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

Risk & Volatility

Ingevity has a beta of 1.78, suggesting that its stock price is 78% more volatile than the S&P 500. Comparatively, Koppers has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500.

Insider and Institutional Ownership

91.1% of Ingevity shares are held by institutional investors. Comparatively, 89.3% of Koppers shares are held by institutional investors. 0.1% of Ingevity shares are held by company insiders. Comparatively, 3.9% of Koppers shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
Ingevity 9.86% 58.14% 12.09%
Koppers 3.54% 119.06% 7.05%

Valuation and Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ingevity $908.30 million 3.27 $35.20 million $2.22 31.74
Koppers $1.42 billion 0.75 $29.30 million $2.31 22.03

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

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ingevity 0 0 5 0 3.00
Koppers 0 1 4 0 2.80

Ingevity presently has a consensus target price of $79.20, indicating a potential upside of 12.39%. Koppers has a consensus target price of $49.60, indicating a potential downside of 2.55%. Given Ingevity’s stronger consensus rating and higher possible upside, analysts clearly believe Ingevity is more favorable than Koppers.

Summary

Ingevity beats Koppers on 10 of the 14 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.

Koppers Company Profile

Koppers Holdings Inc. is a global integrated provider of treated wood products, wood treatment chemicals and carbon compounds. The Company operates through three segments: Railroad and Utility Products and Services (RUPS), Carbon Materials and Chemicals (CMC) and Performance Chemicals (PC). The RUPS business sells treated and untreated wood products, rail joint bars and services primarily to the railroad markets. The primary products supplied by PC business are copper-based wood preservatives, including micronized copper quaternary and micronized copper azole (MicroPro), micronized pigments (MicroShades) and chromated copper arsenate. Through CMC business, the Company processes coal tar into a range of products, including carbon pitch, creosote and carbon black feedstock. Its products and services are used in a range of markets, including the railroad, specialty chemical, utility, residential lumber, agriculture, aluminum, steel, rubber and construction industries.

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