Element Solutions Inc. (ESI) vs International Flavors & Fragrances Inc. (IFF)

Element Solutions Inc. and International Flavors & Fragrances Inc. are both Specialty Chemicals companies. International Flavors & Fragrances Inc. is the larger, with a market value of $23.0B against $8.7B — 2.7× the size. Element Solutions Inc. trades at the lower P/E: 47.4× against 83.2×. Element Solutions Inc. grew revenue faster over the last twelve months: 26.6% against 3.49%. Element Solutions Inc. has the higher net margin (5.67% vs 2.56%) and the higher return on invested capital (5.20% vs 2.65%). Both pay a dividend; International Flavors & Fragrances Inc. yields more (1.76% vs 0.91%). Across the 23 metrics below, Element Solutions Inc. leads on 13 and International Flavors & Fragrances Inc. on 10.

Valuation

Metric ESI IFF Specialty Chemicals median
P/E 47.36 83.19 25.37
P/S 2.71 2.14 1.46
P/B 3.02 1.65 1.84
Price to free cash flow 61.65 41.51 21.16
EV/EBITDA 18.74 16.07 12.82
EV/Sales 3.32 2.61 1.85
Earnings yield 2.11% 1.20% 2.11%
Free cash flow yield 1.62% 2.41% 2.16%

Profitability

Metric ESI IFF Specialty Chemicals median
Gross margin 38.42% 36.50% 29.23%
Operating margin 12.56% 7.48% 3.63%
Net margin 5.67% 2.56% 2.89%
Free cash flow margin 4.40% 5.15% 3.76%
Return on equity 6.53% 1.95% 3.62%
Return on assets 3.31% 1.08% 0.35%
Return on invested capital 5.20% 2.65% 2.75%

Growth

Metric ESI IFF Specialty Chemicals median
Revenue growth (TTM) 26.61% 3.49% 4.51%
EPS growth (last fiscal year) (21.78%) (253.68%) (14.40%)
Revenue growth, 5-year CAGR 6.60% 16.46% 6.30%
Net income growth, 5-year CAGR 20.31% 0.00% 0.00%

Health

Metric ESI IFF Specialty Chemicals median
Debt to equity 0.75 0.41 0.54
Current ratio 2.91 2.06 1.94
Net debt to EBITDA 2.03 7.16 2.03

Dividend

Metric ESI IFF Specialty Chemicals median
Dividend yield 0.91% 1.76% 1.73%
Payout ratio 0.43 1.47 0.41

Size

Metric ESI IFF Specialty Chemicals median
Market cap 8.66b 23.04b 2.41b

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