Quaker Houghton (KWR) vs Ingevity Corporation (NGVT)

Quaker Houghton and Ingevity Corporation are both Specialty Chemicals companies. Quaker Houghton is the larger, with a market value of $2.7B against $2.5B — 1.1× the size. Quaker Houghton trades at the lower P/E: 29.1× against 47.4×. Ingevity Corporation grew revenue faster over the last twelve months: 10.6% against 7.79%. Quaker Houghton has the higher net margin (4.94% vs 4.65%) and the lower return on invested capital (4.53% vs 9.33%). Across the 21 metrics below, Quaker Houghton leads on 11 and Ingevity Corporation on 10.

Valuation

Metric KWR NGVT Specialty Chemicals median
P/E 29.06 47.40 24.83
P/S 1.41 2.18 1.46
P/B 2.02 54.00 1.76
Price to free cash flow 37.46 16.35 19.84
EV/EBITDA 13.92 14.40 13.18
EV/Sales 1.78 2.95 1.84
Earnings yield 3.44% 2.11% 2.11%
Free cash flow yield 2.67% 6.12% 2.29%

Profitability

Metric KWR NGVT Specialty Chemicals median
Gross margin 36.06% 41.13% 29.23%
Operating margin 7.70% 11.83% 3.63%
Net margin 4.94% 4.65% 2.89%
Free cash flow margin 3.78% 13.35% 3.78%
Return on equity 7.17% 64.44% 3.62%
Return on assets 3.43% 3.16% 0.35%
Return on invested capital 4.53% 9.33% 2.75%

Growth

Metric KWR NGVT Specialty Chemicals median
Revenue growth (TTM) 7.79% 10.63% 4.51%
EPS growth (last fiscal year) (102.15%) 61.10% —
Revenue growth, 5-year CAGR 5.90% (0.81%) 6.30%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric KWR NGVT Specialty Chemicals median
Debt to equity 0.63 22.52 0.54
Current ratio 2.46 1.61 1.94
Net debt to EBITDA 4.53 4.40 2.03

Dividend

Metric KWR NGVT Specialty Chemicals median
Dividend yield 0.48% — 1.69%
Payout ratio 3.66 0.00 0.25

Size

Metric KWR NGVT Specialty Chemicals median
Market cap 2.74b 2.47b 2.43b

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