Innophos (IPHS) and Ingevity (NGVT) Head to Head Survey

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

Valuation & Earnings

This table compares Innophos and Ingevity’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Innophos $725.34 million 1.21 $47.97 million $2.17 20.65
Ingevity $908.30 million 3.43 $35.20 million $2.22 33.30

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

Profitability

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

Net Margins Return on Equity Return on Assets
Innophos 6.19% 13.90% 7.26%
Ingevity 9.86% 58.14% 12.09%

Insider & Institutional Ownership

94.5% of Innophos shares are held by institutional investors. Comparatively, 91.4% of Ingevity shares are held by institutional investors. 2.3% of Innophos shares are held by insiders. Comparatively, 0.1% of Ingevity shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Innophos pays an annual dividend of $1.92 per share and has a dividend yield of 4.3%. Ingevity does not pay a dividend. Innophos pays out 88.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Volatility & Risk

Innophos has a beta of 0.86, indicating that its stock price is 14% less volatile than the S&P 500. Comparatively, Ingevity has a beta of 1.78, indicating that its stock price is 78% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Innophos and Ingevity, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Innophos 0 1 1 0 2.50
Ingevity 0 0 6 0 3.00

Innophos currently has a consensus price target of $56.00, suggesting a potential upside of 24.97%. Ingevity has a consensus price target of $76.00, suggesting a potential upside of 2.80%. Given Innophos’ higher probable upside, analysts plainly believe Innophos is more favorable than Ingevity.

Summary

Ingevity beats Innophos on 11 of the 16 factors compared between the two stocks.

Innophos Company Profile

Innophos Holdings, Inc. is a producer of nutritional specialty ingredients with applications in food, beverage, dietary supplements, pharmaceutical, oral care and industrial end markets. The Company also provides bioactive mineral and nutritional ingredients. The Company’s segments include Specialty Phosphates US & Canada, Specialty Phosphates Mexico, and Granular Triple Super Phosphate (GTSP) & Other. The Company has four principal product lines: Specialty Ingredients; Food and Technical Grade Purified Phosphoric Acid (PPA); Technical Grade Sodium Tripolyphosphate (STPP), & Detergent Grade PPA, and GTSP & Other. The Company’s bioactive mineral ingredients are mineral-based ingredients for food, beverage and dietary supplement end markets that are manufactured to be readily digestible. The Company has its manufacturing facilities located throughout the United States, Canada, Mexico and China.

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.

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