Ingevity Corp (NASDAQ: NGVT) and UFP Technologies (NASDAQ:UFPT) are both basic materials companies, but which is the better business? We will contrast the two businesses based on the strength of their earnings, risk, dividends, institutional ownership, profitability, valuation and analyst recommendations.

Profitability

This table compares Ingevity Corp and UFP Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ingevity Corp 13.75% 76.78% 16.55%
UFP Technologies 6.03% 6.86% 6.04%

Institutional and Insider Ownership

68.2% of UFP Technologies shares are held by institutional investors. 13.3% of UFP Technologies shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Ingevity Corp and UFP Technologies’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Ingevity Corp $942.10 million 2.78 $216.90 million N/A N/A
UFP Technologies $148.67 million 1.32 $17.67 million $1.23 21.95

Ingevity Corp has higher revenue and earnings than UFP Technologies.

Analyst Ratings

This is a summary of recent ratings and price targets for Ingevity Corp and UFP Technologies, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ingevity Corp 0 1 3 0 2.75
UFP Technologies 0 0 0 0 N/A

Ingevity Corp currently has a consensus price target of $66.00, indicating a potential upside of 6.33%. Given Ingevity Corp’s higher probable upside, equities research analysts plainly believe Ingevity Corp is more favorable than UFP Technologies.

Summary

Ingevity Corp beats UFP Technologies on 9 of the 11 factors compared between the two stocks.

About Ingevity Corp

Ingevity Corporation is a manufacturer of specialty chemicals and high performance carbon materials. The Company is also a manufacturer of activated carbon used in gasoline vapor emission control systems in cars, trucks, motorcycles and boats. The Company operates through two segments: Performance Materials and Performance Chemicals. The Performance Materials segment primarily produces automotive carbon products used in gasoline vapor emission control systems in cars, trucks, motorcycles and boats. The Performance Chemicals segment develops, manufactures and sells a range of specialty chemicals primarily derived from co-products of the Kraft pulping process. Its products are used in a range of applications, including asphalt paving, oil exploration and production, agrochemicals, adhesives, lubricants, publication inks and automotive components that reduce gasoline vapor emissions.

About UFP Technologies

UFP Technologies, Inc. is a designer and custom converter of foams, plastics, composites and natural fiber materials. The Company is engaged in providing solutions to customers primarily within the medical, automotive, consumer, electronics, industrial, and aerospace and defense markets. It converts these materials using laminating, molding, and fabricating manufacturing technologies. The Company’s raw materials consist of polyethylene and polyurethane foams, sheet plastics, pulp fiber, cross-linked polyethylene and reticulated polyurethane foams, fabric and foam laminates, and natural fiber materials. The Company converts these materials to provide customers various solutions, including automotive interior trim, medical device components, disposable wound care components, military uniform and gear components, athletic padding, air filtration, high-temperature insulation, abrasive nail files and other beauty aids, and cushion packaging for their products.

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