International Flavors & Fragrances (NYSE:IFF) versus Quaker Houghton (NYSE:KWR) Head to Head Survey

International Flavors & Fragrances (NYSE:IFF) and Quaker Houghton (NYSE:KWR) are both basic materials companies, but which is the better business? We will contrast the two companies based on the strength of their earnings, institutional ownership, risk, analyst recommendations, dividends, valuation and profitability.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
International Flavors & Fragrances	$11.48 billion	1.61	$243.00 million	($1.62)	-44.56
Quaker Houghton	$1.84 billion	1.51	$116.64 million	($0.49)	-326.76

International Flavors & Fragrances has higher revenue and earnings than Quaker Houghton. Quaker Houghton is trading at a lower price-to-earnings ratio than International Flavors & Fragrances, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
International Flavors & Fragrances	-3.72%	8.03%	4.12%
Quaker Houghton	-0.48%	8.64%	4.31%

Dividends

International Flavors & Fragrances pays an annual dividend of $1.60 per share and has a dividend yield of 2.2%. Quaker Houghton pays an annual dividend of $2.03 per share and has a dividend yield of 1.3%. International Flavors & Fragrances pays out -98.8% of its earnings in the form of a dividend. Quaker Houghton pays out -414.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Quaker Houghton has increased its dividend for 17 consecutive years.

Insider & Institutional Ownership

96.0% of International Flavors & Fragrances shares are held by institutional investors. Comparatively, 77.5% of Quaker Houghton shares are held by institutional investors. 0.2% of International Flavors & Fragrances shares are held by insiders. Comparatively, 1.1% of Quaker Houghton shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Volatility & Risk

International Flavors & Fragrances has a beta of 1.04, suggesting that its stock price is 4% more volatile than the S&P 500. Comparatively, Quaker Houghton has a beta of 1.33, suggesting that its stock price is 33% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and price targets for International Flavors & Fragrances and Quaker Houghton, 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
Quaker Houghton	1	2	3	0	2.33

International Flavors & Fragrances presently has a consensus target price of $86.46, indicating a potential upside of 19.76%. Quaker Houghton has a consensus target price of $158.67, indicating a potential downside of 0.90%. Given International Flavors & Fragrances’ stronger consensus rating and higher possible upside, research analysts plainly believe International Flavors & Fragrances is more favorable than Quaker Houghton.

Summary

International Flavors & Fragrances beats Quaker Houghton on 9 of the 17 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 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.