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

Earnings and Valuation

This table compares Innophos Holdings and Ingevity Corp’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Innophos Holdings $698.91 million 1.40 $116.47 million $2.28 22.15
Ingevity Corp $942.10 million 2.89 $216.90 million N/A N/A

Ingevity Corp has higher revenue and earnings than Innophos Holdings.

Analyst Recommendations

This is a summary of recent ratings and price targets for Innophos Holdings and Ingevity Corp, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Innophos Holdings 0 0 1 0 3.00
Ingevity Corp 0 0 5 0 3.00

Innophos Holdings currently has a consensus price target of $56.00, indicating a potential upside of 10.89%. Ingevity Corp has a consensus price target of $68.20, indicating a potential upside of 5.54%. Given Innophos Holdings’ higher probable upside, equities research analysts plainly believe Innophos Holdings is more favorable than Ingevity Corp.

Profitability

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

Net Margins Return on Equity Return on Assets
Innophos Holdings 6.46% 13.79% 7.51%
Ingevity Corp 13.75% 76.78% 16.55%

Dividends

Innophos Holdings pays an annual dividend of $1.92 per share and has a dividend yield of 3.8%. Ingevity Corp does not pay a dividend. Innophos Holdings pays out 84.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Institutional & Insider Ownership

94.2% of Innophos Holdings shares are owned by institutional investors. 2.3% of Innophos Holdings shares are owned 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.

Summary

Ingevity Corp beats Innophos Holdings on 9 of the 13 factors compared between the two stocks.

About Innophos Holdings

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.

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.

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