Reviewing Ingevity (NYSE:NGVT) & Toray Industries (OTCMKTS:TRYIY)

Toray Industries (OTCMKTS:TRYIY) and Ingevity (NYSE:NGVT) are both basic materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, risk, valuation, earnings and dividends.

Insider & Institutional Ownership

91.6% of Ingevity shares are held by institutional investors. 1.1% of Ingevity shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Toray Industries and Ingevity”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Toray Industries	$16.83 billion	0.65	$514.21 million	$0.64	21.49
Ingevity	$1.41 billion	1.20	-$430.30 million	($9.74)	-4.75

Toray Industries has higher revenue and earnings than Ingevity. Ingevity is trading at a lower price-to-earnings ratio than Toray Industries, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current ratings and price targets for Toray Industries and Ingevity, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Toray Industries	0	2	0	0	2.00
Ingevity	0	1	3	0	2.75

Ingevity has a consensus price target of $55.25, indicating a potential upside of 19.38%. Given Ingevity’s stronger consensus rating and higher possible upside, analysts clearly believe Ingevity is more favorable than Toray Industries.

Profitability

This table compares Toray Industries and Ingevity’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Toray Industries	3.04%	4.26%	2.36%
Ingevity	-26.20%	63.76%	6.92%

Volatility & Risk

Toray Industries has a beta of 0.56, meaning that its stock price is 44% less volatile than the S&P 500. Comparatively, Ingevity has a beta of 1.38, meaning that its stock price is 38% more volatile than the S&P 500.

Summary

Ingevity beats Toray Industries on 9 of the 14 factors compared between the two stocks.

About Toray Industries

Toray Industries, Inc., together with its subsidiaries, manufactures, processes, and sells fibers and textiles, performance chemicals, carbon fiber composite materials, environment and engineering products, and life science products in Japan, China, North America, Europe, and internationally. The company offers filament yarns, staple fibers, and spun yarns, as well as woven and knitted fabrics of nylon, polyester, acrylics, and others; non-woven fabrics; ultra-fine fibers; and apparel products. It also provides nylon, ABS, PBT, PPS, and other resins and molded products; polyolefin foam products; polyester, polyethylene, polypropylene, and other films; processed film products; raw materials for synthetic fibers and other plastics; fine chemicals; electronic and information materials; and graphic materials. In addition, the company offers carbon fibers, carbon fiber composite materials, and molded products; analysis, physical evaluation, research, and other services; and pharmaceuticals, medical devices, etc. Further, it provides engineering services; condominiums; industrial equipment and machinery; IT-related equipment; water treatment membranes and related equipment; and materials for housing, building, and civil engineering applications. The company was formerly known as Toyo Rayon Co., Ltd. and changed its name to Toray Industries, Inc. in 1970. The company was incorporated in 1926 and is headquartered in Tokyo, Japan.

About Ingevity

Ingevity Corporation manufactures and sells activated carbon products, derivative specialty chemicals, and engineered polymers in North America, the Asia Pacific, Europe, the Middle East, Africa, and South America. It operates through three segments: Performance Materials, Performance Chemicals, and Advanced Polymer Technologies. The Performance Materials segment engineers, manufactures, and sells hardwood-based and chemically activated carbon products for use in gasoline vapor emission control systems in cars, motorcycles, trucks, and boats. This segment also produces other activated carbon products for food, water, beverage, and chemical purification applications. The Performance Chemicals segment consists of road technologies and industrial specialties. This segment's products are used in pavement construction, pavement preservation, pavement reconstruction and recycling, road markings, agrochemical dispersants, paper chemicals, and other industrial uses. The Advanced Polymer Technologies segment produces caprolactone and caprolactone-based specialty polymers for use in coatings, resins, elastomers, adhesives, bioplastics, and medical devices. It serves automotive parts and components manufacturers through sales representatives and distributors. The company was formerly known as WestRock Company, Specialty Chemicals Business and changed its name to Ingevity Corporation in September 2015. Ingevity Corporation was founded in 1964 and is headquartered in North Charleston, South Carolina.