Quaker Houghton (KWR) vs Minerals Technologies Inc. (MTX)

Quaker Houghton and Minerals Technologies Inc. are both Specialty Chemicals companies. Quaker Houghton is the larger, with a market value of $2.6B against $1.9B — 1.4× the size. Minerals Technologies Inc. has negative trailing earnings, so its P/E is not meaningful; Quaker Houghton trades at 26.8×. Quaker Houghton grew revenue faster over the last twelve months: 8.68% against 4.76%. Quaker Houghton has the higher net margin (4.80% vs −3.11%) and the higher return on invested capital (4.50% vs −0.99%). Both pay a dividend; Quaker Houghton yields more (1.37% vs 0.79%). Across the 21 metrics below, Quaker Houghton leads on 15 and Minerals Technologies Inc. on 6.

Valuation

Metric KWR MTX Specialty Chemicals median
P/E 26.76 n/m 26.45
P/S 1.28 0.88 1.64
P/B 1.82 58.33 1.84
Price to free cash flow 65.51 14.17 21.25
EV/EBITDA 12.94 34.22 12.93
EV/Sales 1.63 1.15 1.90
Earnings yield 3.74% (3.45%) 2.47%
Free cash flow yield 1.53% 7.06% 2.20%

Profitability

Metric KWR MTX Specialty Chemicals median
Gross margin 35.78% 23.90% 27.84%
Operating margin 7.61% (1.60%) 5.64%
Net margin 4.80% (3.11%) 4.26%
Free cash flow margin 1.95% 6.24% 4.75%
Return on equity 6.98% (7.75%) 3.73%
Return on assets 3.39% (1.93%) 1.16%
Return on invested capital 4.50% (0.99%) 3.21%

Growth

Metric KWR MTX Specialty Chemicals median
Revenue growth (TTM) 8.68% 4.76% 7.03%
EPS growth (last fiscal year) (102.15%) (111.41%) (8.48%)
Revenue growth, 5-year CAGR 5.90% 5.38% 6.27%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric KWR MTX Specialty Chemicals median
Debt to equity 0.63 0.59 0.59
Current ratio 2.47 1.45 2.16
Net debt to EBITDA 4.53 4.54 2.03

Dividend

Metric KWR MTX Specialty Chemicals median
Dividend yield 1.37% 0.79% 1.84%
Payout ratio 0.37 — 0.40

Size

Metric KWR MTX Specialty Chemicals median
Market cap 2.62b 1.94b 1.95b

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