Innospec Inc. (IOSP) vs Ingevity Corporation (NGVT)

Innospec Inc. and Ingevity Corporation are both Specialty Chemicals companies. Innospec Inc. and Ingevity Corporation are of similar size ($2.5B and $2.4B). Innospec Inc. trades at the lower P/E: 20.1× against 47.4×. Ingevity Corporation grew revenue faster over the last twelve months: 10.6% against 2.87%. Innospec Inc. has the higher net margin (6.60% vs 4.65%) and the lower return on invested capital (7.32% vs 9.33%). Across the 22 metrics below, Innospec Inc. leads on 14 and Ingevity Corporation on 8.

Valuation

Metric IOSP NGVT Specialty Chemicals median
P/E 20.10 47.40 24.83
P/S 1.32 2.18 1.46
P/B 1.80 54.00 1.76
Price to free cash flow 47.32 16.35 19.84
EV/EBITDA 13.05 14.40 13.18
EV/Sales 1.21 2.95 1.84
Earnings yield 4.98% 2.11% 2.11%
Free cash flow yield 2.11% 6.12% 2.29%

Profitability

Metric IOSP NGVT Specialty Chemicals median
Gross margin 27.46% 41.13% 29.23%
Operating margin 7.00% 11.83% 3.63%
Net margin 6.60% 4.65% 2.89%
Free cash flow margin 2.79% 13.35% 3.78%
Return on equity 9.16% 64.44% 3.62%
Return on assets 6.65% 3.16% 0.35%
Return on invested capital 7.32% 9.33% 2.75%

Growth

Metric IOSP NGVT Specialty Chemicals median
Revenue growth (TTM) 2.87% 10.63% 4.51%
EPS growth (last fiscal year) 228.87% 61.10% —
Revenue growth, 5-year CAGR 8.31% (0.81%) 6.30%
Net income growth, 5-year CAGR 32.36% 0.00% 0.00%

Health

Metric IOSP NGVT Specialty Chemicals median
Debt to equity 0.00 22.52 0.54
Current ratio 2.78 1.61 1.94
Net debt to EBITDA (1.69) 4.40 2.03

Dividend

Metric IOSP NGVT Specialty Chemicals median
Dividend yield 1.19% — 1.69%
Payout ratio 0.27 0.00 0.25

Size

Metric IOSP NGVT Specialty Chemicals median
Market cap 2.39b 2.47b 2.43b

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