Balchem (NASDAQ:BCPC – Get Free Report) and BioLargo (NASDAQ:BLGO – Get Free Report) are both basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, valuation, risk, earnings and dividends.
Risk and Volatility
Balchem has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500. Comparatively, BioLargo has a beta of 0.2, meaning that its share price is 80% less volatile than the S&P 500.
Analyst Ratings
This is a breakdown of recent ratings and price targets for Balchem and BioLargo, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Balchem | 0 | 0 | 1 | 0 | 3.00 |
| BioLargo | 0 | 0 | 0 | 0 | N/A |
Profitability
This table compares Balchem and BioLargo’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Balchem | 12.52% | 10.94% | 7.34% |
| BioLargo | -16.53% | -58.35% | -32.12% |
Institutional & Insider Ownership
87.9% of Balchem shares are owned by institutional investors. Comparatively, 0.0% of BioLargo shares are owned by institutional investors. 1.3% of Balchem shares are owned by insiders. Comparatively, 20.3% of BioLargo shares are owned 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.
Valuation and Earnings
This table compares Balchem and BioLargo”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Balchem | $932.39 million | 6.08 | $108.54 million | $3.54 | 49.36 |
| BioLargo | $12.23 million | 5.89 | -$3.50 million | ($0.03) | -8.00 |
Balchem has higher revenue and earnings than BioLargo. BioLargo is trading at a lower price-to-earnings ratio than Balchem, indicating that it is currently the more affordable of the two stocks.
Summary
Balchem beats BioLargo on 12 of the 13 factors compared between the two stocks.
About Balchem
Balchem Corporation develops, manufactures, and markets specialty performance ingredients and products for the nutritional, food, pharmaceutical, animal health, medical device sterilization, plant nutrition, and industrial markets worldwide. It operates through three segments: Human Nutrition and Health, Animal Nutrition and Health, and Specialty Products. The Human Nutrition & Health segment supplies ingredients in the food and beverage industry. Its products include spray dried and emulsified powders, extrusion and agglomeration, blended lipid systems, liquid flavor delivery systems, juice and dairy bases, chocolate systems, and cereal systems, as well as ice cream bases and variegates. This segment also offers specialty vitamin K2; microencapsulation solutions for various applications; and human grade choline nutrients and mineral amino acid chelated products for nutrition and health applications. The Animal Nutrition & Health segment provides microencapsulated products to enhance health and milk production, and delivering nutrient supplements in ruminant animals; chelation technology, which offers enhanced nutrient absorption for various species of production and companion animals; methylsulfonylmethane; and choline chloride, a nutrient for monogastric animal health. The Specialty Products segment distributes ethylene oxide and ammonia primarily for use in the health care industry; and single use canisters for sterilizing re-usable devices. This segment also markets and sells propylene oxide, a fumigant to aid in the control of insects and microbiological spoilage, as well as to reduce bacterial and mold contamination in shell and processed nut meats, processed spices, cacao beans, cocoa powder, raisins, figs, and prunes; and chelated minerals for high value crops. It sells its products through sales force, independent distributors, and sales agents. The company was incorporated in 1967 and is headquartered in Montvale, New Jersey.
About BioLargo
BioLargo, Inc. invents, develops, and commercializes various platform technologies. Its technologies solve challenging environmental problems comprising per – and polyfluoroalkyl substances (PFAS) water contamination, advanced water and wastewater treatment, industrial odor and volatile organic compounds control, air quality control, infection control, and myriad environmental remediation. The company provides full-service environmental engineering services. BioLargo, Inc. was incorporated in 1991 and is based in Westminster, California.
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