International Flavors & Fragrances (NYSE: IFF) and Amyris (NASDAQ:AMRS) are both basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, earnings, profitability, analyst recommendations, risk, institutional ownership and valuation.
International Flavors & Fragrances pays an annual dividend of $2.76 per share and has a dividend yield of 2.2%. Amyris does not pay a dividend. International Flavors & Fragrances pays out 46.9% of its earnings in the form of a dividend. International Flavors & Fragrances has raised its dividend for 8 consecutive years.
Volatility and Risk
International Flavors & Fragrances has a beta of 1.07, suggesting that its stock price is 7% more volatile than the S&P 500. Comparatively, Amyris has a beta of 0.07, suggesting that its stock price is 93% less volatile than the S&P 500.
This is a breakdown of recent recommendations and price targets for International Flavors & Fragrances and Amyris, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|International Flavors & Fragrances||2||4||5||0||2.27|
International Flavors & Fragrances currently has a consensus target price of $144.63, suggesting a potential upside of 16.07%. Amyris has a consensus target price of $9.67, suggesting a potential upside of 72.93%. Given Amyris’ stronger consensus rating and higher possible upside, analysts clearly believe Amyris is more favorable than International Flavors & Fragrances.
This table compares International Flavors & Fragrances and Amyris’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|International Flavors & Fragrances||8.83%||27.89%||10.46%|
Institutional & Insider Ownership
82.6% of International Flavors & Fragrances shares are held by institutional investors. Comparatively, 23.7% of Amyris shares are held by institutional investors. 0.5% of International Flavors & Fragrances shares are held by insiders. Comparatively, 21.8% of Amyris shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Valuation and Earnings
This table compares International Flavors & Fragrances and Amyris’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|International Flavors & Fragrances||$3.40 billion||2.89||$295.66 million||$5.89||21.15|
|Amyris||$143.45 million||1.96||-$72.32 million||($3.05)||-1.83|
International Flavors & Fragrances has higher revenue and earnings than Amyris. Amyris 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.
International Flavors & Fragrances beats Amyris on 13 of the 17 factors compared between the two stocks.
International Flavors & Fragrances Company Profile
International Flavors & Fragrances Inc., together with its subsidiaries, manufactures flavors and fragrances for use in various consumer products. It operates through two segments, Flavors and Fragrances. The Flavors segment offers flavor compounds primarily to the food and beverage industries for use in consumer products, such as prepared foods, beverages, dairy, food, and sweet products. The Fragrances segment provides fragrance compounds, which include fine fragrances comprising perfumes and colognes, as well as consumer fragrances for personal care, household products, and beauty care; fragrance ingredients comprising synthetic and natural ingredients that could be combined with other materials to create fragrance and consumer compounds; and cosmetic active ingredients consisting of active and functional ingredients, botanicals, and delivery systems to support its customers' cosmetic and personal care product lines. This segment serves perfume and toiletries manufacturers in the cosmetics industry; and manufacturers of soaps, detergents, fabric care, household cleaners, and air fresheners in the household products industry. The company has operations in Europe, Africa, the Middle East, Greater Asia, North America, and Latin America. International Flavors & Fragrances Inc. was founded in 1833 and is headquartered in New York, New York.
Amyris Company Profile
Amyris, Inc. provides various alternatives to a range of petroleum-sourced products worldwide. The company uses its industrial bioscience technology to design microbes primarily yeast, as well as to convert plant-sourced sugars into renewable ingredients. It produces and sells Biofene that converts to squalane, which is used as an emollient in cosmetics and other personal care products; and natural oils and aroma chemicals for the flavors and fragrances market. The company also provides renewable solvents, polymers, and lubricants for industrial markets; Biofene ingredients for nutraceuticals and vitamins market; and renewable fuels for transportation fuels markets. It has a collaboration partnership with Total S.A. to produce and commercialize Biofene-based diesel and jet fuels. The company was formerly known as Amyris Biotechnologies, Inc. and changed its name to Amyris, Inc. in June 2010. Amyris, Inc. was founded in 2003 and is headquartered in Emeryville, California.
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