Contrasting Ingevity (NYSE:NGVT) & Sociedad Quimica y Minera (NYSE:SQM)

Ingevity (NYSE:NGVT) and Sociedad Quimica y Minera (NYSE:SQM) 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, earnings, profitability, institutional ownership, dividends and risk.

Analyst Recommendations

This is a summary of current recommendations and price targets for Ingevity and Sociedad Quimica y Minera, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ingevity	1	2	1	0	2.00
Sociedad Quimica y Minera	1	7	4	0	2.25

Ingevity presently has a consensus price target of $65.00, indicating a potential upside of 9.58%. Sociedad Quimica y Minera has a consensus price target of $59.75, indicating a potential downside of 13.24%. Given Ingevity’s higher probable upside, analysts clearly believe Ingevity is more favorable than Sociedad Quimica y Minera.

Volatility and Risk

Ingevity has a beta of 1.4, suggesting that its share price is 40% more volatile than the S&P 500. Comparatively, Sociedad Quimica y Minera has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500.

Institutional & Insider Ownership

91.6% of Ingevity shares are owned by institutional investors. Comparatively, 12.4% of Sociedad Quimica y Minera shares are owned by institutional investors. 1.1% 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.

Profitability

This table compares Ingevity and Sociedad Quimica y Minera’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ingevity	-5.14%	103.69%	9.17%
Sociedad Quimica y Minera	12.12%	9.79%	4.54%

Valuation & Earnings

This table compares Ingevity and Sociedad Quimica y Minera”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ingevity	$1.41 billion	1.52	-$430.30 million	($1.82)	-32.59
Sociedad Quimica y Minera	$4.33 billion	4.55	$685.12 million	$1.83	37.63

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

Summary

Sociedad Quimica y Minera beats Ingevity on 8 of the 14 factors compared between the two stocks.

About Ingevity

Ingevity Corporation manufactures and sells activated carbon products, derivative specialty chemicals, and engineered polymers in North America, the Asia Pacific, Europe, the Middle East, Africa, and South America. It operates through three segments: Performance Materials, Performance Chemicals, and Advanced Polymer Technologies. The Performance Materials segment engineers, manufactures, and sells hardwood-based and chemically activated carbon products for use in gasoline vapor emission control systems in cars, motorcycles, trucks, and boats. This segment also produces other activated carbon products for food, water, beverage, and chemical purification applications. The Performance Chemicals segment consists of road technologies and industrial specialties. This segment's products are used in pavement construction, pavement preservation, pavement reconstruction and recycling, road markings, agrochemical dispersants, paper chemicals, and other industrial uses. The Advanced Polymer Technologies segment produces caprolactone and caprolactone-based specialty polymers for use in coatings, resins, elastomers, adhesives, bioplastics, and medical devices. It serves automotive parts and components manufacturers through sales representatives and distributors. The company was formerly known as WestRock Company, Specialty Chemicals Business and changed its name to Ingevity Corporation in September 2015. Ingevity Corporation was founded in 1964 and is headquartered in North Charleston, South Carolina.

About Sociedad Quimica y Minera

Sociedad Química y Minera de Chile S.A. operates as a mining company worldwide. The company offers specialty plant nutrients, including sodium potassium nitrate, specialty blends, and other specialty fertilizers under Ultrasol, Qrop, Speedfol, Allganic, Ultrasoline, ProP, and Prohydric brands. It also provides iodine and its derivatives for use in medical, agricultural, industrial, and human and animal nutrition products comprising x-ray contrast media, biocides, antiseptics and disinfectants, pharmaceutical intermediates, polarizing films for LCD and LED screens, chemicals, organic compounds, and pigments, as well as added to edible salt to prevent iodine deficiency disorders. In addition, the company produces lithium carbonate and lithium hydroxide which are used in the production of cathode material for secondary batteries; lithium chloride; and basic lithium chemicals and lithium derivatives used in lubricating greases for heat-resistant glass, chips for the ceramic and glazing industry, and air conditioning chemicals, as well as other pharmaceutical syntheses and metal alloys. Further, it produces potassium sulfate; and potassium chloride which is used as a fertilizer for the application of potassium to different crops. Additionally, the company produces and markets industrial chemicals, such as sodium nitrate mainly used in the production of glass and explosives, metal processing and recycling, and production of insulating materials and adhesives; potassium nitrate used as a raw material to produce frits and special glass, as well as in the enamel, metal treatment, and pyrotechnic sectors; solar salts used as a thermal storage medium in solar power generation plants; and potassium chloride as an additive in oil drilling and food processing sectors. Furthermore, it is involved in the commercialization of third-party fertilizers; and exploration of copper, gold, and silver deposits. The company was founded in 1926 and is headquartered in Santiago, Chile.