The Chemours Company (CC) vs Quaker Houghton (KWR)

The Chemours Company and Quaker Houghton are both Specialty Chemicals companies. Quaker Houghton is the larger, with a market value of $2.7B against $1.9B — 1.4× the size. The Chemours Company has negative trailing earnings, so its P/E is not meaningful; Quaker Houghton trades at 27.9×. Quaker Houghton grew revenue faster over the last twelve months: 7.79% against −0.89%. Quaker Houghton has the higher net margin (4.94% vs −5.24%) and the higher return on invested capital (4.53% vs −2.22%). Both pay a dividend; The Chemours Company yields more (2.76% vs 1.63%). Across the 20 metrics below, Quaker Houghton leads on 14 and The Chemours Company on 6.

Valuation

Metric CC KWR Specialty Chemicals median
P/E n/m 27.93 25.37
P/S 0.33 1.36 1.46
P/B n/m 1.95 1.84
Price to free cash flow 8.78 36.00 21.16
EV/EBITDA 23.57 13.49 12.82
EV/Sales 0.88 1.72 1.85
Earnings yield (15.09%) 3.58% 2.11%
Free cash flow yield 11.39% 2.78% 2.16%

Profitability

Metric CC KWR Specialty Chemicals median
Gross margin 15.28% 36.06% 29.23%
Operating margin (1.93%) 7.70% 3.63%
Net margin (5.24%) 4.94% 2.89%
Free cash flow margin 3.76% 3.78% 3.76%
Return on equity (318.32%) 7.17% 3.62%
Return on assets (4.15%) 3.43% 0.35%
Return on invested capital (2.22%) 4.53% 2.75%

Growth

Metric CC KWR Specialty Chemicals median
Revenue growth (TTM) (0.89%) 7.79% 4.51%
EPS growth (last fiscal year) (549.12%) (102.15%) (14.40%)
Revenue growth, 5-year CAGR 3.17% 5.90% 6.30%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric CC KWR Specialty Chemicals median
Debt to equity (80.67) 0.63 0.54
Current ratio 1.66 2.46 1.94
Net debt to EBITDA 12.09 4.53 2.03

Dividend

Metric CC KWR Specialty Chemicals median
Dividend yield 2.76% 1.63% 1.73%
Payout ratio — 0.46 0.41

Size

Metric CC KWR Specialty Chemicals median
Market cap 1.94b 2.73b 2.41b

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