Critical Review: International Flavors & Fragrances (NYSE:IFF) versus Flotek Industries (NYSE:FTK)

Flotek Industries (NYSE:FTK – Get Free Report) and International Flavors & Fragrances (NYSE:IFF – Get Free Report) are both materials companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.

Institutional and Insider Ownership

10.9% of Flotek Industries shares are held by institutional investors. Comparatively, 96.0% of International Flavors & Fragrances shares are held by institutional investors. 2.4% of Flotek Industries shares are held by insiders. Comparatively, 1.1% of International Flavors & Fragrances shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Flotek Industries and International Flavors & Fragrances, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Flotek Industries 0 1 4 0 2.80
International Flavors & Fragrances 0 7 12 0 2.63

Flotek Industries currently has a consensus price target of $34.67, indicating a potential upside of 19.48%. International Flavors & Fragrances has a consensus price target of $91.40, indicating a potential upside of 6.57%. Given Flotek Industries’ stronger consensus rating and higher possible upside, equities analysts clearly believe Flotek Industries is more favorable than International Flavors & Fragrances.

Volatility & Risk

Flotek Industries has a beta of 1.47, indicating that its stock price is 47% more volatile than the S&P 500. Comparatively, International Flavors & Fragrances has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500.

Profitability

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

Net Margins Return on Equity Return on Assets
Flotek Industries 12.97% 21.57% 10.89%
International Flavors & Fragrances 2.78% 7.11% 3.96%

Earnings and Valuation

This table compares Flotek Industries and International Flavors & Fragrances”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Flotek Industries $292.97 million 3.59 $30.53 million $0.99 29.31
International Flavors & Fragrances $10.78 billion 2.03 -$361.00 million $1.09 78.69

Flotek Industries has higher earnings, but lower revenue than International Flavors & Fragrances. Flotek Industries 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.

Summary

Flotek Industries beats International Flavors & Fragrances on 9 of the 14 factors compared between the two stocks.

About Flotek Industries

(Get Free Report)

Flotek Industries, Inc. operates as a technology-driven green chemistry and data company that serves customers across industrial and commercial markets in the United States, the United Arab Emirates, and internationally. It operates through two segments: Chemistry Technologies (CT) and Data Analytics (DA). The CT segment designs, develops, manufactures, packages, distributes, delivers, and markets green specialty chemicals that enhance the profitability of hydrocarbon producers, as well as green specialty chemistries, and logistics and technology services. This segment primarily serves integrated oil and gas, oilfield services, independent oil and gas, national and state-owned oil, geothermal energy, solar energy, and alternative energy companies. The DA segment designs, develops, produces, sells, and supports equipment and services that create and provide valuable information on the composition and properties of energy customers' hydrocarbon fluids. It sells its products directly through a mix of in-house sales professionals, as well as contractual agency agreements. Flotek Industries, Inc. was incorporated in 1985 and is headquartered in Houston, Texas.

About International Flavors & Fragrances

(Get Free Report)

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.

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