Axalta Coating Systems Ltd. (AXTA) vs Sociedad Quimica y Minera S.A. (SQM)

Axalta Coating Systems Ltd. and Sociedad Quimica y Minera S.A. are both Specialty Chemicals companies. Sociedad Quimica y Minera S.A. is the larger, with a market value of $8.6B against $7.2B — 1.2× the size. Sociedad Quimica y Minera S.A. trades at the lower P/E: 11.3× against 20.5×. Sociedad Quimica y Minera S.A. grew revenue faster over the last twelve months: 90.2% against −0.92%. Sociedad Quimica y Minera S.A. has the higher net margin (17.8% vs 6.78%) and the higher return on invested capital (16.9% vs 8.49%). Across the 22 metrics below, Sociedad Quimica y Minera S.A. leads on 13 and Axalta Coating Systems Ltd. on 9.

Valuation

Metric AXTA SQM Specialty Chemicals median
P/E 20.52 11.30 25.37
P/S 1.39 2.02 1.46
P/B 2.79 3.11 1.84
Price to free cash flow 14.46 105.14 21.16
EV/EBITDA 9.69 17.80 12.82
EV/Sales 1.86 2.23 1.85
Earnings yield 4.87% 8.85% 2.11%
Free cash flow yield 6.92% 0.95% 2.16%

Profitability

Metric AXTA SQM Specialty Chemicals median
Gross margin 34.04% 37.50% 29.23%
Operating margin 13.18% 33.28% 3.63%
Net margin 6.78% 17.80% 2.89%
Free cash flow margin 9.61% 0.00% 3.76%
Return on equity 14.30% 0.00% 3.62%
Return on assets 4.51% 10.78% 0.35%
Return on invested capital 8.49% 16.86% 2.75%

Growth

Metric AXTA SQM Specialty Chemicals median
Revenue growth (TTM) (0.92%) 90.22% 4.51%
EPS growth (last fiscal year) (2.25%) (14.95%) (14.40%)
Revenue growth, 5-year CAGR 6.48% 20.29% 6.30%
Net income growth, 5-year CAGR 25.46% 29.02% 0.00%

Health

Metric AXTA SQM Specialty Chemicals median
Debt to equity 1.19 0.60 0.54
Current ratio 1.53 2.61 1.94
Net debt to EBITDA 2.45 2.32 2.03

Dividend

Metric AXTA SQM Specialty Chemicals median
Dividend yield — 1.69% 1.73%
Payout ratio — 0.19 0.41

Size

Metric AXTA SQM Specialty Chemicals median
Market cap 7.22b 8.64b 2.41b

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