Innospec Inc. (IOSP) vs Kronos Worldwide Inc (KRO)

Innospec Inc. and Kronos Worldwide Inc are both Specialty Chemicals companies. Innospec Inc. is the larger, with a market value of $2.0B against $819.5M — 2.4× the size. Kronos Worldwide Inc has negative trailing earnings, so its P/E is not meaningful; Innospec Inc. trades at 13.9×. Kronos Worldwide Inc grew revenue faster over the last twelve months: 8.75% against 4.73%. Innospec Inc. has the higher net margin (7.49% vs −1.85%) and the higher return on invested capital (9.12% vs 2.18%). Both pay a dividend; Kronos Worldwide Inc yields more (2.81% vs 2.27%). Across the 22 metrics below, Innospec Inc. leads on 13 and Kronos Worldwide Inc on 9.

Valuation

Metric IOSP KRO Specialty Chemicals median
P/E 13.92 n/m 24.46
P/S 1.04 0.40 1.64
P/B 1.44 1.05 1.88
Price to free cash flow 52.15 8.45 19.15
EV/EBITDA 9.29 12.61 12.87
EV/Sales 0.92 0.70 1.88
Earnings yield 7.18% (4.63%) 2.42%
Free cash flow yield 1.92% 11.84% 2.25%

Profitability

Metric IOSP KRO Specialty Chemicals median
Gross margin 27.66% 15.29% 27.84%
Operating margin 8.79% 2.22% 5.64%
Net margin 7.49% (1.85%) 4.19%
Free cash flow margin 1.99% 4.78% 3.49%
Return on equity 10.47% (4.73%) 2.34%
Return on assets 7.68% (2.06%) 0.45%
Return on invested capital 9.12% 2.18% 3.21%

Growth

Metric IOSP KRO Specialty Chemicals median
Revenue growth (TTM) 4.73% 8.75% 6.39%
EPS growth (last fiscal year) 228.87% (228.00%) (9.77%)
Revenue growth, 5-year CAGR 8.31% 2.56% 6.33%
Net income growth, 5-year CAGR 32.36% 0.00% 0.00%

Health

Metric IOSP KRO Specialty Chemicals median
Debt to equity 0.00 0.69 0.59
Current ratio 2.95 3.30 2.28
Net debt to EBITDA (1.69) 18.39 2.03

Dividend

Metric IOSP KRO Specialty Chemicals median
Dividend yield 2.27% 2.81% 1.80%
Payout ratio 0.32 — 0.40

Size

Metric IOSP KRO Specialty Chemicals median
Market cap 1.95b 819.49m 2.08b

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