidence
80%

Valuation

P/E Ratio
AVD
--
HLP
17.78
Forward P/E
AVD
8.97
HLP
--
P/B Ratio
AVD
0.46
HLP
1.18
P/S Ratio
AVD
0.19
HLP
3.9
EV/EBITDA
AVD
203.85
HLP
32.42

Profitability

Gross Margin
AVD
24.11%
HLP
32.91%
Operating Margin
AVD
-4.37%
HLP
13.39%
Profit Margin
AVD
-21.15%
HLP
6.04%
ROE
AVD
-40.84%
HLP
2.65%
ROA
AVD
-1.62%
HLP
1.73%

Growth

Revenue Growth
AVD
0.9%
HLP
37.7%
Earnings Growth
AVD
--
HLP
--

Financial Health

Debt/Equity
AVD
0.91
HLP
0.17
Current Ratio
AVD
1.77
HLP
1.15
Quick Ratio
AVD
0.86
HLP
0.88

Dividends

Dividend Yield
AVD
--
HLP
--
Payout Ratio
AVD
0.0%
HLP
0.0%

AI Verdict

AVD BEARISH

American Vanguard Corporation (AVD) exhibits severe financial distress, as evidenced by a Piotroski F-Score of 1/9—indicating extreme weakness in operational and financial health. The company reports negative profitability across key metrics, including a -21.15% profit margin and -40.84% ROE, with no sign of sustainable earnings. Despite a low Price/Book of 0.46 and a 52-week low of $3.28, the stock remains deeply undervalued on a fundamental basis, but this is likely due to persistent losses and high risk. The absence of an Altman Z-Score and the company's negative earnings trajectory suggest significant distress risk. The recent earnings surprises are overwhelmingly negative, with a -231.11% average surprise over the last four quarters, reinforcing the bearish outlook.

Strengths
Low Price/Book ratio (0.46) suggests potential undervaluation on a balance sheet basis
Current ratio of 1.77 indicates adequate short-term liquidity
Gross margin of 24.11% shows some pricing power or cost control in operations
Risks
Piotroski F-Score of 1/9 signals extreme financial distress and poor operational performance
Negative ROE (-40.84%) and ROA (-1.62%) indicate capital is being destroyed
Consistently missing earnings estimates with massive negative surprises (e.g., -1710% in 2025-05-29)
HLP NEUTRAL

HLP exhibits a stable financial foundation with a Piotroski F-Score of 5/9 and a very conservative Debt/Equity ratio of 0.17. While the current price of $0.89 is well-supported by the Graham Number ($0.92), it trades at a significant premium to its growth-based intrinsic value of $0.35. The company is outperforming its sector peers in terms of profitability and debt management, yet it suffers from a devastating technical trend (0/100) and consistent long-term price erosion. The stock is fundamentally sound but lacks any market momentum or catalyst.

Strengths
Strong YoY revenue growth of 37.70%
Very low leverage with a Debt/Equity ratio of 0.17
Positive profit margins (6.04%) in a sector where the average is negative (-9.38%)
Risks
Severe bearish technical trend (0/100) indicating strong selling pressure
Significant discrepancy between current price and intrinsic value ($0.35)
Poor long-term price performance with a 5-year decline of 74.6%

Compare Another Pair

AVD vs HLP: Head-to-Head Comparison

This page compares American Vanguard Corporation (AVD) and Hongli Group Inc. (HLP) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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