Comparing Givaudan (OTCMKTS:GVDNY) & Quaker Houghton (NYSE:KWR)

Quaker Houghton (NYSE:KWR) and Givaudan (OTCMKTS:GVDNY) are both basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, valuation, analyst recommendations, dividends, risk, institutional ownership and earnings.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Quaker Houghton and Givaudan, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Quaker Houghton	1	2	3	0	2.33
Givaudan	1	1	2	1	2.60

Quaker Houghton currently has a consensus target price of $175.67, indicating a potential upside of 26.02%. Given Quaker Houghton’s higher possible upside, research analysts plainly believe Quaker Houghton is more favorable than Givaudan.

Volatility & Risk

Quaker Houghton has a beta of 1.34, meaning that its stock price is 34% more volatile than the S&P 500. Comparatively, Givaudan has a beta of 0.78, meaning that its stock price is 22% less volatile than the S&P 500.

Insider & Institutional Ownership

77.5% of Quaker Houghton shares are owned by institutional investors. Comparatively, 0.0% of Givaudan shares are owned by institutional investors. 1.1% of Quaker Houghton shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

Quaker Houghton pays an annual dividend of $2.03 per share and has a dividend yield of 1.5%. Givaudan pays an annual dividend of $0.96 per share and has a dividend yield of 1.3%. Quaker Houghton pays out -1,691.7% of its earnings in the form of a dividend. Quaker Houghton has increased its dividend for 17 consecutive years. Quaker Houghton is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation & Earnings

This table compares Quaker Houghton and Givaudan”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Quaker Houghton	$1.89 billion	1.28	-$2.49 million	($0.12)	-1,161.67
Givaudan	$9.02 billion	N/A	$1.29 billion	N/A	N/A

Givaudan has higher revenue and earnings than Quaker Houghton.

Profitability

This table compares Quaker Houghton and Givaudan’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Quaker Houghton	-0.13%	8.99%	4.42%
Givaudan	N/A	N/A	N/A

Summary

Quaker Houghton beats Givaudan on 10 of the 15 factors compared between the two stocks.

About Quaker Houghton

Quaker Chemical Corporation, together with its subsidiaries, develops, produces, and markets various formulated specialty chemical products for a range of heavy industrial and manufacturing applications in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It offers metal removal fluids, cleaning fluids, corrosion inhibitors, metal drawing and forming fluids, die-cast mold releases, heat treatment and quenchants, metal forging fluids, hydraulic fluids, specialty greases, offshore sub-sea energy control fluids, rolling lubricants, rod and wire drawing fluids, and surface treatment chemicals. The company also provides chemical management services. It serves steel, aluminum, automotive, aerospace, offshore, container, mining, and metalworking companies. The company was founded in 1918 and is headquartered in Conshohocken, Pennsylvania.

About Givaudan

Givaudan SA manufactures, supplies, and sells fragrance, beauty, taste, and wellbeing products to the consumer goods industry. The company operates through divisions, Fragrance & Beauty, and Taste & Wellbeing. The Fragrance & Beauty division offers fine fragrances; consumer products, such as personal, home, fabric, and oral care; fragrance ingredients; and active beauty products. The Taste & Wellbeing division provides beverages, such as fizzy drinks, bottled waters, ready-to-drink juices, alcoholic beverages, and others; dairy and cheese products, including dairy drinks, yoghurt, ice cream, chilled desserts, cream cheese, and spreads; snacks; givaudan flavour ingredients; savory, and supplements and nutraceutical products; and biscuits, crackers, and cereals, as well as confectionery products, such as chewing gums, chocolates, and sweets. It operates in Switzerland, Europe, Africa, the Middle East, North America, Latin America, and the Asia Pacific. Givaudan SA was founded in 1796 and is headquartered in Vernier, Switzerland.