Comparing Livent (NYSE:LTHM) and Ingevity (NYSE:NGVT)

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

Valuation and Earnings

This table compares Livent and Ingevity’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Livent $442.50 million 2.67 $126.10 million $0.91 8.88
Ingevity $1.13 billion 3.36 $169.10 million $4.13 22.07

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

Profitability

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

Net Margins Return on Equity Return on Assets
Livent 17.75% 16.97% 12.50%
Ingevity 14.31% 53.69% 10.79%

Analyst Recommendations

This is a breakdown of recent ratings for Livent and Ingevity, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Livent 2 4 5 0 2.27
Ingevity 0 2 6 0 2.75

Livent presently has a consensus target price of $13.12, indicating a potential upside of 62.38%. Ingevity has a consensus target price of $111.38, indicating a potential upside of 22.19%. Given Livent’s higher possible upside, research analysts plainly believe Livent is more favorable than Ingevity.

Insider & Institutional Ownership

96.7% of Livent shares are held by institutional investors. Comparatively, 92.4% of Ingevity shares are held by institutional investors. 0.7% of Livent shares are held by company insiders. Comparatively, 0.6% of Ingevity 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.

Summary

Ingevity beats Livent on 8 of the 13 factors compared between the two stocks.

Livent Company Profile

Livent Corporation manufactures and sells performance lithium compounds that are used primarily in energy storage, specialty polymers, and chemical synthesis application. The company offers lithium compounds for use in applications that have specific performance requirements, including battery-grade lithium hydroxide for use in high performance lithium-ion batteries; and supplies butyllithium, which is used as a synthesizer in the production of polymers and pharmaceutical products, as well as a range of specialty lithium compounds, including high purity lithium metal, which is used in the production of lightweight materials for aerospace applications and non-rechargeable batteries. Livent Corporation was incorporated in 2018 and is headquartered in Philadelphia, Pennsylvania.

Ingevity Company Profile

Ingevity Corporation manufactures and sells specialty chemicals and carbon materials in the United States and internationally. The company operates through two segments, Performance Materials and Performance Chemicals. The Performance Materials segment engineers, manufactures, and sells hardwood-based and chemically activated carbon products primarily for use in gasoline vapor emission control systems in cars, trucks, motorcycles, and boats. This segment also produces other activated carbon products for use in various applications, including food, water, beverage, and chemical purification. The Performance Chemicals segment develops, manufactures, and sells a range of specialty chemicals derived from co-products of the Kraft pulping process and caprolactone. This segment's products are used in various applications comprising pavement preservation, pavement adhesion promotion and warm mix paving, oil well service additives, oil production and downstream application chemicals, printing inks, adhesives, agrochemicals, lubricants and industrial intermediates, coatings resins, elastomers, adhesives, and bio-plastics. Ingevity Corporation was incorporated in 2015 and is headquartered in North Charleston, South Carolina.

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