Ingevity (NYSE:NGVT) & SHOWA DENKO KK/ADR (NYSE:SHWDY) Head to Head Analysis

Ingevity (NYSE:NGVT) and SHOWA DENKO KK/ADR (OTCMKTS:SHWDY) are both basic materials companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, valuation, profitability, analyst recommendations, dividends, earnings and institutional ownership.

Institutional & Insider Ownership

91.6% of Ingevity shares are owned by institutional investors. 0.6% of Ingevity shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Ingevity and SHOWA DENKO KK/ADR’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ingevity $1.13 billion 3.42 $169.10 million $4.13 22.45
SHOWA DENKO KK/ADR $8.99 billion 4.77 $1.00 billion $8.92 3.21

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

Profitability

This table compares Ingevity and SHOWA DENKO KK/ADR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ingevity 14.31% 53.69% 10.79%
SHOWA DENKO KK/ADR N/A N/A N/A

Dividends

SHOWA DENKO KK/ADR pays an annual dividend of $0.68 per share and has a dividend yield of 2.4%. Ingevity does not pay a dividend. SHOWA DENKO KK/ADR pays out 7.6% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current ratings and price targets for Ingevity and SHOWA DENKO KK/ADR, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ingevity 0 2 6 0 2.75
SHOWA DENKO KK/ADR 0 1 0 0 2.00

Ingevity presently has a consensus price target of $111.38, indicating a potential upside of 20.15%. Given Ingevity’s stronger consensus rating and higher probable upside, research analysts clearly believe Ingevity is more favorable than SHOWA DENKO KK/ADR.

Risk & Volatility

Ingevity has a beta of 2.09, meaning that its share price is 109% more volatile than the S&P 500. Comparatively, SHOWA DENKO KK/ADR has a beta of 1.7, meaning that its share price is 70% more volatile than the S&P 500.

Summary

Ingevity beats SHOWA DENKO KK/ADR on 11 of the 16 factors compared between the two stocks.

About Ingevity

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 hardwood-based and chemically activated carbon products primarily for use in gasoline vapor emission control systems in cars, trucks, motorcycles, and boats. 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 and caprolactone. This segment's products are used in various applications comprising pavement preservation, pavement adhesion promotion and warm mix paving, oil well service additives, oil production and downstream application chemicals, printing inks, adhesives, agrochemicals, lubricants and industrial intermediates, coatings resins, elastomers, adhesives, and bio-plastics. Ingevity Corporation was incorporated in 2015 and is headquartered in North Charleston, South Carolina.

About SHOWA DENKO KK/ADR

Showa Denko K.K. operates as a chemical company in Japan and internationally. It operates in six segments: Petrochemicals, Chemicals, Electronics, Inorganics, Aluminum, and Others. The Petrochemicals segment offers olefins, including ethylene, propylene, C4 fraction, cracked fuel oils, etc.; and organic chemicals, including vinyl acetate monomer, vinyl and ethyl acetate, allyl alcohol, acetaldehyde, acetic acid, and allyl ester resins, as well as polypropylene. The Chemicals segment provides functional chemicals, such as polymer emulsion and unsaturated polyester resins; industrial gases comprising liquefied carbon dioxide, dry ice, oxygen, nitrogen, hydrogen, argon, fusing ethylene, and helium; basic chemicals that include liquefied ammonia, acrylonitrile, and chloroprene rubber; and electronic chemicals, which comprise high-purity gases for electronics. The Electronics segment offers aluminum based and glass based hard disks (HDs); aluminum substrates for HDs; LED chips, epitaxial wafers, rare earth magnetic alloys, and lithium-ion battery materials; MOCVD epitaxial wafers; and advanced battery materials. The Inorganics segment provides alumina electrical fillers fused materials, abrasive grains lapping and polishing materials, plasma spraying materials, refractories, alumina for heat-radiation fillers, spherical alumina, hexagonal boron nitride, lubrication and mold-release agents, and polishing materials; and graphite electrodes. The Aluminum segment offers aluminum capacitor foils and aluminum sheets; extruded and forged products, aluminum cylinders, cast rods of aluminum alloys, compressors, heat exchangers, and power semiconductor cooling devices; and aluminum beverage cans. The Others segment engages in the general trading and building materials business; and sells chemicals, resins, metals, and electronic materials. The company was founded in 1908 and is headquartered in Tokyo, Japan.

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