Solstice Advanced Materials Inc. (SOLS) vs Sasol Ltd. (SSL)

Solstice Advanced Materials Inc. and Sasol Ltd. are both Specialty Chemicals companies. Sasol Ltd. is the larger, with a market value of $9.6B against $8.8B — 1.1× the size. Sasol Ltd. trades at the lower P/E: 3.2× against 27.6×. Sasol Ltd. grew revenue faster over the last twelve months: 26.6% against 9.62%. Sasol Ltd. has the higher net margin (8.89% vs 7.79%) and the lower return on invested capital (0.00% vs 13.1%). Only Solstice Advanced Materials Inc. pays a dividend (0.39%). Across the 18 metrics below, Sasol Ltd. leads on 11 and Solstice Advanced Materials Inc. on 7.

Valuation

Metric SOLS SSL Specialty Chemicals median
P/E 27.63 3.19 26.45
P/S 2.20 n/m 1.64
P/B 5.83 n/m 1.84
Price to free cash flow 21.41 n/m 21.25
EV/EBITDA 12.52 0.37 12.93
EV/Sales 2.52 0.11 1.90
Earnings yield 3.62% 31.39% 2.47%
Free cash flow yield 4.67% 0.00% 2.20%

Profitability

Metric SOLS SSL Specialty Chemicals median
Gross margin 30.90% 33.45% 27.84%
Operating margin 14.69% 0.00% 5.64%
Net margin 7.79% 8.89% 4.26%
Free cash flow margin 10.28% 0.00% 4.75%
Return on equity 13.67% 0.00% 3.73%
Return on assets 5.74% 0.00% 1.16%
Return on invested capital 13.13% 0.00% 3.21%

Growth

Metric SOLS SSL Specialty Chemicals median
Revenue growth (TTM) 9.62% 26.64% 7.03%
EPS growth (last fiscal year) (60.91%) 91.38% (8.48%)
Revenue growth, 5-year CAGR — 4.12% 6.27%
Net income growth, 5-year CAGR — 4.08% 0.00%

Health

Metric SOLS SSL Specialty Chemicals median
Debt to equity 1.31 0.65 0.59
Current ratio 1.38 1.79 2.16
Net debt to EBITDA 1.85 1.56 2.03

Dividend

Metric SOLS SSL Specialty Chemicals median
Dividend yield 0.39% 0.00% 1.84%
Payout ratio 0.11 — 0.40

Size

Metric SOLS SSL Specialty Chemicals median
Market cap 8.75b 9.63b 1.95b

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