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

Analyst Recommendations

This is a breakdown of current ratings for Ingevity and Quaker Chemical, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ingevity 0 0 6 0 3.00
Quaker Chemical 0 3 0 0 2.00

Ingevity currently has a consensus target price of $76.00, indicating a potential downside of 1.62%. Quaker Chemical has a consensus target price of $161.00, indicating a potential upside of 2.79%. Given Quaker Chemical’s higher possible upside, analysts clearly believe Quaker Chemical is more favorable than Ingevity.

Risk and Volatility

Ingevity has a beta of 1.78, indicating that its stock price is 78% more volatile than the S&P 500. Comparatively, Quaker Chemical has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500.

Earnings and Valuation

This table compares Ingevity and Quaker Chemical’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ingevity $908.30 million 3.58 $35.20 million $2.22 34.80
Quaker Chemical $746.66 million 2.79 $61.40 million $3.55 44.12

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

Dividends

Quaker Chemical pays an annual dividend of $1.42 per share and has a dividend yield of 0.9%. Ingevity does not pay a dividend. Quaker Chemical pays out 40.0% of its earnings in the form of a dividend. Quaker Chemical has raised its dividend for 7 consecutive years.

Profitability

This table compares Ingevity and Quaker 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%
Quaker Chemical 5.93% 15.43% 9.20%

Institutional and Insider Ownership

91.4% of Ingevity shares are held by institutional investors. Comparatively, 86.7% of Quaker Chemical shares are held by institutional investors. 0.1% of Ingevity shares are held by insiders. Comparatively, 3.6% of Quaker Chemical shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Ingevity beats Quaker Chemical on 11 of the 17 factors compared between the two stocks.

About Ingevity

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 Quaker Chemical

Quaker Chemical Corporation is a provider of process fluids, chemical specialties, and technical expertise to a range of industries, including steel, aluminum, mining, aerospace, tube and pipe, cans and others. The Company’s segments include North America, Europe, Middle East and Africa (EMEA), Asia/Pacific and South America. It develops, produces, and markets a range of formulated chemical specialty products and offers chemical management services. Its products and services include rolling lubricants (used by manufacturers of steel in the hot and cold rolling of steel and by manufacturers of aluminum in the hot rolling of aluminum); machining and grinding compounds (used by metalworking customers in cutting, shaping, and grinding metal parts, which require special treatment to enable them to tolerate the manufacturing process, achieve closer tolerance, and improve tool life), and hydraulic fluids (used by steel, metalworking, and other customers to operate hydraulic equipment).

Receive News & Ratings for Ingevity Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Ingevity Corporation and related companies with Analyst Ratings Network's FREE daily email newsletter.