Verenium (NASDAQ: VRNM) and Ingevity (NYSE:NGVT) are both commodity chemicals – nec companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, institutional ownership, analyst recommendations, risk and profitability.
Institutional & Insider Ownership
91.1% of Ingevity shares are held by institutional investors. 0.1% of Ingevity shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
This is a summary of current ratings and target prices for Verenium and Ingevity, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Ingevity has a consensus target price of $79.20, suggesting a potential upside of 6.24%. Given Ingevity’s higher possible upside, analysts clearly believe Ingevity is more favorable than Verenium.
Earnings & Valuation
This table compares Verenium and Ingevity’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Ingevity||$908.30 million||3.46||$35.20 million||$2.22||33.58|
Ingevity has higher revenue and earnings than Verenium. Verenium is trading at a lower price-to-earnings ratio than Ingevity, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Verenium has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500. Comparatively, Ingevity has a beta of 1.93, suggesting that its share price is 93% more volatile than the S&P 500.
This table compares Verenium and Ingevity’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Ingevity beats Verenium on 11 of the 11 factors compared between the two stocks.
Verenium Company Profile
Verenium Corporation (Verenium) is an industrial biotechnology company. The Company develops and commercializes enzymes for use in a range of industrial processes. It manufactures and markets its enzyme products in the fields of animal health and nutrition, grain processing, oilfield services and other industrial processes, such as pulp and paper and textiles. As of December 31, 2012, it marketed commercial enzyme products, either independently or in collaboration with its partners. In addition, it has developed a pipeline of enzyme product candidates. Its products are organized into four product lines: animal health and nutrition, grain processing, oilfield services and other industrial processes. As of December 31, 2012, it markets nine commercial enzyme products. In October 2013, BASF SE acquired 71% stake in the Company.
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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