Contrasting of Stepan Company (SCL) and Ingevity Corporation (NYSE:NGVT)

Both Stepan Company (NYSE:SCL) and Ingevity Corporation (NYSE:NGVT) are Specialty Chemicals companies, competing one another. We will compare their profitability, institutional ownership, analyst recommendations, risk, dividends, earnings and valuation.

Valuation and Earnings

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Stepan Company 2.00B 0.98 95.70M 4.70 16.13
Ingevity Corporation 1.08B 3.67 168.60M 3.38 25.59

Table 1 highlights Stepan Company and Ingevity Corporation’s top-line revenue, earnings per share (EPS) and valuation. Ingevity Corporation seems to has lower revenue and earnings compared to Stepan Company. The company that is more affordable between the two has a lower P/E ratio. Stepan Company has been trading at a lower P/E ratio than Ingevity Corporation, which means that it is at the moment the more affordable of the two companies.

Profitability

Table 2 represents Stepan Company (NYSE:SCL) and Ingevity Corporation (NYSE:NGVT)’s return on equity, net margins and return on assets.

Net Margins Return on Equity Return on Assets
Stepan Company 4.79% 12.5% 6.5%
Ingevity Corporation 15.61% 55.1% 14.1%

Liquidity

The Current Ratio of Stepan Company is 2.5 while its Quick Ratio stands at 1.9. The Current Ratio of rival Ingevity Corporation is 2.3 and its Quick Ratio is has 1.3. Stepan Company is better equipped to clear short and long-term obligations than Ingevity Corporation.

Dividends

Stepan Company dividend pay is $0.89 per share with 1.03% dividend yield annually. Ingevity Corporation does not offer a dividend.

Analyst Ratings

The next table highlights the delivered recommendations and ratings for Stepan Company and Ingevity Corporation.

Sell Ratings Hold Ratings Buy Ratings Rating Score
Stepan Company 0 0 1 3.00
Ingevity Corporation 0 0 0 0.00

Stepan Company’s upside potential is 8.01% at a $94 consensus target price.

Insider & Institutional Ownership

Roughly 70.7% of Stepan Company shares are held by institutional investors while 96% of Ingevity Corporation are owned by institutional investors. Insiders held 2.3% of Stepan Company shares. Comparatively, Ingevity Corporation has 0.2% of it’s share held by insiders.

Performance

In this table we provide the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.

Performance (W) Performance (M) Performance (Q) Performance (HY) Performance (Y) Performance (YTD)
Stepan Company -6.12% -14.29% -13.22% -0.82% -3.39% -3.93%
Ingevity Corporation -11.73% -16.29% -12.63% 5.09% 13.07% 22.76%

For the past year Stepan Company has -3.93% weaker performance while Ingevity Corporation has 22.76% stronger performance.

Summary

On 9 of the 15 factors Ingevity Corporation beats Stepan Company.

Stepan Company, together with its subsidiaries, produces and sells specialty and intermediate chemicals to other manufacturers for use in various end products worldwide. It operates in three segments: Surfactants, Polymers, and Specialty Products. The Surfactants segment offers surfactants that are used as principal ingredients in consumer and industrial cleaning products, such as detergents for washing clothes, dishes, carpets, floors, and walls, as well as shampoos and body washes; and other applications, including fabric softeners, germicidal quaternary compounds, and lubricating ingredients, as well as emulsifiers for spreading agricultural products and industrial applications, such as latex systems, plastics, and composites. The Polymers segment provides polyurethane polyols that are used in the manufacture of rigid foam for thermal insulation in the construction industry, as well as a base raw material for coatings, adhesives, sealants and elastomers, and flexible foams; polyester resins, including liquid and powdered resins, which are used in CASE and polyurethane systems house applications; and phthalic anhydride that is used in unsaturated polyester resins, alkyd resins, and plasticizers for applications in construction materials and components of automotive, boating, and other consumer products. The Specialty Products segment offers flavors, emulsifiers, and solubilizers for use in the food, flavoring, nutritional supplement, and pharmaceutical applications. The company was founded in 1932 and is headquartered in Northfield, Illinois.

Ingevity Corporation manufactures and sells specialty chemicals and carbon materials in the United States and internationally. It operates through two segments, Performance Materials and Performance Chemicals. The Performance Materials segment engineers, manufactures, and sells wood-based chemically activated carbon products used in gasoline vapor emission control systems. This segment also produces other activated carbon products for the food, water, beverage, and chemical purification industries. The Performance Chemicals segment develops, manufactures, and sells a range of specialty chemicals derived from co-products of the kraft pulping process. This segmentÂ’s products are used in various applications, including asphalt paving, adhesives, agrochemical dispersants, printing inks, lubricants, oilfield exploration and production, and other diverse industries. The company was incorporated in 2015 and is headquartered in North Charleston, South Carolina.

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