Ingevity Corp (NASDAQ: NGVT) and Braskem (NYSE:BAK) 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 risk, profitability, analyst recommendations, institutional ownership, dividends, valuation and earnings.

Profitability

This table compares Ingevity Corp and Braskem’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%
Braskem 3.38% 34.93% 2.74%

Analyst Recommendations

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ingevity Corp 0 0 5 0 3.00
Braskem 0 0 2 0 3.00

Ingevity Corp presently has a consensus target price of $69.80, suggesting a potential downside of 2.35%. Braskem has a consensus target price of $22.00, suggesting a potential downside of 24.94%. Given Ingevity Corp’s higher possible upside, equities analysts plainly believe Ingevity Corp is more favorable than Braskem.

Earnings & Valuation

This table compares Ingevity Corp and Braskem’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Ingevity Corp $942.10 million 3.20 $216.90 million N/A N/A
Braskem $15.23 billion 0.77 $3.72 billion N/A N/A

Braskem has higher revenue and earnings than Ingevity Corp.

Institutional & Insider Ownership

0.7% of Braskem shares are held by institutional investors. 0.0% of Braskem shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Ingevity Corp beats Braskem on 6 of the 10 factors compared between the two stocks.

About Ingevity Corp

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.

About Braskem

Braskem S.A. produces thermoplastic resins. The Company’s segments are Basic petrochemicals, Polyolefins, Vinyls, the United States and Europe, and Chemical distribution. It is also engaged in the import and export of chemicals, petrochemicals and fuels, the production, supply and sale of utilities such as steam, water, compressed air, industrial gases, the provision of industrial services, and the production, supply and sale of electric energy. It also invests in other companies, either as a partner or as shareholder. It operates over 40 industrial units, over 30 of which are located in the Brazilian states of Alagoas, Bahia, Rio de Janeiro, Rio Grande do Sul and Sao Paulo; over five are located in the United States, in the states of Pennsylvania, Texas and West Virginia, and over two are located in Germany, in the cities of Wesseling and Schkopau. These units produce thermoplastic resins–polyethylene, polypropylene and polyvinyl chloride, as well as basic petrochemicals.

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