Head to Head Survey: Flexible Solutions International (NYSE:FSI) and International Flavors & Fragrances (NYSE:IFF)

Flexible Solutions International (NYSE:FSI) and International Flavors & Fragrances (NYSE:IFF) are both materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, dividends, institutional ownership, risk, profitability and valuation.

Profitability

This table compares Flexible Solutions International and International Flavors & Fragrances’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Flexible Solutions International	10.80%	10.61%	7.32%
International Flavors & Fragrances	2.78%	7.11%	3.96%

Valuation & Earnings

This table compares Flexible Solutions International and International Flavors & Fragrances”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Flexible Solutions International	$35.58 million	2.03	$2.78 million	($0.24)	-23.54
International Flavors & Fragrances	$10.78 billion	1.98	-$361.00 million	$1.09	76.76

Flexible Solutions International has higher earnings, but lower revenue than International Flavors & Fragrances. Flexible Solutions International is trading at a lower price-to-earnings ratio than International Flavors & Fragrances, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

54.3% of Flexible Solutions International shares are held by institutional investors. Comparatively, 96.0% of International Flavors & Fragrances shares are held by institutional investors. 35.8% of Flexible Solutions International shares are held by company insiders. Comparatively, 1.1% of International Flavors & Fragrances shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Risk and Volatility

Flexible Solutions International has a beta of 1.7, indicating that its share price is 70% more volatile than the S&P 500. Comparatively, International Flavors & Fragrances has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500.

Dividends

Flexible Solutions International pays an annual dividend of $0.15 per share and has a dividend yield of 2.7%. International Flavors & Fragrances pays an annual dividend of $1.60 per share and has a dividend yield of 1.9%. Flexible Solutions International pays out -62.5% of its earnings in the form of a dividend. International Flavors & Fragrances pays out 146.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Flexible Solutions International is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Flexible Solutions International and International Flavors & Fragrances, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Flexible Solutions International	0	1	0	1	3.00
International Flavors & Fragrances	1	6	12	0	2.58

International Flavors & Fragrances has a consensus target price of $91.40, indicating a potential upside of 9.24%. Given International Flavors & Fragrances’ higher probable upside, analysts plainly believe International Flavors & Fragrances is more favorable than Flexible Solutions International.

Summary

Flexible Solutions International beats International Flavors & Fragrances on 11 of the 17 factors compared between the two stocks.

About Flexible Solutions International

Flexible Solutions International, Inc., together with its subsidiaries, develops, manufactures, and markets specialty chemicals that slow the evaporation of water in Canada, the United States, and internationally. The company operates in two segments, Energy and Water Conservation Products, and Biodegradable Polymers. The company offers thermal polyaspartates (TPAs) for oilfields to reduce scale and corrosion in various water systems; and for the agricultural industry to reduce fertilizer crystallization before, during, and after application, as well as to prevent crystal formation between fertilizer and minerals present in the soil. It also provides TPAs for irrigation to prevent early plugging of drip irrigation ports, reduce maintenance costs, and lengthen the life of equipment; TPAs for cleaning products to prevents the re-deposition of dirt onto the surfaces; and TPAs as additives for household laundry detergents, consumer care products, and pesticides. In addition, the company offers nitrogen conservation products for agriculture that slow down nitrogen loss from fields. Further, it provides HEATSAVR, a chemical product for use in swimming pools and spas that forms a thin and transparent layer on the water's surface; and WATERSAVR to reduce water evaporation in reservoirs, potable water storage tanks, livestock watering ponds, aqueducts, canals, and irrigation ditches, as well as for lawn and turf care, and potted and bedding plants. The company was incorporated in 1991 and is headquartered in Taber, Canada.

About International Flavors & Fragrances

International Flavors & Fragrances, Inc. engages in the manufacture and supply of flavors and fragrances used in the food, beverage, personal care, and household products industries. It operates through the following segments: Nourish, Health & Biosciences, Scent and Pharma Solutions. The Nourish segment consists of legacy Taste segment combined with N&B’s Food & Beverage division and the food protection business of N&B’s Health & Biosciences division. The Health & Biosciences business consists of a biotechnology-driven portfolio of enzymes, food cultures, probiotics and specialty ingredients for food, home and personal care, and health and wellness applications. The Scent business creates fragrance compounds, fragrance ingredients and cosmetic ingredients that are integral elements in the world’s finest perfumes and best-known household and personal care products. The Pharma Solutions business produces a vast portfolio including cellulosics and seaweed-based pharma excipients, used to improve the functionality and delivery of active pharmaceutical ingredients, including controlled or modified drug release formulations, and enabling. The company was founded in 1833 and is headquartered in New York, NY.