Cabot Corporation (CBT) vs Quaker Houghton (KWR)

Cabot Corporation and Quaker Houghton are both Specialty Chemicals companies. Cabot Corporation is the larger, with a market value of $4.1B against $2.7B — 1.5× the size. Cabot Corporation trades at the lower P/E: 22.1× against 29.1×. Quaker Houghton grew revenue faster over the last twelve months: 7.79% against −4.74%. Cabot Corporation has the higher net margin (5.28% vs 4.94%) and the higher return on invested capital (11.2% vs 4.53%). Both pay a dividend; Cabot Corporation yields more (2.07% vs 0.48%). Across the 22 metrics below, Cabot Corporation leads on 17 and Quaker Houghton on 5.

Valuation

Metric CBT KWR Specialty Chemicals median
P/E 22.12 29.06 24.83
P/S 1.12 1.41 1.46
P/B 2.34 2.02 1.76
Price to free cash flow 13.19 37.46 19.84
EV/EBITDA 7.56 13.92 13.18
EV/Sales 1.40 1.78 1.84
Earnings yield 4.52% 3.44% 2.11%
Free cash flow yield 7.58% 2.67% 2.29%

Profitability

Metric CBT KWR Specialty Chemicals median
Gross margin 22.70% 36.06% 29.23%
Operating margin 13.57% 7.70% 3.63%
Net margin 5.28% 4.94% 2.89%
Free cash flow margin 8.48% 3.78% 3.78%
Return on equity 11.24% 7.17% 3.62%
Return on assets 4.92% 3.43% 0.35%
Return on invested capital 11.18% 4.53% 2.75%

Growth

Metric CBT KWR Specialty Chemicals median
Revenue growth (TTM) (4.74%) 7.79% 4.51%
EPS growth (last fiscal year) (10.42%) (102.15%) —
Revenue growth, 5-year CAGR 7.27% 5.90% 6.30%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric CBT KWR Specialty Chemicals median
Debt to equity 0.73 0.63 0.54
Current ratio 1.47 2.46 1.94
Net debt to EBITDA 1.13 4.53 2.03

Dividend

Metric CBT KWR Specialty Chemicals median
Dividend yield 2.07% 0.48% 1.69%
Payout ratio 0.29 3.66 0.25

Size

Metric CBT KWR Specialty Chemicals median
Market cap 4.06b 2.74b 2.43b

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