Ecovyst Inc. (ECVT) vs Innospec Inc. (IOSP)

Ecovyst Inc. and Innospec Inc. are both Specialty Chemicals companies. Innospec Inc. is the larger, with a market value of $2.0B against $1.1B — 1.8× the size. Ecovyst Inc. has negative trailing earnings, so its P/E is not meaningful; Innospec Inc. trades at 13.9×. Ecovyst Inc. grew revenue faster over the last twelve months: 39.8% against 4.73%. Innospec Inc. has the higher net margin (7.49% vs −7.06%) and the higher return on invested capital (9.12% vs 5.16%). Across the 21 metrics below, Innospec Inc. leads on 16 and Ecovyst Inc. on 5.

Valuation

Metric ECVT IOSP Specialty Chemicals median
P/E n/m 13.92 24.46
P/S 1.30 1.04 1.64
P/B 1.92 1.44 1.88
Price to free cash flow 15.60 52.15 19.15
EV/EBITDA 9.32 9.29 12.87
EV/Sales 1.76 0.92 1.88
Earnings yield (5.25%) 7.18% 2.42%
Free cash flow yield 6.41% 1.92% 2.25%

Profitability

Metric ECVT IOSP Specialty Chemicals median
Gross margin 21.29% 27.66% 27.84%
Operating margin 9.43% 8.79% 5.64%
Net margin (7.06%) 7.49% 4.19%
Free cash flow margin 8.31% 1.99% 3.49%
Return on equity (9.59%) 10.47% 2.34%
Return on assets (3.81%) 7.68% 0.45%
Return on invested capital 5.16% 9.12% 3.21%

Growth

Metric ECVT IOSP Specialty Chemicals median
Revenue growth (TTM) 39.77% 4.73% 6.39%
EPS growth (last fiscal year) (916.67%) 228.87% (9.77%)
Revenue growth, 5-year CAGR 7.85% 8.31% 6.33%
Net income growth, 5-year CAGR 0.00% 32.36% 0.00%

Health

Metric ECVT IOSP Specialty Chemicals median
Debt to equity 0.84 0.00 0.59
Current ratio 1.70 2.95 2.28
Net debt to EBITDA 1.35 (1.69) 2.03

Dividend

Metric ECVT IOSP Specialty Chemicals median
Dividend yield — 2.27% 1.80%
Payout ratio — 0.32 0.40

Size

Metric ECVT IOSP Specialty Chemicals median
Market cap 1.11b 1.95b 2.08b

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