Ashland Inc. (ASH) vs Quaker Houghton (KWR)

Ashland Inc. and Quaker Houghton are both Specialty Chemicals companies. Ashland Inc. is the larger, with a market value of $3.2B against $2.7B — 1.2× the size. Quaker Houghton trades at the lower P/E: 29.1× against 60.6×. Quaker Houghton grew revenue faster over the last twelve months: 7.79% against −1.39%. Quaker Houghton has the higher net margin (4.94% vs 2.77%) and the higher return on invested capital (4.53% vs 3.05%). Both pay a dividend; Ashland Inc. yields more (1.77% vs 0.48%). Across the 22 metrics below, Quaker Houghton leads on 15 and Ashland Inc. on 7.

Valuation

Metric ASH KWR Specialty Chemicals median
P/E 60.58 29.06 24.83
P/S 1.72 1.41 1.46
P/B 1.67 2.02 1.76
Price to free cash flow 12.27 37.46 19.84
EV/EBITDA 12.38 13.92 13.18
EV/Sales 2.26 1.78 1.84
Earnings yield 1.65% 3.44% 2.11%
Free cash flow yield 8.15% 2.67% 2.29%

Profitability

Metric ASH KWR Specialty Chemicals median
Gross margin 31.54% 36.06% 29.23%
Operating margin 7.44% 7.70% 3.63%
Net margin 2.77% 4.94% 2.89%
Free cash flow margin 14.06% 3.78% 3.78%
Return on equity 0.00% 7.17% 3.62%
Return on assets 1.11% 3.43% 0.35%
Return on invested capital 3.05% 4.53% 2.75%

Growth

Metric ASH KWR Specialty Chemicals median
Revenue growth (TTM) (1.39%) 7.79% 4.51%
EPS growth (last fiscal year) (642.56%) (102.15%) —
Revenue growth, 5-year CAGR (1.98%) 5.90% 6.30%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric ASH KWR Specialty Chemicals median
Debt to equity 0.73 0.63 0.54
Current ratio 3.05 2.46 1.94
Net debt to EBITDA 6.68 4.53 2.03

Dividend

Metric ASH KWR Specialty Chemicals median
Dividend yield 1.77% 0.48% 1.69%
Payout ratio 0.32 3.66 0.25

Size

Metric ASH KWR Specialty Chemicals median
Market cap 3.16b 2.74b 2.43b

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