Ashland Inc. (ASH) vs Ingevity Corporation (NGVT)

Ashland Inc. and Ingevity Corporation are both Specialty Chemicals companies. Ashland Inc. is the larger, with a market value of $3.2B against $2.5B — 1.3× the size. Ingevity Corporation trades at the lower P/E: 47.4× against 60.6×. Ingevity Corporation grew revenue faster over the last twelve months: 10.6% against −1.39%. Ingevity Corporation has the higher net margin (4.65% vs 2.77%) and the higher return on invested capital (9.33% vs 3.05%). Across the 21 metrics below, Ingevity Corporation leads on 12 and Ashland Inc. on 9.

Valuation

Metric ASH NGVT Specialty Chemicals median
P/E 60.58 47.40 24.83
P/S 1.72 2.18 1.46
P/B 1.67 54.00 1.76
Price to free cash flow 12.27 16.35 19.84
EV/EBITDA 12.38 14.40 13.18
EV/Sales 2.26 2.95 1.84
Earnings yield 1.65% 2.11% 2.11%
Free cash flow yield 8.15% 6.12% 2.29%

Profitability

Metric ASH NGVT Specialty Chemicals median
Gross margin 31.54% 41.13% 29.23%
Operating margin 7.44% 11.83% 3.63%
Net margin 2.77% 4.65% 2.89%
Free cash flow margin 14.06% 13.35% 3.78%
Return on equity 0.00% 64.44% 3.62%
Return on assets 1.11% 3.16% 0.35%
Return on invested capital 3.05% 9.33% 2.75%

Growth

Metric ASH NGVT Specialty Chemicals median
Revenue growth (TTM) (1.39%) 10.63% 4.51%
EPS growth (last fiscal year) (642.56%) 61.10% —
Revenue growth, 5-year CAGR (1.98%) (0.81%) 6.30%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric ASH NGVT Specialty Chemicals median
Debt to equity 0.73 22.52 0.54
Current ratio 3.05 1.61 1.94
Net debt to EBITDA 6.68 4.40 2.03

Dividend

Metric ASH NGVT Specialty Chemicals median
Dividend yield 1.77% — 1.69%
Payout ratio 0.32 0.00 0.25

Size

Metric ASH NGVT Specialty Chemicals median
Market cap 3.16b 2.47b 2.43b

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