Axalta Coating Systems Ltd. (AXTA) vs Solstice Advanced Materials Inc. (SOLS)

Axalta Coating Systems Ltd. and Solstice Advanced Materials Inc. are both Specialty Chemicals companies. Solstice Advanced Materials Inc. is the larger, with a market value of $9.5B against $7.2B — 1.3× the size. Axalta Coating Systems Ltd. trades at the lower P/E: 20.5× against 27.4×. Axalta Coating Systems Ltd. has the higher net margin (6.78% vs 5.13%) and the lower return on invested capital (8.49% vs 12.7%). Across the 19 metrics below, Axalta Coating Systems Ltd. leads on 15 and Solstice Advanced Materials Inc. on 4.

Valuation

Metric AXTA SOLS Specialty Chemicals median
P/E 20.52 27.38 25.37
P/S 1.39 2.30 1.46
P/B 2.79 5.93 1.84
Price to free cash flow 14.46 53.77 21.16
EV/EBITDA 9.69 13.26 12.82
EV/Sales 1.86 2.62 1.85
Earnings yield 4.87% 3.65% 2.11%
Free cash flow yield 6.92% 1.86% 2.16%

Profitability

Metric AXTA SOLS Specialty Chemicals median
Gross margin 34.04% 30.62% 29.23%
Operating margin 13.18% 14.36% 3.63%
Net margin 6.78% 5.13% 2.89%
Free cash flow margin 9.61% 4.27% 3.76%
Return on equity 14.30% 8.81% 3.62%
Return on assets 4.51% 7.10% 0.35%
Return on invested capital 8.49% 12.65% 2.75%

Growth

Metric AXTA SOLS Specialty Chemicals median
Revenue growth (TTM) (0.92%) — 4.51%
EPS growth (last fiscal year) (2.25%) (60.91%) (14.40%)
Revenue growth, 5-year CAGR 6.48% — 6.30%
Net income growth, 5-year CAGR 25.46% — 0.00%

Health

Metric AXTA SOLS Specialty Chemicals median
Debt to equity 1.19 1.30 0.54
Current ratio 1.53 1.46 1.94
Net debt to EBITDA 2.45 1.85 2.03

Dividend

Metric AXTA SOLS Specialty Chemicals median
Dividend yield — 0.38% 1.73%
Payout ratio — 0.10 0.41

Size

Metric AXTA SOLS Specialty Chemicals median
Market cap 7.22b 9.52b 2.41b

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