Analyzing International Flavors & Fragrances (NYSE:IFF) & Orbia Advance (OTCMKTS:MXCHY)

Orbia Advance (OTCMKTS:MXCHY) and International Flavors & Fragrances (NYSE:IFF) are both basic materials companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, institutional ownership, dividends and analyst recommendations.

Insider & Institutional Ownership

96.0% of International Flavors & Fragrances shares are owned by institutional investors. 0.2% of International Flavors & Fragrances shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Orbia Advance and International Flavors & Fragrances”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Orbia Advance	$7.51 billion	0.24	$145.00 million	N/A	N/A
International Flavors & Fragrances	$11.48 billion	1.41	$243.00 million	($1.62)	-39.05

International Flavors & Fragrances has higher revenue and earnings than Orbia Advance.

Analyst Ratings

This is a summary of current ratings for Orbia Advance and International Flavors & Fragrances, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Orbia Advance	0	0	2	0	3.00
International Flavors & Fragrances	2	4	12	0	2.56

International Flavors & Fragrances has a consensus price target of $85.02, indicating a potential upside of 34.39%. Given International Flavors & Fragrances’ higher probable upside, analysts plainly believe International Flavors & Fragrances is more favorable than Orbia Advance.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Orbia Advance	2.21%	7.87%	2.14%
International Flavors & Fragrances	-3.72%	8.03%	4.12%

Dividends

Orbia Advance pays an annual dividend of $0.03 per share and has a dividend yield of 1.7%. International Flavors & Fragrances pays an annual dividend of $1.60 per share and has a dividend yield of 2.5%. International Flavors & Fragrances pays out -98.8% of its earnings in the form of a dividend.

Volatility & Risk

Orbia Advance has a beta of 0.6, meaning that its stock price is 40% less volatile than the S&P 500. Comparatively, International Flavors & Fragrances has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500.

Summary

International Flavors & Fragrances beats Orbia Advance on 12 of the 14 factors compared between the two stocks.

About Orbia Advance

Orbia Advance Corporation, S.A.B. de C.V. provides products and solutions for precision agriculture, building and infrastructure, fluorinated, polymer, and connectivity sectors worldwide. The company offers irrigation systems, agricultural and greenhouse projects, digital farming technologies, and related services; and connectivity solutions, including conduits, cable-in conduit, and other HDPE products and solutions. It also provides water delivering solutions for drinking water supply, sanitation, and urban water resilience; fluorine and downstream products, comprising fluorspar mine and produces intermediates, refrigerants, and propellants for used in automotive, infrastructure, semiconductor, health, medicine, climate control, food cold chain, energy storage, computing, and telecommunications applications; and general and specialty resins, PVC, and compounds and additives for stabilizers and plasticizers, as well as compounds formulated from polyolefin, thermoplastic polyurethane, and thermoplastic elastomer polymers for various applications. The company was formerly known as Mexichem, S.A.B. de C.V. and changed its name to Orbia Advance Corporation, S.A.B. de C.V. in August 2019. Orbia Advance Corporation, S.A.B. de C.V. was founded in 1953 and is headquartered in Mexico City, Mexico.

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.