Eastman Chemical Company (EMN) vs Solstice Advanced Materials Inc. (SOLS)

Eastman Chemical Company and Solstice Advanced Materials Inc. are both Specialty Chemicals companies. Solstice Advanced Materials Inc. is the larger, with a market value of $9.0B against $7.6B — 1.2× the size. Eastman Chemical Company trades at the lower P/E: 17.3× against 26.2×. Solstice Advanced Materials Inc. has the higher net margin (5.13% vs 4.99%) and the higher return on invested capital (12.7% vs 4.72%). Across the 19 metrics below, Eastman Chemical Company leads on 12 and Solstice Advanced Materials Inc. on 7.

Valuation

Metric EMN SOLS Specialty Chemicals median
P/E 17.30 26.18 24.83
P/S 0.86 2.20 1.46
P/B 1.24 5.67 1.76
Price to free cash flow 14.20 51.41 19.84
EV/EBITDA 8.96 12.75 13.18
EV/Sales 1.29 2.52 1.84
Earnings yield 5.78% 3.82% 2.11%
Free cash flow yield 7.04% 1.95% 2.29%

Profitability

Metric EMN SOLS Specialty Chemicals median
Gross margin 19.88% 30.62% 29.23%
Operating margin 8.47% 14.36% 3.63%
Net margin 4.99% 5.13% 2.89%
Free cash flow margin 6.08% 4.27% 3.78%
Return on equity 7.32% 8.81% 3.62%
Return on assets 2.88% 7.10% 0.35%
Return on invested capital 4.72% 12.65% 2.75%

Growth

Metric EMN SOLS Specialty Chemicals median
Revenue growth (TTM) (4.53%) — 4.51%
EPS growth (last fiscal year) (46.54%) (60.91%) —
Revenue growth, 5-year CAGR 0.65% — 6.30%
Net income growth, 5-year CAGR (0.17%) — 0.00%

Health

Metric EMN SOLS Specialty Chemicals median
Debt to equity 0.72 1.30 0.54
Current ratio 1.50 1.46 1.94
Net debt to EBITDA 2.82 1.85 2.03

Dividend

Metric EMN SOLS Specialty Chemicals median
Dividend yield 3.95% — 1.69%
Payout ratio 0.53 — 0.25

Size

Metric EMN SOLS Specialty Chemicals median
Market cap 7.57b 8.99b 2.43b

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