Cabot Corporation (CBT) vs WD-40 Company (WDFC)

Cabot Corporation and WD-40 Company 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 30.1×. WD-40 Company grew revenue faster over the last twelve months: 10.2% against −4.74%. WD-40 Company has the higher net margin (13.2% vs 5.28%) and the higher return on invested capital (23.0% vs 11.2%). Both pay a dividend; Cabot Corporation yields more (2.07% vs 1.27%). Across the 23 metrics below, WD-40 Company leads on 14 and Cabot Corporation on 9.

Valuation

Metric CBT WDFC Specialty Chemicals median
P/E 22.12 30.13 24.83
P/S 1.12 3.97 1.46
P/B 2.34 9.61 1.76
Price to free cash flow 13.19 33.51 19.84
EV/EBITDA 7.56 20.99 13.18
EV/Sales 1.40 4.03 1.84
Earnings yield 4.52% 3.32% 2.11%
Free cash flow yield 7.58% 2.98% 2.29%

Profitability

Metric CBT WDFC Specialty Chemicals median
Gross margin 22.70% 55.82% 29.23%
Operating margin 13.57% 17.48% 3.63%
Net margin 5.28% 13.19% 2.89%
Free cash flow margin 8.48% 11.88% 3.78%
Return on equity 11.24% 33.22% 3.62%
Return on assets 4.92% 18.62% 0.35%
Return on invested capital 11.18% 23.01% 2.75%

Growth

Metric CBT WDFC Specialty Chemicals median
Revenue growth (TTM) (4.74%) 10.15% 4.51%
EPS growth (last fiscal year) (10.42%) 30.92% —
Revenue growth, 5-year CAGR 7.27% 8.70% 6.30%
Net income growth, 5-year CAGR 0.00% 8.47% 0.00%

Health

Metric CBT WDFC Specialty Chemicals median
Debt to equity 0.73 0.36 0.54
Current ratio 1.47 2.65 1.94
Net debt to EBITDA 1.13 0.25 2.03

Dividend

Metric CBT WDFC Specialty Chemicals median
Dividend yield 2.07% 1.27% 1.69%
Payout ratio 0.29 0.69 0.25

Size

Metric CBT WDFC Specialty Chemicals median
Market cap 4.06b 2.65b 2.43b

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