Innospec Inc. (IOSP) vs Kaiser Aluminum Corporation (KALU)

Innospec Inc. and Kaiser Aluminum Corporation are both in the Basic Materials sector (Specialty Chemicals and Aluminum). Innospec Inc. and Kaiser Aluminum Corporation are of similar size ($2.5B and $2.4B). Kaiser Aluminum Corporation trades at the lower P/E: 11.0× against 20.1×. Kaiser Aluminum Corporation grew revenue faster over the last twelve months: 32.8% against 2.87%. Innospec Inc. has the higher net margin (6.60% vs 5.49%) and the lower return on invested capital (7.32% vs 11.1%). Both pay a dividend; Kaiser Aluminum Corporation yields more (4.89% vs 1.19%). Across the 23 metrics below, Kaiser Aluminum Corporation leads on 15 and Innospec Inc. on 8.

Valuation

Metric IOSP KALU
P/E 20.10 10.95
P/S 1.32 0.60
P/B 1.80 2.65
Price to free cash flow 47.32 16.93
EV/EBITDA 13.05 7.44
EV/Sales 1.21 0.84
Earnings yield 4.98% 9.13%
Free cash flow yield 2.11% 5.91%

Profitability

Metric IOSP KALU
Gross margin 27.46% 14.52%
Operating margin 7.00% 8.24%
Net margin 6.60% 5.49%
Free cash flow margin 2.79% 3.57%
Return on equity 9.16% 26.40%
Return on assets 6.65% 8.37%
Return on invested capital 7.32% 11.08%

Growth

Metric IOSP KALU
Revenue growth (TTM) 2.87% 32.83%
EPS growth (last fiscal year) 228.87% 68.16%
Revenue growth, 5-year CAGR 8.31% 23.53%
Net income growth, 5-year CAGR 32.36% 31.33%

Health

Metric IOSP KALU
Debt to equity 0.00 1.10
Current ratio 2.78 2.50
Net debt to EBITDA (1.69) 3.33

Dividend

Metric IOSP KALU
Dividend yield 1.19% 4.89%
Payout ratio 0.27 4.97

Size

Metric IOSP KALU
Market cap 2.39b 2.48b

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