Ingevity (NYSE: NGVT) and Eastman Chemical (NYSE:EMN) are both mid-cap basic materials companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, institutional ownership, valuation, risk and dividends.

Valuation and Earnings

This table compares Ingevity and Eastman Chemical’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ingevity $908.30 million 3.36 $35.20 million $2.22 32.62
Eastman Chemical $9.01 billion 1.49 $854.00 million $6.89 13.51

Eastman Chemical has higher revenue and earnings than Ingevity. Eastman Chemical is trading at a lower price-to-earnings ratio than Ingevity, indicating that it is currently the more affordable of the two stocks.

Dividends

Eastman Chemical pays an annual dividend of $2.04 per share and has a dividend yield of 2.2%. Ingevity does not pay a dividend. Eastman Chemical pays out 29.6% of its earnings in the form of a dividend. Ingevity has increased its dividend for 5 consecutive years.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Ingevity and Eastman Chemical, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ingevity 0 0 6 0 3.00
Eastman Chemical 0 8 7 0 2.47

Ingevity currently has a consensus price target of $76.00, suggesting a potential upside of 4.94%. Eastman Chemical has a consensus price target of $96.69, suggesting a potential upside of 3.88%. Given Ingevity’s stronger consensus rating and higher probable upside, research analysts plainly believe Ingevity is more favorable than Eastman Chemical.

Risk and Volatility

Ingevity has a beta of 1.78, indicating that its share price is 78% more volatile than the S&P 500. Comparatively, Eastman Chemical has a beta of 1.3, indicating that its share price is 30% more volatile than the S&P 500.

Insider and Institutional Ownership

91.4% of Ingevity shares are held by institutional investors. Comparatively, 82.7% of Eastman Chemical shares are held by institutional investors. 0.1% of Ingevity shares are held by company insiders. Comparatively, 1.1% of Eastman Chemical shares are held 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.

Profitability

This table compares Ingevity and Eastman Chemical’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ingevity 9.86% 58.14% 12.09%
Eastman Chemical 10.89% 22.77% 6.96%

Summary

Ingevity beats Eastman Chemical on 10 of the 17 factors compared between the two stocks.

Ingevity Company Profile

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.

Eastman Chemical Company Profile

Eastman Chemical Company (Eastman) is an advanced materials and specialty additives company. The Company’s segments include Additives & Functional Products (AFP), Advanced Materials (AM), Chemical Intermediates (CI), and Fibers. In the AFP segment, it manufactures chemicals for products in the coatings, tires, consumables, building and construction, industrial applications, including solar energy markets, animal nutrition, care chemicals, crop protection, and energy markets. In the AM segment, it produces and markets its polymers, films, and plastics with differentiated performance properties for end uses in transportation, consumables, building and construction, durable goods, and health and wellness products. The CI segment leverages large scale and vertical integration from the cellulose and acetyl, olefins, and alkylamines streams to support its specialty operating segments. Its product lines in Fibers segment include Acetate Tow, Acetate Yarn and Acetyl Chemical Products.

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