Quaker Houghton (KWR) vs WD-40 Company (WDFC)

Quaker Houghton and WD-40 Company are both Specialty Chemicals companies. Quaker Houghton and WD-40 Company are of similar size ($2.7B and $2.7B). Quaker Houghton trades at the lower P/E: 29.1× against 30.1×. WD-40 Company grew revenue faster over the last twelve months: 10.2% against 7.79%. WD-40 Company has the higher net margin (13.2% vs 4.94%) and the higher return on invested capital (23.0% vs 4.53%). Both pay a dividend; WD-40 Company yields more (1.27% vs 0.48%). Across the 23 metrics below, WD-40 Company leads on 17 and Quaker Houghton on 6.

Valuation

Metric KWR WDFC Specialty Chemicals median
P/E 29.06 30.13 24.83
P/S 1.41 3.97 1.46
P/B 2.02 9.61 1.76
Price to free cash flow 37.46 33.51 19.84
EV/EBITDA 13.92 20.99 13.18
EV/Sales 1.78 4.03 1.84
Earnings yield 3.44% 3.32% 2.11%
Free cash flow yield 2.67% 2.98% 2.29%

Profitability

Metric KWR WDFC Specialty Chemicals median
Gross margin 36.06% 55.82% 29.23%
Operating margin 7.70% 17.48% 3.63%
Net margin 4.94% 13.19% 2.89%
Free cash flow margin 3.78% 11.88% 3.78%
Return on equity 7.17% 33.22% 3.62%
Return on assets 3.43% 18.62% 0.35%
Return on invested capital 4.53% 23.01% 2.75%

Growth

Metric KWR WDFC Specialty Chemicals median
Revenue growth (TTM) 7.79% 10.15% 4.51%
EPS growth (last fiscal year) (102.15%) 30.92% —
Revenue growth, 5-year CAGR 5.90% 8.70% 6.30%
Net income growth, 5-year CAGR 0.00% 8.47% 0.00%

Health

Metric KWR WDFC Specialty Chemicals median
Debt to equity 0.63 0.36 0.54
Current ratio 2.46 2.65 1.94
Net debt to EBITDA 4.53 0.25 2.03

Dividend

Metric KWR WDFC Specialty Chemicals median
Dividend yield 0.48% 1.27% 1.69%
Payout ratio 3.66 0.69 0.25

Size

Metric KWR WDFC Specialty Chemicals median
Market cap 2.74b 2.65b 2.43b

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