Financial Review: Aspen Aerogels (NYSE:ASPN) and Flexible Solutions International (NYSE:FSI)

Flexible Solutions International (NYSE:FSIGet Free Report) and Aspen Aerogels (NYSE:ASPNGet Free Report) are both small-cap materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, risk, valuation, profitability and earnings.

Risk & Volatility

Flexible Solutions International has a beta of 1.7, suggesting that its stock price is 70% more volatile than the S&P 500. Comparatively, Aspen Aerogels has a beta of 2.97, suggesting that its stock price is 197% more volatile than the S&P 500.

Insider & Institutional Ownership

54.3% of Flexible Solutions International shares are held by institutional investors. Comparatively, 97.6% of Aspen Aerogels shares are held by institutional investors. 35.8% of Flexible Solutions International shares are held by company insiders. Comparatively, 3.0% of Aspen Aerogels shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Flexible Solutions International and Aspen Aerogels”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Flexible Solutions International $35.58 million 2.08 $2.78 million ($0.24) -24.17
Aspen Aerogels $271.10 million 1.49 -$389.55 million ($1.53) -3.18

Flexible Solutions International has higher earnings, but lower revenue than Aspen Aerogels. Flexible Solutions International is trading at a lower price-to-earnings ratio than Aspen Aerogels, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Flexible Solutions International and Aspen Aerogels, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Flexible Solutions International 0 1 0 1 3.00
Aspen Aerogels 2 1 4 0 2.29

Aspen Aerogels has a consensus price target of $5.94, suggesting a potential upside of 22.05%. Given Aspen Aerogels’ higher possible upside, analysts plainly believe Aspen Aerogels is more favorable than Flexible Solutions International.

Profitability

This table compares Flexible Solutions International and Aspen Aerogels’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Flexible Solutions International 10.80% 10.61% 7.32%
Aspen Aerogels -62.45% -31.12% -17.33%

Summary

Flexible Solutions International beats Aspen Aerogels on 10 of the 15 factors compared between the two stocks.

About Flexible Solutions International

(Get Free Report)

Flexible Solutions International, Inc., together with its subsidiaries, develops, manufactures, and markets specialty chemicals that slow the evaporation of water in Canada, the United States, and internationally. The company operates in two segments, Energy and Water Conservation Products, and Biodegradable Polymers. The company offers thermal polyaspartates (TPAs) for oilfields to reduce scale and corrosion in various water systems; and for the agricultural industry to reduce fertilizer crystallization before, during, and after application, as well as to prevent crystal formation between fertilizer and minerals present in the soil. It also provides TPAs for irrigation to prevent early plugging of drip irrigation ports, reduce maintenance costs, and lengthen the life of equipment; TPAs for cleaning products to prevents the re-deposition of dirt onto the surfaces; and TPAs as additives for household laundry detergents, consumer care products, and pesticides. In addition, the company offers nitrogen conservation products for agriculture that slow down nitrogen loss from fields. Further, it provides HEATSAVR, a chemical product for use in swimming pools and spas that forms a thin and transparent layer on the water's surface; and WATERSAVR to reduce water evaporation in reservoirs, potable water storage tanks, livestock watering ponds, aqueducts, canals, and irrigation ditches, as well as for lawn and turf care, and potted and bedding plants. The company was incorporated in 1991 and is headquartered in Taber, Canada.

About Aspen Aerogels

(Get Free Report)

Aspen Aerogels, Inc. designs, develops, manufactures, and sells aerogel insulation products primarily for use in the energy infrastructure and sustainable insulation materials markets in the United States, Asia, Canada, Europe, and Latin America. It operates in two segments, Energy Industrial and Thermal Barrier. The company offers PyroThin thermal barriers for use in lithium-ion batteries in electric vehicles and energy storage industries; Pyrogel XTE that reduces the risk of corrosion under insulation in energy infrastructure operating systems; and Pyrogel HPS for applications within the power generation market. It also offers Pyrogel XTF to provide protection against fire; Cryogel Z for sub-ambient and cryogenic applications in the energy infrastructure market; Spaceloft Subsea for use in pipe-in-pipe applications in offshore oil production; and Cryogel X201, which is used in designing cold systems, such as refrigerated appliances, cold storage equipment, and aerospace systems. The company was founded in 2001 and is headquartered in Northborough, Massachusetts.

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