Financial Review: RPM International (NYSE:RPM) vs. Ecovyst (NYSE:ECVT)

Ecovyst (NYSE:ECVT) and RPM International (NYSE:RPM) are both basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, profitability, earnings, analyst recommendations and risk.

Earnings & Valuation

This table compares Ecovyst and RPM International”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ecovyst	$723.46 million	1.34	-$6.65 million	($0.12)	-70.70
RPM International	$7.37 billion	1.94	$688.69 million	$5.35	20.82

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

Profitability

This table compares Ecovyst and RPM International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ecovyst	-1.91%	7.69%	3.00%
RPM International	9.16%	24.22%	9.46%

Analyst Ratings

This is a breakdown of current recommendations for Ecovyst and RPM International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ecovyst	1	0	3	0	2.50
RPM International	0	6	6	1	2.62

Ecovyst presently has a consensus target price of $11.67, indicating a potential upside of 37.51%. RPM International has a consensus target price of $130.70, indicating a potential upside of 17.32%. Given Ecovyst’s higher probable upside, analysts plainly believe Ecovyst is more favorable than RPM International.

Insider & Institutional Ownership

86.7% of Ecovyst shares are owned by institutional investors. Comparatively, 81.0% of RPM International shares are owned by institutional investors. 1.5% of Ecovyst shares are owned by insiders. Comparatively, 1.6% of RPM International shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Ecovyst has a beta of 1.2, indicating that its stock price is 20% more volatile than the S&P 500. Comparatively, RPM International has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500.

Summary

RPM International beats Ecovyst on 12 of the 15 factors compared between the two stocks.

About Ecovyst

Ecovyst Inc. offers specialty catalysts and services in the United States and internationally. The company operates in two segments, Ecoservices and Advanced Materials & Catalysts. The Ecoservices segment provides sulfuric acid recycling services and end-to-end logistics for production of alkylate for refineries; and virgin sulfuric acid for mining, water treatment, and industrial applications. The Advanced Materials & Catalysts segment offers advanced materials and specialty catalyst products and process solutions to producers and licensors of polyethylene and advanced silicas. This segment also supplies specialty zeolites and zeolite-based catalysts to customers for refining of oil primarily hydrocracking catalyst and dewaxing, sustainable fuels, and emission control systems for both on-road and non-road diesel engines. The company was formerly known as PQ Group Holdings Inc. and changed its name to Ecovyst Inc. in August 2021. Ecovyst Inc. was founded in 1831 and is headquartered in Malvern, Pennsylvania.

About RPM International

RPM International Inc. manufactures and sells specialty chemicals for the industrial, specialty, and consumer markets worldwide. It offers waterproofing, coating, and traditional roofing systems; sealants, air barriers, tapes, and foams; residential home weatherization systems; roofing and building maintenance services; sealing and bonding, subfloor preparation, flooring, and glazing solutions; resin flooring systems, polyurethane, MMA waterproof, epoxy floor paint and coatings, concrete repair, and protection products; fire stopping and intumescent steel coating, and manufacturing industry solutions; rolled asphalt roofing materials and chemical admixtures; concrete and masonry admixtures, concrete fibers, curing and sealing compounds, structural grouts and mortars, epoxy adhesives, injection resins, polyurethane foams, floor hardeners and toppings, joint fillers, industrial and architectural coatings, decorative color/stains/stamps, and restoration materials; insulated building cladding materials; and concrete form wall systems. It also provides polymer flooring systems; fiberglass reinforced plastic gratings and shapes; corrosion-control coating, containment and railcar lining, fire and sound proofing, and heat and cryogenic insulation products; specialty construction products; amine curing agents, reactive diluents, and epoxy resins; fluorescent colorants and pigments; shellac-based-specialty and marine coatings; fire and water damage restoration, carpet cleaning, and disinfecting products; fuel additives; wood treatments, coatings, and touch-up products; and nail enamels, polishes, and coating components. In addition, it offers solutions for the paint contractors and DIYers, concrete restoration and flooring, metallic and faux finish coatings, cleaners, and hobby paints and cements; and caulks, adhesives, insulating foams, and patches, as well as spackling, glazing, and repair products. The company was incorporated in 1947 and is headquartered in Medina, Ohio.