Innospec vs Sensient Technologies
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KIRA’s take AI analyst
I put Innospec and Sensient Technologies side by side, using each one’s latest annual report. Here is what stands out:
- Innospec is the larger business, with $1.8B of revenue in fiscal 2025 against $1.6B for Sensient Technologies.
- Sensient Technologies grew revenue faster (3.5%, against −3.7%).
- Sensient Technologies kept more of each dollar of sales as operating profit (12.9% operating margin, against 7.3%).
- Innospec turned more of its sales into free cash flow (5.0% FCF margin, against 2.4%).
- Innospec earned a higher return on the capital invested in it (11.1%, against 8.9%).
- Investors pay more for each dollar of Sensient Technologies’s earnings: a P/E of 35.8x against 20.1x for Innospec.
Who comes out ahead
Of the 11 measures where higher (or lower) is clearly better, how many each company leads.
Innospec
IOSP
5/11
5-year growthFCF marginReturn on capitalNet debt / EBITDAShare count change
Sensient Technologies
SXT
5/11
Revenue growthGross marginOperating marginNet marginReturn on equity
Side by side
Best in the row
| Latest fiscal year | IOSP FY25 | SXT FY25 |
|---|---|---|
| Size | ||
| Market cap | $2.4B | $5.7B |
| Revenue | $1.8B | $1.6B |
| Free cash flow | $88.0M | $38.4M |
| Net income | $117M | $135M |
| Growth | ||
| Revenue growth | −3.7% | 3.5% |
| 5-year growth | 8.3% | 3.9% |
| Share count change | −0.5% | 0.5% |
| Profitability | ||
| Gross margin | 27.7% | 33.5% |
| Operating margin | 7.3% | 12.9% |
| Net margin | 6.6% | 8.3% |
| FCF margin | 5.0% | 2.4% |
| Return on capital | 11.1% | 8.9% |
| Return on equity | 9.2% | 11.9% |
| Balance sheet | ||
| Net debt | −$293M | $673M |
| Net debt / EBITDA | −1.7x | 2.5x |
| Dividends and buybacks | $66.3M | $69.6M |
| Valuation & quality | ||
| P/E | 20.1x | 35.8x |
| Piotroski F-score | 6 | 6 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.