Oil-Dri Corporation Of America (ODC) vs Stepan Company (SCL)

Oil-Dri Corporation Of America and Stepan Company are both Specialty Chemicals companies. Stepan Company is the larger, with a market value of $1.5B against $1.2B — 1.2× the size. Stepan Company has negative trailing earnings, so its P/E is not meaningful; Oil-Dri Corporation Of America trades at 21.9×. Stepan Company grew revenue faster over the last twelve months: 7.63% against 3.31%. Oil-Dri Corporation Of America has the higher net margin (11.3% vs −0.11%) and the higher return on invested capital (15.6% vs 0.71%). Both pay a dividend; Oil-Dri Corporation Of America yields more (1.73% vs 1.65%). Across the 22 metrics below, Oil-Dri Corporation Of America leads on 15 and Stepan Company on 7.

Valuation

Metric ODC SCL Specialty Chemicals median
P/E 21.88 n/m 24.83
P/S 2.51 0.61 1.46
P/B 4.32 1.22 1.76
Price to free cash flow 24.89 22.24 19.84
EV/EBITDA 13.69 13.48 13.18
EV/Sales 2.47 0.83 1.84
Earnings yield 4.57% (0.19%) 2.11%
Free cash flow yield 4.02% 4.50% 2.29%

Profitability

Metric ODC SCL Specialty Chemicals median
Gross margin 27.84% 11.81% 29.23%
Operating margin 13.35% 0.82% 3.63%
Net margin 11.34% (0.11%) 2.89%
Free cash flow margin 10.10% 2.60% 3.78%
Return on equity 20.87% (0.22%) 3.62%
Return on assets 14.27% (0.11%) 0.35%
Return on invested capital 15.59% 0.71% 2.75%

Growth

Metric ODC SCL Specialty Chemicals median
Revenue growth (TTM) 3.31% 7.63% 4.51%
EPS growth (last fiscal year) 36.28% (6.82%) —
Revenue growth, 5-year CAGR 11.38% 4.52% 6.30%
Net income growth, 5-year CAGR 23.36% (18.04%) 0.00%

Health

Metric ODC SCL Specialty Chemicals median
Debt to equity 0.14 0.53 0.54
Current ratio 3.28 1.15 1.94
Net debt to EBITDA (0.12) 2.41 2.03

Dividend

Metric ODC SCL Specialty Chemicals median
Dividend yield 1.73% 1.65% 1.69%
Payout ratio 0.33 0.42 0.25

Size

Metric ODC SCL Specialty Chemicals median
Market cap 1.24b 1.45b 2.43b

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