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

Element Solutions Inc. and Solstice Advanced Materials Inc. are both Specialty Chemicals companies. Solstice Advanced Materials Inc. is the larger, with a market value of $8.8B against $7.5B — 1.2× the size. Solstice Advanced Materials Inc. trades at the lower P/E: 27.6× against 36.8×. Element Solutions Inc. grew revenue faster over the last twelve months: 39.6% against 9.62%. Solstice Advanced Materials Inc. has the higher net margin (7.79% vs 5.87%) and the higher return on invested capital (13.1% vs 5.38%). Both pay a dividend; Element Solutions Inc. yields more (1.02% vs 0.39%). Across the 21 metrics below, Solstice Advanced Materials Inc. leads on 13 and Element Solutions Inc. on 8.

Valuation

Metric ESI SOLS Specialty Chemicals median
P/E 36.85 27.63 26.45
P/S 2.19 2.20 1.64
P/B 2.64 5.83 1.84
Price to free cash flow 41.54 21.41 21.25
EV/EBITDA 16.40 12.52 12.93
EV/Sales 2.72 2.52 1.90
Earnings yield 2.71% 3.62% 2.47%
Free cash flow yield 2.41% 4.67% 2.20%

Profitability

Metric ESI SOLS Specialty Chemicals median
Gross margin 36.56% 30.90% 27.84%
Operating margin 11.71% 14.69% 5.64%
Net margin 5.87% 7.79% 4.26%
Free cash flow margin 5.26% 10.28% 4.75%
Return on equity 7.38% 13.67% 3.73%
Return on assets 3.76% 5.74% 1.16%
Return on invested capital 5.38% 13.13% 3.21%

Growth

Metric ESI SOLS Specialty Chemicals median
Revenue growth (TTM) 39.62% 9.62% 7.03%
EPS growth (last fiscal year) (21.78%) (60.91%) (8.48%)
Revenue growth, 5-year CAGR 6.60% — 6.27%
Net income growth, 5-year CAGR 20.31% — 0.00%

Health

Metric ESI SOLS Specialty Chemicals median
Debt to equity 0.72 1.31 0.59
Current ratio 2.78 1.38 2.16
Net debt to EBITDA 2.03 1.85 2.03

Dividend

Metric ESI SOLS Specialty Chemicals median
Dividend yield 1.02% 0.39% 1.84%
Payout ratio 0.38 0.11 0.40

Size

Metric ESI SOLS Specialty Chemicals median
Market cap 7.46b 8.75b 1.95b

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