Enzymotec (NASDAQ: ENZY) and Ingevity (NYSE:NGVT) are both medical companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, valuation, profitability, institutional ownership and dividends.

Insider & Institutional Ownership

15.7% of Enzymotec shares are owned by institutional investors. Comparatively, 91.4% of Ingevity shares are owned by institutional investors. 0.1% of Ingevity shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for Enzymotec and Ingevity, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Enzymotec 0 2 0 0 2.00
Ingevity 0 0 6 0 3.00

Enzymotec currently has a consensus target price of $11.75, indicating a potential downside of 0.42%. Ingevity has a consensus target price of $76.00, indicating a potential downside of 1.83%. Given Enzymotec’s higher possible upside, equities analysts clearly believe Enzymotec is more favorable than Ingevity.

Profitability

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

Net Margins Return on Equity Return on Assets
Enzymotec -12.32% -3.26% -2.99%
Ingevity 9.86% 58.14% 12.09%

Valuation & Earnings

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

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Enzymotec $47.70 million 5.80 -$2.92 million ($0.26) -45.38
Ingevity $908.30 million 3.59 $35.20 million $2.24 34.56

Ingevity has higher revenue and earnings than Enzymotec. Enzymotec is trading at a lower price-to-earnings ratio than Ingevity, indicating that it is currently the more affordable of the two stocks.

Summary

Ingevity beats Enzymotec on 10 of the 12 factors compared between the two stocks.

Enzymotec Company Profile

Enzymotec Ltd. is a nutritional ingredients and medical foods company. The Company’s technologies, research expertise and clinical validation process enables it to develop solutions across a range of products. The Company operates in two segments: Nutrition segment and VAYA Pharma segment. Both of the Company’s segments offer a range of products that leverage its lipid-related offerings. Its product suite addresses the entire human life-cycle, from infancy to old age, and comprises ingredients in products ranging from infant formula to nutritional supplements, as well as branded medical foods, sold only under a doctor’s supervision. It markets its product portfolio to established global consumer companies and physicians and target large and growing consumer health and wellness markets. The Company’s clinically-validated products include bio-functional lipid-based compounds designed to address dietary needs, medical disorders and common diseases.

Ingevity 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.

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