RPM International (NYSE:RPM) & International Flavors & Fragrances (NYSE:IFF) Head to Head Comparison

International Flavors & Fragrances (NYSE:IFF) and RPM International (NYSE:RPM) are both large-cap basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, institutional ownership, valuation, risk, dividends, profitability and analyst recommendations.

Institutional & Insider Ownership

96.0% of International Flavors & Fragrances shares are owned by institutional investors. Comparatively, 80.9% of RPM International shares are owned by institutional investors. 0.2% of International Flavors & Fragrances shares are owned by insiders. Comparatively, 1.6% of RPM International shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
International Flavors & Fragrances	$11.07 billion	1.61	$243.00 million	($1.62)	-42.89
RPM International	$7.52 billion	1.83	$688.69 million	$5.35	20.05

RPM International has lower revenue, but higher earnings than International Flavors & Fragrances. International Flavors & Fragrances is trading at a lower price-to-earnings ratio than RPM International, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
International Flavors & Fragrances	-3.48%	7.95%	3.97%
RPM International	9.16%	24.22%	9.46%

Risk & Volatility

International Flavors & Fragrances has a beta of 1.04, indicating that its share price is 4% more volatile than the S&P 500. Comparatively, RPM International has a beta of 1.05, indicating that its share price is 5% more volatile than the S&P 500.

Dividends

International Flavors & Fragrances pays an annual dividend of $1.60 per share and has a dividend yield of 2.3%. RPM International pays an annual dividend of $2.16 per share and has a dividend yield of 2.0%. International Flavors & Fragrances pays out -98.8% of its earnings in the form of a dividend. RPM International pays out 40.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. RPM International has increased its dividend for 51 consecutive years. International Flavors & Fragrances is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for International Flavors & Fragrances and RPM International, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
International Flavors & Fragrances	2	4	12	0	2.56
RPM International	0	7	6	0	2.46

International Flavors & Fragrances presently has a consensus price target of $85.02, suggesting a potential upside of 22.36%. RPM International has a consensus price target of $130.18, suggesting a potential upside of 21.38%. Given International Flavors & Fragrances’ stronger consensus rating and higher probable upside, equities research analysts clearly believe International Flavors & Fragrances is more favorable than RPM International.

Summary

RPM International beats International Flavors & Fragrances on 10 of the 17 factors compared between the two stocks.

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.

About RPM International

RPM International Inc. manufactures and sells specialty chemicals for the industrial, specialty, and consumer markets worldwide. It offers waterproofing, coating, and traditional roofing systems; sealants, air barriers, tapes, and foams; residential home weatherization systems; roofing and building maintenance services; sealing and bonding, subfloor preparation, flooring, and glazing solutions; resin flooring systems, polyurethane, MMA waterproof, epoxy floor paint and coatings, concrete repair, and protection products; fire stopping and intumescent steel coating, and manufacturing industry solutions; rolled asphalt roofing materials and chemical admixtures; concrete and masonry admixtures, concrete fibers, curing and sealing compounds, structural grouts and mortars, epoxy adhesives, injection resins, polyurethane foams, floor hardeners and toppings, joint fillers, industrial and architectural coatings, decorative color/stains/stamps, and restoration materials; insulated building cladding materials; and concrete form wall systems. It also provides polymer flooring systems; fiberglass reinforced plastic gratings and shapes; corrosion-control coating, containment and railcar lining, fire and sound proofing, and heat and cryogenic insulation products; specialty construction products; amine curing agents, reactive diluents, and epoxy resins; fluorescent colorants and pigments; shellac-based-specialty and marine coatings; fire and water damage restoration, carpet cleaning, and disinfecting products; fuel additives; wood treatments, coatings, and touch-up products; and nail enamels, polishes, and coating components. In addition, it offers solutions for the paint contractors and DIYers, concrete restoration and flooring, metallic and faux finish coatings, cleaners, and hobby paints and cements; and caulks, adhesives, insulating foams, and patches, as well as spackling, glazing, and repair products. The company was incorporated in 1947 and is headquartered in Medina, Ohio.