Stepan (SCL) Competitors

Sensient Technologies (NYSE:SXT) and Stepan (NYSE:SCL) are both basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, risk, media sentiment and valuation.

Does the media favor SXT or SCL?

In the previous week, Sensient Technologies had 3 more articles in the media than Stepan. MarketBeat recorded 5 mentions for Sensient Technologies and 2 mentions for Stepan. Stepan's average media sentiment score of 1.02 beat Sensient Technologies' score of 0.73 indicating that Stepan is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Sensient Technologies	2 Very Positive mention(s)	0 Positive mention(s)	3 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Stepan	1 Very Positive mention(s)	1 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has stronger valuation & earnings, SXT or SCL?

Sensient Technologies has higher earnings, but lower revenue than Stepan. Stepan is trading at a lower price-to-earnings ratio than Sensient Technologies, indicating that it is currently the more affordable of the two stocks.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Sensient Technologies	$1.56B	2.86	$124.67M	$3.02	34.79
Stepan	$2.18B	0.61	$50.37M	$2.46	23.92

Which has more risk & volatility, SXT or SCL?

Sensient Technologies has a beta of 0.56, indicating that its stock price is 44% less volatile than the S&P 500. Comparatively, Stepan has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500.

Is SXT or SCL a better dividend stock?

Sensient Technologies pays an annual dividend of $1.64 per share and has a dividend yield of 1.6%. Stepan pays an annual dividend of $1.54 per share and has a dividend yield of 2.6%. Sensient Technologies pays out 54.3% of its earnings in the form of a dividend. Stepan pays out 62.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Stepan has raised its dividend for 57 consecutive years. Stepan is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Do institutionals & insiders believe in SXT or SCL?

90.9% of Sensient Technologies shares are owned by institutional investors. Comparatively, 82.7% of Stepan shares are owned by institutional investors. 1.2% of Sensient Technologies shares are owned by insiders. Comparatively, 6.9% of Stepan shares are owned 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.

Is SXT or SCL more profitable?

Sensient Technologies has a net margin of 8.19% compared to Stepan's net margin of 2.53%. Sensient Technologies' return on equity of 12.14% beat Stepan's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Sensient Technologies	8.19%	12.14%	6.40%
Stepan	2.53%	4.61%	2.33%

Do analysts recommend SXT or SCL?

Sensient Technologies presently has a consensus target price of $94.00, indicating a potential downside of 10.53%. Given Sensient Technologies' stronger consensus rating and higher possible upside, analysts plainly believe Sensient Technologies is more favorable than Stepan.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Sensient Technologies	0 Sell rating(s)	1 Hold rating(s)	1 Buy rating(s)	0 Strong Buy rating(s)	2.50
Stepan	0 Sell rating(s)	0 Hold rating(s)	0 Buy rating(s)	0 Strong Buy rating(s)	0.00

Summary

Sensient Technologies beats Stepan on 13 of the 19 factors compared between the two stocks.