Head-To-Head Survey: Elementis (OTCMKTS:ELMTY) and International Flavors & Fragrances (NYSE:IFF)

International Flavors & Fragrances (NYSE:IFF) and Elementis (OTCMKTS:ELMTY) are both materials companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, profitability, valuation, analyst recommendations, dividends and institutional ownership.

Risk & Volatility

International Flavors & Fragrances has a beta of 0.93, suggesting that its share price is 7% less volatile than the S&P 500. Comparatively, Elementis has a beta of 0.07, suggesting that its share price is 93% less volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations for International Flavors & Fragrances and Elementis, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
International Flavors & Fragrances	0	6	13	0	2.68
Elementis	0	0	0	0	0.00

International Flavors & Fragrances presently has a consensus target price of $91.82, suggesting a potential upside of 8.75%. Given International Flavors & Fragrances’ stronger consensus rating and higher possible upside, analysts plainly believe International Flavors & Fragrances is more favorable than Elementis.

Dividends

International Flavors & Fragrances pays an annual dividend of $1.60 per share and has a dividend yield of 1.9%. Elementis pays an annual dividend of $0.19 per share and has a dividend yield of 2.0%. International Flavors & Fragrances pays out 146.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Insider and Institutional Ownership

96.0% of International Flavors & Fragrances shares are held by institutional investors. 1.1% of International Flavors & Fragrances shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares International Flavors & Fragrances and Elementis”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
International Flavors & Fragrances	$10.89 billion	1.98	-$361.00 million	$1.09	77.46
Elementis	$597.50 million	2.26	-$45.50 million	N/A	N/A

Elementis has lower revenue, but higher earnings than International Flavors & Fragrances.

Profitability

This table compares International Flavors & Fragrances and Elementis’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
International Flavors & Fragrances	2.78%	7.11%	3.96%
Elementis	N/A	N/A	N/A

Summary

International Flavors & Fragrances beats Elementis on 10 of the 14 factors compared between the two stocks.

About International Flavors & Fragrances

International Flavors & Fragrances, Inc. engages in the manufacture and supply of flavors and fragrances used in the food, beverage, personal care, and household products industries. It operates through the following segments: Nourish, Health & Biosciences, Scent and Pharma Solutions. The Nourish segment consists of legacy Taste segment combined with N&B’s Food & Beverage division and the food protection business of N&B’s Health & Biosciences division. The Health & Biosciences business consists of a biotechnology-driven portfolio of enzymes, food cultures, probiotics and specialty ingredients for food, home and personal care, and health and wellness applications. The Scent business creates fragrance compounds, fragrance ingredients and cosmetic ingredients that are integral elements in the world’s finest perfumes and best-known household and personal care products. The Pharma Solutions business produces a vast portfolio including cellulosics and seaweed-based pharma excipients, used to improve the functionality and delivery of active pharmaceutical ingredients, including controlled or modified drug release formulations, and enabling. The company was founded in 1833 and is headquartered in New York, NY.

About Elementis

Elementis plc operates as a specialty chemical company in the United Kingdom, rest of Europe, North America, and internationally. It operates in two segments, Performance Specialties and Personal Care. The Performance Specialties segment engages in the production of rheological modifiers and additives for decorative and industrial coatings; and production and supply of talc for use in plastics, coatings, technical ceramics, and paper sectors. The Personal Care segment provides rheological modifiers and compounded products, including active ingredients for antiperspirants (AP) deodorants for personal care manufacturers. The company offers personal care products for antiperspirants, color cosmetics, and skin care applications; and performance specialties products for architectural coatings, adhesives, sealants and construction additives, and talc applications. Elementis plc was founded in 1844 and is headquartered in London, the United Kingdom.