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AVNT vs BHP

AVNT
Avient Corporation
NEUTRAL
Price
$37.40
Market Cap
$3.42B
Sector
Basic Materials
AI Confidence
65%
BHP
BHP Group Limited
NEUTRAL
Price
$67.52
Market Cap
$173.45B
Sector
Basic Materials
AI Confidence
72%

Valuation

P/E Ratio
AVNT
30.66
BHP
19.07
Forward P/E
AVNT
12.26
BHP
15.45
P/B Ratio
AVNT
1.44
BHP
7.19
P/S Ratio
AVNT
1.05
BHP
3.38
EV/EBITDA
AVNT
9.67
BHP
15.39

Profitability

Gross Margin
AVNT
31.92%
BHP
82.21%
Operating Margin
AVNT
9.91%
BHP
37.7%
Profit Margin
AVNT
3.49%
BHP
17.59%
ROE
AVNT
4.82%
BHP
21.99%
ROA
AVNT
3.4%
BHP
11.02%

Growth

Revenue Growth
AVNT
-1.1%
BHP
-8.2%
Earnings Growth
AVNT
-13.2%
BHP
-34.0%

Financial Health

Debt/Equity
AVNT
0.83
BHP
0.49
Current Ratio
AVNT
2.03
BHP
1.46
Quick Ratio
AVNT
1.33
BHP
1.06

Dividends

Dividend Yield
AVNT
2.92%
BHP
3.26%
Payout Ratio
AVNT
87.8%
BHP
69.9%

AI Verdict

AVNT NEUTRAL

Avient Corporation exhibits a weak financial health profile with a Piotroski F-Score of 4/9, indicating borderline stability, and lacks an Altman Z-Score to confirm safety from distress. While profitability metrics and recent earnings surprises are positive, declining revenue and earnings growth, coupled with a high payout ratio and elevated valuation, constrain long-term appeal. The stock trades above both the Graham Number ($26.67) and intrinsic value estimate ($8.54), suggesting overvaluation on defensive and growth criteria. However, strong short-term price momentum and analyst consensus of 'strong_buy' provide counterbalancing support.

Strengths
Consistent quarterly earnings beats with 3 out of last 4 quarters exceeding estimates and a strong average surprise of 1.25%
Solid gross margin of 31.92%, indicating pricing power and cost control in specialty chemicals segment
Current ratio of 2.03 and quick ratio of 1.33 reflect adequate short-term liquidity
Risks
Piotroski F-Score of 4/9 indicates weak financial health, particularly concerning profitability and leverage trends
Negative year-over-year revenue growth (-1.10%) and declining earnings (-13.20%) signal fundamental weakness
High payout ratio of 87.80% threatens dividend sustainability given earnings volatility
BHP NEUTRAL

BHP's Piotroski F-Score of 6/9 indicates stable financial health, but the absence of an Altman Z-Score limits distress risk assessment. The stock trades significantly above its Graham Number of $27.35 and intrinsic value of $24.78, reflecting a substantial premium. Despite strong profitability metrics like 37.7% operating margin and 21.99% ROE, earnings and revenue growth are sharply negative year-over-year. Analysts consensus is a hold with a $57.00 target, below current price, suggesting limited upside.

Strengths
High operating margin of 37.70% indicates strong cost control and pricing power
ROE of 21.99% exceeds sector average significantly, signaling efficient equity use
Debt/Equity of 0.49 is below sector average of 0.63, indicating conservative leverage
Risks
Revenue growth down 8.20% YoY and earnings down 34.00%, indicating deteriorating fundamentals
P/E of 19.07 is high relative to earnings contraction, increasing valuation risk
Price/Book of 7.19 is extremely elevated, suggesting overvaluation relative to book value

Compare Another Pair

AVNT vs BHP: Head-to-Head Comparison

This page compares Avient Corporation (AVNT) and BHP Group Limited (BHP) 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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