International Flavors & Fragrances (NYSE:IFF) vs. Quaker Houghton (NYSE:KWR) Head to Head Comparison
by Sarita Garza · The Markets DailyQuaker Houghton (NYSE:KWR – Get Free Report) and International Flavors & Fragrances (NYSE:IFF – Get Free Report) are both basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, earnings, profitability, analyst recommendations and valuation.
Profitability
This table compares Quaker Houghton and International Flavors & Fragrances’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Quaker Houghton | -0.48% | 8.64% | 4.31% |
| International Flavors & Fragrances | -3.72% | 8.03% | 4.12% |
Insider & Institutional Ownership
77.5% of Quaker Houghton shares are held by institutional investors. Comparatively, 96.0% of International Flavors & Fragrances shares are held by institutional investors. 1.1% of Quaker Houghton shares are held by company insiders. Comparatively, 0.2% of International Flavors & Fragrances shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Dividends
Quaker Houghton pays an annual dividend of $2.03 per share and has a dividend yield of 1.4%. International Flavors & Fragrances pays an annual dividend of $1.60 per share and has a dividend yield of 2.3%. Quaker Houghton pays out -414.3% of its earnings in the form of a dividend. International Flavors & Fragrances pays out -98.8% 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. Quaker Houghton has raised its dividend for 17 consecutive years.
Valuation & Earnings
This table compares Quaker Houghton and International Flavors & Fragrances”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Quaker Houghton | $1.84 billion | 1.42 | $116.64 million | ($0.49) | -306.64 |
| International Flavors & Fragrances | $11.48 billion | 1.58 | $243.00 million | ($1.62) | -43.74 |
International Flavors & Fragrances has higher revenue and earnings than Quaker Houghton. Quaker Houghton is trading at a lower price-to-earnings ratio than International Flavors & Fragrances, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current recommendations for Quaker Houghton and International Flavors & Fragrances, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Quaker Houghton | 1 | 2 | 3 | 0 | 2.33 |
| International Flavors & Fragrances | 2 | 4 | 12 | 0 | 2.56 |
Quaker Houghton currently has a consensus target price of $152.33, indicating a potential upside of 1.39%. International Flavors & Fragrances has a consensus target price of $85.66, indicating a potential upside of 20.89%. Given International Flavors & Fragrances’ stronger consensus rating and higher probable upside, analysts plainly believe International Flavors & Fragrances is more favorable than Quaker Houghton.
Volatility & Risk
Quaker Houghton has a beta of 1.33, meaning that its share price is 33% more volatile than the S&P 500. Comparatively, International Flavors & Fragrances has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500.
Summary
International Flavors & Fragrances beats Quaker Houghton on 9 of the 17 factors compared between the two stocks.
About Quaker Houghton
Quaker Chemical Corporation, together with its subsidiaries, develops, produces, and markets various formulated specialty chemical products for a range of heavy industrial and manufacturing applications in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It offers metal removal fluids, cleaning fluids, corrosion inhibitors, metal drawing and forming fluids, die-cast mold releases, heat treatment and quenchants, metal forging fluids, hydraulic fluids, specialty greases, offshore sub-sea energy control fluids, rolling lubricants, rod and wire drawing fluids, and surface treatment chemicals. The company also provides chemical management services. It serves steel, aluminum, automotive, aerospace, offshore, container, mining, and metalworking companies. The company was founded in 1918 and is headquartered in Conshohocken, Pennsylvania.
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.