International Flavors & Fragrances Inc. (IFF) vs Westlake Corporation (WLK)

International Flavors & Fragrances Inc. and Westlake Corporation are both Specialty Chemicals companies. International Flavors & Fragrances Inc. is the larger, with a market value of $21.6B against $8.5B — 2.6× the size. Westlake Corporation has negative trailing earnings, so its P/E is not meaningful; International Flavors & Fragrances Inc. trades at 121×. International Flavors & Fragrances Inc. grew revenue faster over the last twelve months: 6.33% against −0.37%. International Flavors & Fragrances Inc. has the higher net margin (1.67% vs −3.87%) and the higher return on invested capital (2.52% vs −2.22%). Both pay a dividend; Westlake Corporation yields more (3.20% vs 1.85%). Across the 21 metrics below, International Flavors & Fragrances Inc. leads on 15 and Westlake Corporation on 6.

Valuation

Metric IFF WLK Specialty Chemicals median
P/E 121.48 n/m 24.46
P/S 2.01 0.74 1.64
P/B 1.65 0.93 1.88
Price to free cash flow 42.28 707.11 19.15
EV/EBITDA 17.12 16.75 12.87
EV/Sales 2.56 1.06 1.88
Earnings yield 0.82% (5.08%) 2.42%
Free cash flow yield 2.37% 0.14% 2.25%

Profitability

Metric IFF WLK Specialty Chemicals median
Gross margin 36.49% 10.78% 27.84%
Operating margin 7.15% (3.81%) 5.64%
Net margin 1.67% (3.87%) 4.19%
Free cash flow margin 4.75% 0.10% 3.49%
Return on equity 1.32% (4.64%) 2.34%
Return on assets 0.72% (2.27%) 0.45%
Return on invested capital 2.52% (2.22%) 3.21%

Growth

Metric IFF WLK Specialty Chemicals median
Revenue growth (TTM) 6.33% (0.37%) 6.39%
EPS growth (last fiscal year) (240.38%) (352.16%) (9.77%)
Revenue growth, 5-year CAGR 16.46% 8.28% 6.33%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric IFF WLK Specialty Chemicals median
Debt to equity 0.47 0.55 0.59
Current ratio 1.87 2.38 2.28
Net debt to EBITDA 7.16 8.12 2.03

Dividend

Metric IFF WLK Specialty Chemicals median
Dividend yield 1.85% 3.20% 1.80%
Payout ratio 2.25 — 0.40

Size

Metric IFF WLK Specialty Chemicals median
Market cap 21.62b 8.47b 2.08b

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