Vegalab (OTCMKTS:VEGL) and Ingevity (NYSE:NGVT) Financial Analysis

Ingevity (NYSE:NGVT) and Vegalab (OTCMKTS:VEGL) are both materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, analyst recommendations, dividends, institutional ownership and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ingevity	4.65%	284.70%	10.82%
Vegalab	N/A	N/A	N/A

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ingevity	$1.17 billion	2.29	-$167.10 million	$1.47	52.88
Vegalab	N/A	N/A	N/A	N/A	N/A

Vegalab has lower revenue, but higher earnings than Ingevity.

Insider & Institutional Ownership

91.6% of Ingevity shares are held by institutional investors. 0.9% of Ingevity shares are held by 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 target prices for Ingevity and Vegalab, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ingevity	0	3	2	0	2.40
Vegalab	0	0	0	0	0.00

Ingevity presently has a consensus price target of $80.00, suggesting a potential upside of 2.92%. Given Ingevity’s stronger consensus rating and higher possible upside, analysts clearly believe Ingevity is more favorable than Vegalab.

Summary

Ingevity beats Vegalab on 9 of the 9 factors compared between the two stocks.

About Ingevity

Ingevity Corporation manufactures and sells activated carbon products, derivative specialty chemicals, and engineered polymers in North America, the Asia Pacific, Europe, the Middle East, Africa, and South America. It operates through three segments: Performance Materials, Performance Chemicals, and Advanced Polymer Technologies. The Performance Materials segment engineers, manufactures, and sells hardwood-based and chemically activated carbon products for use in gasoline vapor emission control systems in cars, motorcycles, trucks, and boats. This segment also produces other activated carbon products for food, water, beverage, and chemical purification applications. The Performance Chemicals segment consists of road technologies and industrial specialties. This segment's products are used in pavement construction, pavement preservation, pavement reconstruction and recycling, road markings, agrochemical dispersants, paper chemicals, and other industrial uses. The Advanced Polymer Technologies segment produces caprolactone and caprolactone-based specialty polymers for use in coatings, resins, elastomers, adhesives, bioplastics, and medical devices. It serves automotive parts and components manufacturers through sales representatives and distributors. The company was formerly known as WestRock Company, Specialty Chemicals Business and changed its name to Ingevity Corporation in September 2015. Ingevity Corporation was founded in 1964 and is headquartered in North Charleston, South Carolina.

About Vegalab

Vegalab, Inc. primarily engages in the citrus packing business. The company operates in two segments, the Agronomy Business and the Packing Business. It also distributes biological pesticides, natural fertilizers, and specialty biological agents under the Vegalab brand name. The company markets its products through stocking distributors. It primarily operates in the United States. The company was formerly known as HPC Acquisitions, Inc. and changed its name to Vegalab, Inc. in November 2017. Vegalab, Inc. was founded in 1968 and is based in North Palm Beach, Florida.