Comparing Ingevity (NGVT) & Methanex (MEOH)

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

Valuation & Earnings

This table compares Ingevity and Methanex’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ingevity $908.30 million 3.27 $35.20 million $2.22 31.74
Methanex $2.00 billion 2.54 -$12.54 million $3.01 20.12

Ingevity has higher earnings, but lower revenue than Methanex. Methanex 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 Methanex’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ingevity 9.86% 58.14% 12.09%
Methanex 9.81% 16.02% 6.31%

Dividends

Methanex pays an annual dividend of $1.20 per share and has a dividend yield of 2.0%. Ingevity does not pay a dividend. Methanex pays out 39.9% of its earnings in the form of a dividend.

Analyst Ratings

This is a summary of current ratings and recommmendations for Ingevity and Methanex, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ingevity 0 0 5 0 3.00
Methanex 1 5 7 0 2.46

Ingevity currently has a consensus target price of $79.20, suggesting a potential upside of 12.39%. Methanex has a consensus target price of $57.85, suggesting a potential downside of 4.47%. Given Ingevity’s stronger consensus rating and higher probable upside, research analysts plainly believe Ingevity is more favorable than Methanex.

Volatility and Risk

Ingevity has a beta of 1.78, indicating that its stock price is 78% more volatile than the S&P 500. Comparatively, Methanex has a beta of 1.82, indicating that its stock price is 82% more volatile than the S&P 500.

Insider & Institutional Ownership

91.1% of Ingevity shares are owned by institutional investors. Comparatively, 83.1% of Methanex shares are owned by institutional investors. 0.1% of Ingevity shares are owned by insiders. Comparatively, 1.0% of Methanex shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Ingevity beats Methanex on 10 of the 16 factors compared between the two stocks.

Ingevity Company Profile

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.

Methanex Company Profile

Methanex Corp is a Canada-based producer and supplier of methanol to a range of international markets. The Company operates production sites in Canada, Chile, Egypt, New Zealand, the United States, as well as Trinidad and Tobago. Its global operations are supported by a global supply chain of terminals, storage facilities and a fleet of methanol ocean tankers. The Company’s subsidiary, Waterfront Shipping Company Limited, operates its fleet, which is made up of over 20 vessels ranging from 3,000 to 50,000 deadweight tons of capacity. It has over three production facilities in New Zealand that supply methanol primarily to customers in Asia Pacific. The Company operates over two plants in Trinidad, Titan and Atlas, which supply methanol to markets in North America, Europe, Asia Pacific and South America. Its joint venture facility in Egypt supplies methanol to markets in Europe and Asia Pacific. Its plant in Medicine Hat, Alberta, supplies methanol to customers in North America.

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