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

Institutional and Insider Ownership

91.4% of Ingevity shares are owned by institutional investors. Comparatively, 74.3% of Chemours shares are owned by institutional investors. 0.1% of Ingevity shares are owned by insiders. Comparatively, 1.1% of Chemours shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Dividends

Chemours pays an annual dividend of $0.12 per share and has a dividend yield of 0.2%. Ingevity does not pay a dividend. Chemours pays out 8.3% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares Ingevity and Chemours’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ingevity $908.30 million 3.37 $35.20 million $2.22 32.73
Chemours $5.40 billion 1.69 $7.00 million $1.45 34.08

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

Analyst Recommendations

This is a summary of current recommendations and price targets for Ingevity and Chemours, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ingevity 0 0 5 0 3.00
Chemours 0 1 6 0 2.86

Ingevity currently has a consensus price target of $79.20, suggesting a potential upside of 9.00%. Chemours has a consensus price target of $57.86, suggesting a potential upside of 17.07%. Given Chemours’ higher possible upside, analysts clearly believe Chemours is more favorable than Ingevity.

Profitability

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

Net Margins Return on Equity Return on Assets
Ingevity 9.86% 58.14% 12.09%
Chemours 4.86% 116.80% 8.10%

Summary

Ingevity beats Chemours on 9 of the 15 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.

Chemours Company Profile

The Chemours Company is a provider of performance chemicals. The Company operates through three segments: Titanium Technologies, Fluoroproducts and Chemical Solutions. The Titanium Technologies segment is a producer of titanium dioxide (TiO2). The Fluoroproducts segment is a provider of fluoroproducts, including refrigerants and industrial fluoropolymer resins. The Chemical Solutions segment is a North American provider of industrial chemicals used in gold production, oil and gas, water treatment and other industries. It delivers customized solutions with a range of industrial and specialty chemical products for markets, including plastics and coatings, refrigeration and air conditioning, industrial, mining and oil refining. Its products include titanium dioxide, refrigerants, industrial fluoropolymer resins and a portfolio of mining and industrial chemicals, including sodium cyanide. As of December 31, 2016, the Company operates 26 production facilities located in 10 countries.

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