Analyzing Balchem (NASDAQ:BCPC) and BioLargo (NASDAQ:BLGO)

BioLargo (NASDAQ:BLGO) and Balchem (NASDAQ:BCPC) are both construction companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, valuation, earnings and dividends.

Analyst Recommendations

This is a summary of current ratings and price targets for BioLargo and Balchem, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BioLargo	0	0	0	0	N/A
Balchem	0	0	1	0	3.00

Balchem has a consensus price target of $185.00, indicating a potential upside of 7.43%. Given Balchem’s higher possible upside, analysts clearly believe Balchem is more favorable than BioLargo.

Insider & Institutional Ownership

0.0% of BioLargo shares are held by institutional investors. Comparatively, 87.9% of Balchem shares are held by institutional investors. 20.3% of BioLargo shares are held by company insiders. Comparatively, 1.3% of Balchem shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility & Risk

BioLargo has a beta of 0.18, meaning that its stock price is 82% less volatile than the S&P 500. Comparatively, Balchem has a beta of 0.65, meaning that its stock price is 35% less volatile than the S&P 500.

Valuation and Earnings

This table compares BioLargo and Balchem”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BioLargo	$12.23 million	5.88	-$3.50 million	($0.03)	-8.06
Balchem	$932.39 million	5.99	$108.54 million	$3.54	48.65

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.

Profitability

This table compares BioLargo and Balchem’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BioLargo	-16.53%	-58.35%	-32.12%
Balchem	12.52%	10.94%	7.34%

Summary

Balchem beats BioLargo on 12 of the 13 factors compared between the two stocks.

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.

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.