Financial Survey: Ingevity (NGVT) and UFP Technologies (UFPT)

Ingevity (NYSE: NGVT) and UFP Technologies (NASDAQ:UFPT) are both basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, analyst recommendations, profitability, earnings and risk.

Valuation & Earnings

This table compares Ingevity and UFP Technologies’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ingevity $908.30 million 3.32 $35.20 million $2.22 32.28
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.

Profitability

This table compares Ingevity and UFP Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ingevity 14.54% 66.54% 17.27%
UFP Technologies 5.43% 6.83% 6.03%

Risk and Volatility

Ingevity has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500. Comparatively, UFP Technologies has a beta of 0.13, meaning that its share price is 87% less volatile than the S&P 500.

Insider and Institutional Ownership

91.1% of Ingevity shares are held by institutional investors. Comparatively, 68.4% of UFP Technologies shares are held by institutional investors. 0.1% of Ingevity shares are held by company insiders. Comparatively, 13.3% of UFP Technologies shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings for Ingevity and UFP Technologies, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ingevity 0 0 5 0 3.00
UFP Technologies 0 0 0 0 N/A

Ingevity presently has a consensus price target of $79.20, indicating a potential upside of 10.51%. Given Ingevity’s higher possible upside, equities research analysts clearly believe Ingevity is more favorable than UFP Technologies.

Summary

Ingevity beats UFP Technologies on 12 of the 13 factors compared between the two stocks.

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.

UFP Technologies Company Profile

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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