Element Solutions Inc. (ESI) vs Solstice Advanced Materials Inc. (SOLS)

Element Solutions Inc. and Solstice Advanced Materials Inc. are both Specialty Chemicals companies. Element Solutions Inc. and Solstice Advanced Materials Inc. are of similar size ($9.5B and $8.7B). Solstice Advanced Materials Inc. trades at the lower P/E: 27.4× against 47.4×. Element Solutions Inc. has the higher net margin (5.67% vs 5.13%) and the lower return on invested capital (5.20% vs 12.7%). Both pay a dividend; Element Solutions Inc. yields more (0.91% vs 0.38%). Across the 20 metrics below, Solstice Advanced Materials Inc. leads on 12 and Element Solutions Inc. on 8.

Valuation

Metric ESI SOLS Specialty Chemicals median
P/E 47.36 27.38 25.37
P/S 2.71 2.30 1.46
P/B 3.02 5.93 1.84
Price to free cash flow 61.65 53.77 21.16
EV/EBITDA 18.74 13.26 12.82
EV/Sales 3.32 2.62 1.85
Earnings yield 2.11% 3.65% 2.11%
Free cash flow yield 1.62% 1.86% 2.16%

Profitability

Metric ESI SOLS Specialty Chemicals median
Gross margin 38.42% 30.62% 29.23%
Operating margin 12.56% 14.36% 3.63%
Net margin 5.67% 5.13% 2.89%
Free cash flow margin 4.40% 4.27% 3.76%
Return on equity 6.53% 8.81% 3.62%
Return on assets 3.31% 7.10% 0.35%
Return on invested capital 5.20% 12.65% 2.75%

Growth

Metric ESI SOLS Specialty Chemicals median
Revenue growth (TTM) 26.61% — 4.51%
EPS growth (last fiscal year) (21.78%) (60.91%) (14.40%)
Revenue growth, 5-year CAGR 6.60% — 6.30%
Net income growth, 5-year CAGR 20.31% — 0.00%

Health

Metric ESI SOLS Specialty Chemicals median
Debt to equity 0.75 1.30 0.54
Current ratio 2.91 1.46 1.94
Net debt to EBITDA 2.03 1.85 2.03

Dividend

Metric ESI SOLS Specialty Chemicals median
Dividend yield 0.91% 0.38% 1.73%
Payout ratio 0.43 0.10 0.41

Size

Metric ESI SOLS Specialty Chemicals median
Market cap 8.66b 9.52b 2.41b

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