Ingevity Corporation (NGVT) vs Stepan Company (SCL)

Ingevity Corporation and Stepan Company are both Specialty Chemicals companies. Ingevity Corporation is the larger, with a market value of $2.5B against $1.5B — 1.7× the size. Stepan Company has negative trailing earnings, so its P/E is not meaningful; Ingevity Corporation trades at 47.4×. Ingevity Corporation grew revenue faster over the last twelve months: 10.6% against 7.63%. Ingevity Corporation has the higher net margin (4.65% vs −0.11%) and the higher return on invested capital (9.33% vs 0.71%). Across the 21 metrics below, Ingevity Corporation leads on 14 and Stepan Company on 7.

Valuation

Metric NGVT SCL Specialty Chemicals median
P/E 47.40 n/m 24.83
P/S 2.18 0.61 1.46
P/B 54.00 1.22 1.76
Price to free cash flow 16.35 22.24 19.84
EV/EBITDA 14.40 13.48 13.18
EV/Sales 2.95 0.83 1.84
Earnings yield 2.11% (0.19%) 2.11%
Free cash flow yield 6.12% 4.50% 2.29%

Profitability

Metric NGVT SCL Specialty Chemicals median
Gross margin 41.13% 11.81% 29.23%
Operating margin 11.83% 0.82% 3.63%
Net margin 4.65% (0.11%) 2.89%
Free cash flow margin 13.35% 2.60% 3.78%
Return on equity 64.44% (0.22%) 3.62%
Return on assets 3.16% (0.11%) 0.35%
Return on invested capital 9.33% 0.71% 2.75%

Growth

Metric NGVT SCL Specialty Chemicals median
Revenue growth (TTM) 10.63% 7.63% 4.51%
EPS growth (last fiscal year) 61.10% (6.82%) —
Revenue growth, 5-year CAGR (0.81%) 4.52% 6.30%
Net income growth, 5-year CAGR 0.00% (18.04%) 0.00%

Health

Metric NGVT SCL Specialty Chemicals median
Debt to equity 22.52 0.53 0.54
Current ratio 1.61 1.15 1.94
Net debt to EBITDA 4.40 2.41 2.03

Dividend

Metric NGVT SCL Specialty Chemicals median
Dividend yield — 1.65% 1.69%
Payout ratio 0.00 0.42 0.25

Size

Metric NGVT SCL Specialty Chemicals median
Market cap 2.47b 1.45b 2.43b

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