Kronos Worldwide Inc (KRO) vs Stepan Company (SCL)

Kronos Worldwide Inc and Stepan Company are both Specialty Chemicals companies. Stepan Company is the larger, with a market value of $1.5B against $819.5M — 1.9× the size. Kronos Worldwide Inc has negative trailing earnings, so its P/E is not meaningful; Stepan Company trades at 352×. Stepan Company grew revenue faster over the last twelve months: 10.0% against 8.75%. Stepan Company has the higher net margin (0.17% vs −1.85%) and the lower return on invested capital (0.86% vs 2.18%). Both pay a dividend; Kronos Worldwide Inc yields more (2.69% vs 2.36%). Across the 22 metrics below, Kronos Worldwide Inc leads on 13 and Stepan Company on 9.

Valuation

Metric KRO SCL Specialty Chemicals median
P/E n/m 351.74 26.45
P/S 0.42 0.60 1.64
P/B 1.09 1.26 1.84
Price to free cash flow 8.82 44.48 21.25
EV/EBITDA 12.93 13.60 12.93
EV/Sales 0.71 0.82 1.90
Earnings yield (4.44%) 0.28% 2.47%
Free cash flow yield 11.34% 2.25% 2.20%

Profitability

Metric KRO SCL Specialty Chemicals median
Gross margin 15.29% 11.99% 27.84%
Operating margin 2.22% 0.95% 5.64%
Net margin (1.85%) 0.17% 4.26%
Free cash flow margin 4.78% 1.23% 4.75%
Return on equity (4.73%) 0.35% 3.73%
Return on assets (2.06%) 0.18% 1.16%
Return on invested capital 2.18% 0.86% 3.21%

Growth

Metric KRO SCL Specialty Chemicals median
Revenue growth (TTM) 8.75% 10.02% 7.03%
EPS growth (last fiscal year) (228.00%) (6.82%) (8.48%)
Revenue growth, 5-year CAGR 2.56% 4.52% 6.27%
Net income growth, 5-year CAGR 0.00% (18.04%) 0.00%

Health

Metric KRO SCL Specialty Chemicals median
Debt to equity 0.69 0.52 0.59
Current ratio 3.30 1.32 2.16
Net debt to EBITDA 18.39 2.41 2.03

Dividend

Metric KRO SCL Specialty Chemicals median
Dividend yield 2.69% 2.36% 1.84%
Payout ratio — 8.32 0.40

Size

Metric KRO SCL Specialty Chemicals median
Market cap 819.49m 1.54b 1.95b

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