Financial Survey: Croda International (OTCMKTS:COIHY) vs. International Flavors & Fragrances (NYSE:IFF)

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

Profitability

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

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

Insider and Institutional Ownership

96.0% of International Flavors & Fragrances shares are held by institutional investors. Comparatively, 0.1% of Croda International shares are held by institutional investors. 0.2% of International Flavors & Fragrances shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current ratings and price targets for International Flavors & Fragrances and Croda International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
International Flavors & Fragrances	2	4	12	0	2.56
Croda International	2	0	0	2	2.50

International Flavors & Fragrances presently has a consensus target price of $85.02, indicating a potential upside of 30.18%. Given International Flavors & Fragrances’ stronger consensus rating and higher probable upside, analysts plainly believe International Flavors & Fragrances is more favorable than Croda International.

Risk and Volatility

International Flavors & Fragrances has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500. Comparatively, Croda International has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500.

Valuation and Earnings

This table compares International Flavors & Fragrances and Croda International”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
International Flavors & Fragrances	$11.07 billion	1.51	$243.00 million	($1.62)	-40.31
Croda International	$2.08 billion	2.45	$202.55 million	N/A	N/A

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

Dividends

International Flavors & Fragrances pays an annual dividend of $1.60 per share and has a dividend yield of 2.4%. Croda International pays an annual dividend of $0.51 per share and has a dividend yield of 2.8%. International Flavors & Fragrances pays out -98.8% of its earnings in the form of a dividend.

Summary

International Flavors & Fragrances beats Croda International on 10 of the 15 factors compared between the two stocks.

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.

About Croda International

Croda International Plc engages in the consumer care, life science, and industrial specialty businesses in in Europe, the Middle East, Africa, North America, Asia, and Latin America. The company offers speciality and active ingredients across beauty care, beauty actives, and home care products, as well as fragrances and flavours. It also provides biologics drug delivery, adjuvant systems, small molecule, protein, and nucleic acid delivery platforms, as well as purity materials for pharmaceutical formulations. In addition, the company offers crop protection and seed enhancement related solutions. Croda International Plc was incorporated in 1925 and is headquartered in Goole, the United Kingdom.