Quaker Houghton (KWR) vs Stepan Company (SCL)

Quaker Houghton and Stepan Company are both Specialty Chemicals companies. Quaker Houghton is the larger, with a market value of $2.6B against $1.5B — 1.7× the size. Quaker Houghton trades at the lower P/E: 27.2× against 361×. Stepan Company grew revenue faster over the last twelve months: 10.0% against 8.68%. Quaker Houghton has the higher net margin (4.80% vs 0.17%) and the higher return on invested capital (4.50% vs 0.96%). Both pay a dividend; Stepan Company yields more (2.33% vs 1.35%). Across the 23 metrics below, Quaker Houghton leads on 13 and Stepan Company on 10.

Valuation

Metric KWR SCL Specialty Chemicals median
P/E 27.16 360.74 24.46
P/S 1.29 0.61 1.64
P/B 1.85 1.28 1.88
Price to free cash flow 66.49 23.35 19.15
EV/EBITDA 13.09 14.62 12.87
EV/Sales 1.65 0.86 1.88
Earnings yield 3.68% 0.28% 2.42%
Free cash flow yield 1.50% 4.28% 2.25%

Profitability

Metric KWR SCL Specialty Chemicals median
Gross margin 35.78% 11.99% 27.84%
Operating margin 7.61% 0.95% 5.64%
Net margin 4.80% 0.17% 4.19%
Free cash flow margin 1.95% 0.00% 3.49%
Return on equity 6.98% 0.00% 2.34%
Return on assets 3.39% 0.18% 0.45%
Return on invested capital 4.50% 0.96% 3.21%

Growth

Metric KWR SCL Specialty Chemicals median
Revenue growth (TTM) 8.68% 10.02% 6.39%
EPS growth (last fiscal year) (102.15%) (6.82%) (9.77%)
Revenue growth, 5-year CAGR 5.90% 4.52% 6.33%
Net income growth, 5-year CAGR 0.00% (18.04%) 0.00%

Health

Metric KWR SCL Specialty Chemicals median
Debt to equity 0.63 0.28 0.59
Current ratio 2.47 1.32 2.28
Net debt to EBITDA 4.53 2.41 2.03

Dividend

Metric KWR SCL Specialty Chemicals median
Dividend yield 1.35% 2.33% 1.80%
Payout ratio 0.37 8.53 0.40

Size

Metric KWR SCL Specialty Chemicals median
Market cap 2.62b 1.54b 2.08b

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack