Eastman Chemical Company (EMN) vs Element Solutions Inc. (ESI)

Eastman Chemical Company and Element Solutions Inc. are both Specialty Chemicals companies. Eastman Chemical Company and Element Solutions Inc. are of similar size ($7.5B and $7.5B). Eastman Chemical Company trades at the lower P/E: 12.0× against 36.4×. Element Solutions Inc. grew revenue faster over the last twelve months: 39.6% against 0.27%. Eastman Chemical Company has the higher net margin (6.91% vs 5.87%) and the higher return on invested capital (5.41% vs 5.38%). Both pay a dividend; Eastman Chemical Company yields more (5.12% vs 1.03%). Across the 23 metrics below, Eastman Chemical Company leads on 14 and Element Solutions Inc. on 9.

Valuation

Metric EMN ESI Specialty Chemicals median
P/E 11.99 36.38 24.46
P/S 0.83 2.16 1.64
P/B 1.18 2.61 1.88
Price to free cash flow 15.99 41.01 19.15
EV/EBITDA 8.01 16.23 12.87
EV/Sales 1.24 2.69 1.88
Earnings yield 8.34% 2.75% 2.42%
Free cash flow yield 6.25% 2.44% 2.25%

Profitability

Metric EMN ESI Specialty Chemicals median
Gross margin 20.57% 36.56% 27.84%
Operating margin 9.59% 11.71% 5.64%
Net margin 6.91% 5.87% 4.19%
Free cash flow margin 5.18% 5.26% 3.49%
Return on equity 10.26% 7.38% 2.34%
Return on assets 4.11% 3.76% 0.45%
Return on invested capital 5.41% 5.38% 3.21%

Growth

Metric EMN ESI Specialty Chemicals median
Revenue growth (TTM) 0.27% 39.62% 6.39%
EPS growth (last fiscal year) (46.54%) (21.78%) (9.77%)
Revenue growth, 5-year CAGR 0.65% 6.60% 6.33%
Net income growth, 5-year CAGR (0.17%) 20.31% 0.00%

Health

Metric EMN ESI Specialty Chemicals median
Debt to equity 0.70 0.72 0.59
Current ratio 1.57 2.78 2.28
Net debt to EBITDA 2.82 2.03 2.03

Dividend

Metric EMN ESI Specialty Chemicals median
Dividend yield 5.12% 1.03% 1.80%
Payout ratio 0.62 0.38 0.40

Size

Metric EMN ESI Specialty Chemicals median
Market cap 7.52b 7.46b 2.08b

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