Reviewing International Flavors & Fragrances (NYSE:IFF) & SIKA (OTCMKTS:SXYAY)

SIKA (OTCMKTS:SXYAY) and International Flavors & Fragrances (NYSE:IFF) are both large-cap basic materials companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, earnings, risk, valuation, analyst recommendations, profitability and institutional ownership.

Institutional and Insider Ownership

96.0% of International Flavors & Fragrances shares are owned by institutional investors. 0.2% of International Flavors & Fragrances shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Dividends

SIKA pays an annual dividend of $0.09 per share and has a dividend yield of 0.5%. International Flavors & Fragrances pays an annual dividend of $1.60 per share and has a dividend yield of 2.5%. International Flavors & Fragrances pays out -103.2% of its earnings in the form of a dividend.

Profitability

This table compares SIKA and International Flavors & Fragrances’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SIKA	N/A	N/A	N/A
International Flavors & Fragrances	-3.48%	7.95%	3.97%

Analyst Ratings

This is a breakdown of recent ratings and price targets for SIKA and International Flavors & Fragrances, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SIKA	1	1	2	3	3.00
International Flavors & Fragrances	2	4	13	0	2.58

International Flavors & Fragrances has a consensus target price of $86.07, indicating a potential upside of 36.77%. Given International Flavors & Fragrances’ higher possible upside, analysts plainly believe International Flavors & Fragrances is more favorable than SIKA.

Valuation and Earnings

This table compares SIKA 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
SIKA	$13.36 billion	2.34	$1.41 billion	N/A	N/A
International Flavors & Fragrances	$11.30 billion	1.43	$243.00 million	($1.55)	-40.60

SIKA has higher revenue and earnings than International Flavors & Fragrances.

Summary

International Flavors & Fragrances beats SIKA on 8 of the 14 factors compared between the two stocks.

About SIKA

Sika AG, a specialty chemicals company, develops, produces, and sells systems and products for bonding, sealing, damping, reinforcing, and protecting in the building sector and motor vehicle industry worldwide. The company offers tile adhesives and grouts, systems for under-tile waterproofing, sound reduction, renders, decorative finishes for exterior and interior walls, as well as exterior insulation finishing system; develops admixtures and additives for concrete, cement, and mortar production; and flat roofing systems. It also provides a range of technologies used for below and above-ground waterproofing, including flexible membrane systems, liquid-applied membranes, joint waterproofing systems, and waterproofing mortars and injection resins for commercial and residential basements, tunnels, bridges, and various types of water-retaining structures, such as reservoirs, storage basins, and storage tanks. In addition, the company offers flooring solutions, such as synthetic resin and cementitious systems for industrial and commercial buildings; and sealants, adhesives, tapes, and spray foams for the building facades, interior finishing, and infrastructure projects. Further, it provides repairing, reinforcing, and protective solutions for concrete structures, such as repair mortars, shrinking grouts, anchoring adhesives, protective coatings, corrosion control, and structural strengthening systems. The company serves automobile and commercial vehicle assembly, automotive aftermarket, marine vessel, industrial lamination, renewable energy, home appliance, and facade engineering industries. The company was founded in 1910 and is headquartered in Baar, Switzerland.

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.