Head-To-Head Contrast: Ingevity (NYSE:NGVT) & Element Solutions (NYSE:ESI)

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

Valuation and Earnings

This table compares Ingevity and Element Solutions”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ingevity	$1.17 billion	1.77	-$167.10 million	$1.70	35.98
Element Solutions	$2.55 billion	3.09	$190.80 million	$0.85	38.21

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

Volatility and Risk

Ingevity has a beta of 1.12, suggesting that its stock price is 12% more volatile than the S&P 500. Comparatively, Element Solutions has a beta of 1.29, suggesting that its stock price is 29% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and target prices for Ingevity and Element Solutions, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ingevity	0	3	2	0	2.40
Element Solutions	0	2	7	4	3.15

Ingevity presently has a consensus target price of $80.00, indicating a potential upside of 30.79%. Element Solutions has a consensus target price of $46.36, indicating a potential upside of 42.77%. Given Element Solutions’ stronger consensus rating and higher possible upside, analysts clearly believe Element Solutions is more favorable than Ingevity.

Insider & Institutional Ownership

91.6% of Ingevity shares are owned by institutional investors. Comparatively, 92.3% of Element Solutions shares are owned by institutional investors. 0.9% of Ingevity shares are owned by insiders. Comparatively, 6.2% of Element Solutions shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ingevity	5.28%	405.38%	11.41%
Element Solutions	5.87%	15.45%	7.67%

Summary

Element Solutions beats Ingevity on 12 of the 15 factors compared between the two stocks.

About Ingevity

Ingevity is a specialty chemicals and materials company headquartered in North Charleston, South Carolina. It develops and manufactures high-performance activated carbon and specialty chemical products for industrial and consumer applications. Its activated carbon products are used in vehicle fuel-vapor emission control and other applications. The company also makes specialty chemicals and polymer materials used in areas such as pavement technologies, coatings, adhesives and elastomers. Ingevity serves customers in markets around the world.

About Element Solutions

Element Solutions Inc. is a specialty chemicals company that develops and supplies materials used in electronics manufacturing and a range of industrial processes. Its products support the production of printed circuit boards, semiconductors and electronic assemblies, as well as metal plating, surface finishing and other applications. The company’s products help customers treat, protect and enhance surfaces and materials during manufacturing. Its portfolio includes process chemicals, coatings and related technologies sold under established brands, including MacDermid, Alpha and Enthone.