Ingevity (NYSE: NGVT) and Ashland Global (NYSE:ASH) are both mid-cap basic materials companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, valuation, risk, earnings, dividends, analyst recommendations and institutional ownership.
Ashland Global pays an annual dividend of $1.00 per share and has a dividend yield of 1.3%. Ingevity does not pay a dividend. Ashland Global pays out 41.0% of its earnings in the form of a dividend.
This table compares Ingevity and Ashland Global’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional and Insider Ownership
90.8% of Ingevity shares are held by institutional investors. Comparatively, 94.7% of Ashland Global shares are held by institutional investors. 0.2% of Ingevity shares are held by company insiders. Comparatively, 1.1% of Ashland Global shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Ingevity and Ashland Global’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Ingevity||$972.40 million||3.51||$126.50 million||$2.58||31.43|
|Ashland Global||$3.26 billion||1.50||$1.00 million||$2.44||32.18|
Ingevity has higher earnings, but lower revenue than Ashland Global. Ingevity is trading at a lower price-to-earnings ratio than Ashland Global, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and target prices for Ingevity and Ashland Global, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Ingevity currently has a consensus target price of $86.38, indicating a potential upside of 6.52%. Ashland Global has a consensus target price of $83.44, indicating a potential upside of 6.29%. Given Ingevity’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Ingevity is more favorable than Ashland Global.
Risk and Volatility
Ingevity has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500. Comparatively, Ashland Global has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500.
Ingevity beats Ashland Global on 9 of the 16 factors compared between the two stocks.
Ingevity Company Profile
Ingevity Corporation manufactures and sells specialty chemicals and carbon materials in the United States and internationally. The company operates through two segments, Performance Materials and Performance Chemicals. The Performance Materials segment engineers, manufactures, and sells wood-based chemically activated carbon products primarily for gasoline vapor emission control systems. This segment also produces other activated carbon products for use in various applications, including food, water, beverage, and chemical purification. The Performance Chemicals segment develops, manufactures, and sells a range of specialty chemicals derived from co-products of the Kraft pulping process. This segment's products are used in various applications comprising asphalt paving, oilfield exploration and production, printing inks, adhesives, agrochemical dispersants, lubricants, and other diverse industries. Ingevity Corporation was incorporated in 2015 and is headquartered in North Charleston, South Carolina.
Ashland Global Company Profile
Ashland Global Holdings Inc. provides specialty chemical solutions worldwide. Its Specialty Ingredients segment provides products, technologies, and resources for solving formulation and product-performance challenges. It offers solutions using natural, synthetic, and semisynthetic polymers derived from plant and seed extract, cellulose ethers, vinyl pyrrolidones, and acrylic polymers, as well as polyester and polyurethane-based adhesives. This segment offers its solutions for pharmaceutical companies; makers of personal care products, food, and beverages; manufacturers of paint, coatings, and construction materials; makers of nutraceuticals and supplements; packaging and converting markets; and oilfield service companies. The company's Composites segment manufactures and sells a range of unsaturated polyester and vinyl ester resins, gelcoats, and low-profile additives for the reinforced plastics industry; and molten maleic anhydride for the manufacture of various products, such as unsaturated polyester resins, copolymers, lubricating oil additives, alkenyl succinic anhydrides, malic acid, fumaric acid, and derivative chemicals. This segment serves manufacturers of residential and commercial building products; industrial product specifiers and manufacturers; wind blade and pipe manufacturers; automotive and truck OEM suppliers; boat builders; chemical producers; and electronics makers. Its Intermediates and Solvents segment produces 1,4 butanediol and related derivatives, including tetrahydrofuran and n-methylpyrrolidone that are used as chemical intermediates in the production of engineering polymers and polyurethanes, as well as specialty process solvents used in electronics, pharmaceuticals, water filtration membranes, and others. The company was formerly known as Ashland Inc. and changed its name to Ashland Global Holdings Inc. in September 2016. Ashland Global Holdings Inc. was founded in 1924 and is headquartered in Covington, Kentucky.
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