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

Insider & Institutional Ownership

85.3% of Praxair shares are held by institutional investors. 0.2% of Praxair shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations for Ingevity Corp and Praxair, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ingevity Corp 0 1 4 0 2.80
Praxair 2 7 4 0 2.15

Ingevity Corp currently has a consensus price target of $67.00, suggesting a potential upside of 12.95%. Praxair has a consensus price target of $136.89, suggesting a potential upside of 1.99%. Given Ingevity Corp’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Ingevity Corp is more favorable than Praxair.

Dividends

Praxair pays an annual dividend of $3.15 per share and has a dividend yield of 2.3%. Ingevity Corp does not pay a dividend. Praxair pays out 58.9% of its earnings in the form of a dividend. Praxair has increased its dividend for 12 consecutive years.

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Ingevity Corp $942.10 million 2.65 $216.90 million N/A N/A
Praxair $10.92 billion 3.52 $3.54 billion $5.35 25.09

Praxair has higher revenue and earnings than Ingevity Corp.

Profitability

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

Net Margins Return on Equity Return on Assets
Ingevity Corp 13.75% 76.78% 16.55%
Praxair 14.10% 27.93% 8.25%

Summary

Praxair beats Ingevity Corp on 8 of the 14 factors compared between the two stocks.

Ingevity Corp 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.

Praxair Company Profile

Praxair, Inc. is an industrial gas company. The Company’s operations are organized into five segments, four of which have been determined on a geographic basis of segmentation: North America, Europe, South America and Asia. In addition, it operates its surface technologies business through its subsidiary, Praxair Surface Technologies, Inc., which represents the fifth segment. Its operations consist of two product lines: industrial gases and surface technologies. Its industrial gases product line centers on the manufacturing and distribution of atmospheric gases (oxygen, nitrogen, argon, rare gases) and process gases (carbon dioxide, helium, hydrogen, electronic gases, specialty gases). It also designs, engineers and builds equipment that produces industrial gases primarily for internal use. Its Surface Technologies segment, operated through Praxair Surface Technologies, Inc., supplies wear-resistant and high-temperature corrosion-resistant metallic and ceramic coatings and powders.

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