Innospec Inc. (IOSP) vs Quaker Houghton (KWR)

Innospec Inc. and Quaker Houghton are both Specialty Chemicals companies. Quaker Houghton is the larger, with a market value of $2.7B against $2.4B — 1.1× the size. Innospec Inc. trades at the lower P/E: 20.1× against 29.1×. Quaker Houghton grew revenue faster over the last twelve months: 7.79% against 2.87%. Innospec Inc. has the higher net margin (6.60% vs 4.94%) and the higher return on invested capital (7.32% vs 4.53%). Both pay a dividend; Innospec Inc. yields more (1.19% vs 0.48%). Across the 23 metrics below, Innospec Inc. leads on 17 and Quaker Houghton on 6.

Valuation

Metric IOSP KWR Specialty Chemicals median
P/E 20.10 29.06 24.83
P/S 1.32 1.41 1.46
P/B 1.80 2.02 1.76
Price to free cash flow 47.32 37.46 19.84
EV/EBITDA 13.05 13.92 13.18
EV/Sales 1.21 1.78 1.84
Earnings yield 4.98% 3.44% 2.11%
Free cash flow yield 2.11% 2.67% 2.29%

Profitability

Metric IOSP KWR Specialty Chemicals median
Gross margin 27.46% 36.06% 29.23%
Operating margin 7.00% 7.70% 3.63%
Net margin 6.60% 4.94% 2.89%
Free cash flow margin 2.79% 3.78% 3.78%
Return on equity 9.16% 7.17% 3.62%
Return on assets 6.65% 3.43% 0.35%
Return on invested capital 7.32% 4.53% 2.75%

Growth

Metric IOSP KWR Specialty Chemicals median
Revenue growth (TTM) 2.87% 7.79% 4.51%
EPS growth (last fiscal year) 228.87% (102.15%) —
Revenue growth, 5-year CAGR 8.31% 5.90% 6.30%
Net income growth, 5-year CAGR 32.36% 0.00% 0.00%

Health

Metric IOSP KWR Specialty Chemicals median
Debt to equity 0.00 0.63 0.54
Current ratio 2.78 2.46 1.94
Net debt to EBITDA (1.69) 4.53 2.03

Dividend

Metric IOSP KWR Specialty Chemicals median
Dividend yield 1.19% 0.48% 1.69%
Payout ratio 0.27 3.66 0.25

Size

Metric IOSP KWR Specialty Chemicals median
Market cap 2.39b 2.74b 2.43b

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