Axalta Coating Systems Ltd. (AXTA) vs Eastman Chemical Company (EMN)

Axalta Coating Systems Ltd. and Eastman Chemical Company are both Specialty Chemicals companies. Axalta Coating Systems Ltd. and Eastman Chemical Company are of similar size ($7.8B and $7.5B). Eastman Chemical Company trades at the lower P/E: 12.0× against 23.3×. Eastman Chemical Company grew revenue faster over the last twelve months: 0.27% against 0.14%. Eastman Chemical Company has the higher net margin (6.91% vs 6.46%) and the lower return on invested capital (5.41% vs 7.99%). Across the 22 metrics below, Axalta Coating Systems Ltd. leads on 12 and Eastman Chemical Company on 10.

Valuation

Metric AXTA EMN Specialty Chemicals median
P/E 23.28 11.99 24.46
P/S 1.51 0.83 1.64
P/B 2.92 1.18 1.88
Price to free cash flow 15.68 15.99 19.15
EV/EBITDA 10.57 8.01 12.87
EV/Sales 1.96 1.24 1.88
Earnings yield 4.30% 8.34% 2.42%
Free cash flow yield 6.38% 6.25% 2.25%

Profitability

Metric AXTA EMN Specialty Chemicals median
Gross margin 33.58% 20.57% 27.84%
Operating margin 12.37% 9.59% 5.64%
Net margin 6.46% 6.91% 4.19%
Free cash flow margin 9.61% 5.18% 3.49%
Return on equity 13.38% 10.26% 2.34%
Return on assets 4.31% 4.11% 0.45%
Return on invested capital 7.99% 5.41% 3.21%

Growth

Metric AXTA EMN Specialty Chemicals median
Revenue growth (TTM) 0.14% 0.27% 6.39%
EPS growth (last fiscal year) (2.25%) (46.54%) (9.77%)
Revenue growth, 5-year CAGR 6.48% 0.65% 6.33%
Net income growth, 5-year CAGR 25.46% (0.17%) 0.00%

Health

Metric AXTA EMN Specialty Chemicals median
Debt to equity 1.12 0.70 0.59
Current ratio 1.53 1.57 2.28
Net debt to EBITDA 2.45 2.82 2.03

Dividend

Metric AXTA EMN Specialty Chemicals median
Dividend yield — 5.12% 1.80%
Payout ratio — 0.62 0.40

Size

Metric AXTA EMN Specialty Chemicals median
Market cap 7.78b 7.52b 2.08b

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