Ingevity (NYSE: NGVT) and UFP Technologies (NASDAQ:UFPT) are both basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, profitability, dividends, analyst recommendations, earnings, institutional ownership and valuation.
Risk and Volatility
Ingevity has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500. Comparatively, UFP Technologies has a beta of 0.13, suggesting that its stock price is 87% less volatile than the S&P 500.
This table compares Ingevity and UFP Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares Ingevity and UFP Technologies’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Ingevity||$908.30 million||3.30||$35.20 million||$2.22||32.09|
|UFP Technologies||$146.13 million||1.42||$7.97 million||$1.09||26.24|
Ingevity has higher revenue and earnings than UFP Technologies. UFP Technologies is trading at a lower price-to-earnings ratio than Ingevity, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and target prices for Ingevity and UFP Technologies, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Ingevity presently has a consensus price target of $79.20, indicating a potential upside of 11.16%. Given Ingevity’s higher probable upside, equities research analysts plainly believe Ingevity is more favorable than UFP Technologies.
Insider & Institutional Ownership
91.4% of Ingevity shares are held by institutional investors. Comparatively, 69.2% of UFP Technologies shares are held by institutional investors. 0.1% of Ingevity shares are held by insiders. Comparatively, 13.3% of UFP Technologies shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Ingevity beats UFP Technologies on 12 of the 13 factors compared between the two stocks.
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 UFP Technologies
UFP Technologies, Inc. is a designer and custom converter of foams, plastics, composites and natural fiber materials. The Company is engaged in providing solutions to customers primarily within the medical, automotive, consumer, electronics, industrial, and aerospace and defense markets. It converts these materials using laminating, molding, and fabricating manufacturing technologies. The Company’s raw materials consist of polyethylene and polyurethane foams, sheet plastics, pulp fiber, cross-linked polyethylene and reticulated polyurethane foams, fabric and foam laminates, and natural fiber materials. The Company converts these materials to provide customers various solutions, including automotive interior trim, medical device components, disposable wound care components, military uniform and gear components, athletic padding, air filtration, high-temperature insulation, abrasive nail files and other beauty aids, and cushion packaging for their products.
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