International Flavors & Fragrances Inc. (IFF) vs PPG Industries, Inc. (PPG)

International Flavors & Fragrances Inc. and PPG Industries, Inc. are both Specialty Chemicals companies. International Flavors & Fragrances Inc. and PPG Industries, Inc. are of similar size ($23.6B and $21.9B). PPG Industries, Inc. trades at the lower P/E: 15.3× against 78.6×. PPG Industries, Inc. grew revenue faster over the last twelve months: 4.99% against 3.49%. PPG Industries, Inc. has the higher net margin (9.57% vs 2.56%) and the higher return on invested capital (9.87% vs 2.65%). Both pay a dividend; International Flavors & Fragrances Inc. yields more (4.00% vs 1.92%). Across the 23 metrics below, PPG Industries, Inc. leads on 18 and International Flavors & Fragrances Inc. on 5.

Valuation

Metric IFF PPG Specialty Chemicals median
P/E 78.61 15.32 24.83
P/S 2.02 1.46 1.46
P/B 1.56 2.79 1.76
Price to free cash flow 39.23 17.04 19.84
EV/EBITDA 15.35 10.72 13.18
EV/Sales 2.49 1.78 1.84
Earnings yield 1.27% 6.53% 2.11%
Free cash flow yield 2.55% 5.87% 2.29%

Profitability

Metric IFF PPG Specialty Chemicals median
Gross margin 36.50% 40.90% 29.23%
Operating margin 7.48% 13.35% 3.63%
Net margin 2.56% 9.57% 2.89%
Free cash flow margin 5.15% 8.57% 3.78%
Return on equity 1.95% 19.25% 3.62%
Return on assets 1.08% 7.04% 0.35%
Return on invested capital 2.65% 9.87% 2.75%

Growth

Metric IFF PPG Specialty Chemicals median
Revenue growth (TTM) 3.49% 4.99% 4.51%
EPS growth (last fiscal year) (253.68%) 46.11% —
Revenue growth, 5-year CAGR 16.46% 2.79% 6.30%
Net income growth, 5-year CAGR 0.00% 8.28% 0.00%

Health

Metric IFF PPG Specialty Chemicals median
Debt to equity 0.41 0.80 0.54
Current ratio 2.06 1.58 1.94
Net debt to EBITDA 7.16 1.89 2.03

Dividend

Metric IFF PPG Specialty Chemicals median
Dividend yield 4.00% 1.92% 1.69%
Payout ratio 1.24 0.45 0.25

Size

Metric IFF PPG Specialty Chemicals median
Market cap 21.90b 23.63b 2.43b

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