Analyzing Koppers Holdings (NYSE:KOP) & Ingevity Corp (NGVT)

Koppers Holdings (NYSE: KOP) and Ingevity Corp (NASDAQ:NGVT) are both basic materials companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, dividends, earnings, institutional ownership, risk and profitabiliy.

Earnings and Valuation

This table compares Koppers Holdings and Ingevity Corp’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Koppers Holdings $1.42 billion 0.54 $169.60 million $1.65 22.21
Ingevity Corp $927.20 million 2.68 $204.60 million N/A N/A

Ingevity Corp has higher revenue, but lower earnings than Koppers Holdings.

Profitability

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

Net Margins Return on Equity Return on Assets
Koppers Holdings 2.47% 217.62% 5.73%
Ingevity Corp 10.53% 55.06% 10.89%

Institutional & Insider Ownership

89.2% of Koppers Holdings shares are held by institutional investors. 3.9% of Koppers Holdings shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for Koppers Holdings and Ingevity Corp, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Koppers Holdings 0 1 3 0 2.75
Ingevity Corp 0 1 4 0 2.80

Koppers Holdings currently has a consensus price target of $45.75, suggesting a potential upside of 24.83%. Ingevity Corp has a consensus price target of $65.00, suggesting a potential upside of 10.21%. Given Koppers Holdings’ higher possible upside, equities research analysts clearly believe Koppers Holdings is more favorable than Ingevity Corp.

Summary

Ingevity Corp beats Koppers Holdings on 7 of the 12 factors compared between the two stocks.

About Koppers Holdings

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.

About Ingevity Corp

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.

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