Quaker Houghton (NYSE:KWR – Get Free Report) and Ecovyst (NYSE:ECVT – Get Free Report) are both basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, valuation, dividends, earnings, risk, analyst recommendations and institutional ownership.
Insider & Institutional Ownership
77.5% of Quaker Houghton shares are held by institutional investors. Comparatively, 86.7% of Ecovyst shares are held by institutional investors. 1.1% of Quaker Houghton shares are held by insiders. Comparatively, 1.5% of Ecovyst shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares Quaker Houghton and Ecovyst”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Quaker Houghton | $1.84 billion | 1.34 | $116.64 million | ($0.43) | -328.52 |
| Ecovyst | $704.50 million | 1.50 | -$6.65 million | ($0.12) | -77.17 |
Quaker Houghton has higher revenue and earnings than Ecovyst. Quaker Houghton is trading at a lower price-to-earnings ratio than Ecovyst, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Quaker Houghton has a beta of 1.44, indicating that its stock price is 44% more volatile than the S&P 500. Comparatively, Ecovyst has a beta of 1.24, indicating that its stock price is 24% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Quaker Houghton and Ecovyst, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Quaker Houghton | 0 | 1 | 3 | 0 | 2.75 |
| Ecovyst | 0 | 0 | 3 | 0 | 3.00 |
Quaker Houghton currently has a consensus target price of $150.75, suggesting a potential upside of 6.72%. Ecovyst has a consensus target price of $11.67, suggesting a potential upside of 25.99%. Given Ecovyst’s stronger consensus rating and higher probable upside, analysts clearly believe Ecovyst is more favorable than Quaker Houghton.
Profitability
This table compares Quaker Houghton and Ecovyst’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Quaker Houghton | -0.39% | 8.35% | 4.25% |
| Ecovyst | -1.91% | 7.69% | 3.00% |
Summary
Ecovyst beats Quaker Houghton on 7 of the 13 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 Ecovyst
Ecovyst Inc. offers specialty catalysts and services in the United States and internationally. The company operates in two segments, Ecoservices and Advanced Materials & Catalysts. The Ecoservices segment provides sulfuric acid recycling services and end-to-end logistics for production of alkylate for refineries; and virgin sulfuric acid for mining, water treatment, and industrial applications. The Advanced Materials & Catalysts segment offers advanced materials and specialty catalyst products and process solutions to producers and licensors of polyethylene and advanced silicas. This segment also supplies specialty zeolites and zeolite-based catalysts to customers for refining of oil primarily hydrocracking catalyst and dewaxing, sustainable fuels, and emission control systems for both on-road and non-road diesel engines. The company was formerly known as PQ Group Holdings Inc. and changed its name to Ecovyst Inc. in August 2021. Ecovyst Inc. was founded in 1831 and is headquartered in Malvern, Pennsylvania.
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