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

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

Profitability

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

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

Valuation and Earnings

This table compares International Flavors & Fragrances and Flotek Industries”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	$10.78 billion	2.03	-$361.00 million	$1.09	78.69
Flotek Industries	$292.97 million	3.59	$30.53 million	$0.99	29.31

Flotek Industries has lower revenue, but higher earnings 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.

Volatility & Risk

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

Analyst Recommendations

This is a breakdown of current ratings for International Flavors & Fragrances and Flotek Industries, as reported by MarketBeat.

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

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

Institutional and Insider Ownership

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

Summary

Flotek Industries beats International Flavors & Fragrances on 9 of the 14 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 Flotek Industries

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.