AgroFresh Solutions (AGFS) & STG Group (OTCMKTS:STGG) Critical Contrast

AgroFresh Solutions (NASDAQ:AGFS) and STG Group (OTCMKTS:STGG) are both basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, profitability, earnings, analyst recommendations and risk.

Insider and Institutional Ownership

83.8% of AgroFresh Solutions shares are held by institutional investors. 1.8% of AgroFresh Solutions shares are held by insiders. Comparatively, 2.0% of STG Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations for AgroFresh Solutions and STG Group, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
AgroFresh Solutions 0 1 2 0 2.67
STG Group 0 0 0 0 N/A

AgroFresh Solutions presently has a consensus price target of $5.63, indicating a potential upside of 68.16%. Given AgroFresh Solutions’ higher probable upside, equities analysts plainly believe AgroFresh Solutions is more favorable than STG Group.

Profitability

This table compares AgroFresh Solutions and STG Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
AgroFresh Solutions -18.76% -8.27% -3.42%
STG Group N/A N/A N/A

Valuation and Earnings

This table compares AgroFresh Solutions and STG Group’s gross 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 0.96 -$30.06 million ($0.56) -5.98
STG Group N/A N/A N/A N/A N/A

STG Group has lower revenue, but higher earnings than AgroFresh Solutions.

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.

STG Group Company Profile

STG Group, Inc. engages in the provision of mission-critical technology, cyber, and data solutions. Its solutions includes cyber security and secure information systems; software development, systems and services; and intelligence and analytics. The company was founded by Simon S. Lee in 1986 and is headquartered in Reston, VA.

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