Internationa Flavors & Fragrances (NYSE: IFF) and The Hain Celestial Group (NASDAQ:HAIN) are both mid-cap basic materials companies, but which is the superior business? We will contrast the two companies based on the strength of their earnings, dividends, analyst recommendations, profitabiliy, risk, institutional ownership and valuation.

Insider & Institutional Ownership

83.4% of Internationa Flavors & Fragrances shares are owned by institutional investors. Comparatively, 86.7% of The Hain Celestial Group shares are owned by institutional investors. 0.5% of Internationa Flavors & Fragrances shares are owned by insiders. Comparatively, 3.1% of The Hain Celestial Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Internationa Flavors & Fragrances and The Hain Celestial Group, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Internationa Flavors & Fragrances 1 11 4 0 2.19
The Hain Celestial Group 1 11 7 0 2.32

Internationa Flavors & Fragrances currently has a consensus target price of $138.45, indicating a potential upside of 4.09%. The Hain Celestial Group has a consensus target price of $41.86, indicating a potential downside of 4.34%. Given Internationa Flavors & Fragrances’ higher probable upside, equities research analysts plainly believe Internationa Flavors & Fragrances is more favorable than The Hain Celestial Group.

Earnings & Valuation

This table compares Internationa Flavors & Fragrances and The Hain Celestial Group’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Internationa Flavors & Fragrances $3.16 billion 3.32 $662.56 million $5.03 26.44
The Hain Celestial Group $2.87 billion 1.58 $265.06 million N/A N/A

Internationa Flavors & Fragrances has higher revenue and earnings than The Hain Celestial Group.

Dividends

Internationa Flavors & Fragrances pays an annual dividend of $2.56 per share and has a dividend yield of 1.9%. The Hain Celestial Group does not pay a dividend. Internationa Flavors & Fragrances pays out 50.9% of its earnings in the form of a dividend. The Hain Celestial Group has raised its dividend for 7 consecutive years.

Risk and Volatility

Internationa Flavors & Fragrances has a beta of 1.12, meaning that its stock price is 12% more volatile than the S&P 500. Comparatively, The Hain Celestial Group has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500.

Profitability

This table compares Internationa Flavors & Fragrances and The Hain Celestial Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Internationa Flavors & Fragrances 12.72% 26.75% 10.75%
The Hain Celestial Group -0.75% -1.09% -0.61%

Summary

Internationa Flavors & Fragrances beats The Hain Celestial Group on 8 of the 15 factors compared between the two stocks.

About Internationa Flavors & Fragrances

International Flavors & Fragrances Inc. creates, manufactures and supplies flavors and fragrances (including cosmetic active ingredients) used to impart or improve flavor or fragrance in a range of consumer products. The Company operates in two segments: Flavors and Fragrances. The Flavors segment offers flavor compounds that are sold to the food and beverage industries for use in consumer products, such as prepared foods, beverages, dairy, food and sweet products. The Fragrances segment offers fragrance compounds and fragrance ingredients. Its cosmetic active ingredients consist of active and functional ingredients, botanicals and delivery systems to support its customers’ cosmetic and personal care product lines. Its products are sold to manufacturers of perfumes and cosmetics, hair and other personal care products, soaps and detergents, meat and other processed foods, beverages, snacks and savory foods, sweet and baked goods, and pharmaceutical and oral care products, among others.

About The Hain Celestial Group

The Hain Celestial Group, Inc. is an organic and natural products company. The Company and its subsidiaries manufacture, market, distribute and sell organic and natural products under brand names which are sold as better-for-you products. The Company’s segments include United States, United Kingdom, Hain Pure Protein and Rest of World. Its Rest of World segment includes Canada and Europe. The Company’s brand names include Almond Dream, Arrowhead Mills, Bearitos, BluePrint, Celestial Seasonings, Cully & Sully, Danival, DeBoles, Earth’s Best, Ella’s Kitchen, Empire, Europe’s Best, Farmhouse Fare, Frank Cooper’s, FreeBird, Gale’s, Garden of Eatin’, GG UniqueFiber, Hain Pure Foods, Hartley’s, Health Valley, Imagine, Johnson’s Juice Co., Joya, Kosher Valley, Lima, The Greek Gods, Tilda, Walnut Acres, WestSoy, Yves Veggie Cuisine and Yorkshire Provender. Its personal care products are marketed under the Alba Botanica, Avalon Organics, Earth’s Best, JASON, Live Clean and Queen Helene brands.

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