WallStSmart

Element Solutions Inc (ESI)vsMaterion Corporation (MTRN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Element Solutions Inc generates 64% more annual revenue ($3.15B vs $1.92B). ESI leads profitability with a 5.7% profit margin vs 4.0%. ESI trades at a lower P/E of 49.6x. ESI earns a higher WallStSmart Score of 56/100 (C).

ESI

Buy

56

out of 100

Grade: C

Growth: 8.0Profit: 5.0Value: 3.7Quality: 6.0
Piotroski: 4/9Altman Z: 1.30

MTRN

Buy

54

out of 100

Grade: C-

Growth: 6.7Profit: 5.5Value: 4.3Quality: 7.0
Piotroski: 3/9Altman Z: 2.91
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ESISignificantly Overvalued (-25.0%)

Margin of Safety

-25.0%

Fair Value

$29.39

Current Price

$37.88

$8.49 premium

UndervaluedFair: $29.39Overvalued

Intrinsic value data unavailable for MTRN.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ESI2 strengths · Avg: 10.0/10
Revenue GrowthGrowth
56.4%10/10

Revenue surging 56.4% year-over-year

EPS GrowthGrowth
61.9%10/10

Earnings expanding 61.9% YoY

MTRN1 strengths · Avg: 10.0/10
Revenue GrowthGrowth
30.8%10/10

Revenue surging 30.8% year-over-year

Areas to Watch

ESI4 concerns · Avg: 2.5/10
Return on EquityProfitability
5.4%3/10

ROE of 5.4% — below average capital efficiency

Profit MarginProfitability
5.7%3/10

5.7% margin — thin

P/E RatioValuation
49.6x2/10

Premium valuation, high expectations priced in

Free Cash FlowQuality
$-91.70M2/10

Negative free cash flow — burning cash

MTRN4 concerns · Avg: 2.5/10
Profit MarginProfitability
4.0%3/10

4.0% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

P/E RatioValuation
57.8x2/10

Premium valuation, high expectations priced in

Free Cash FlowQuality
$-19.60M2/10

Negative free cash flow — burning cash

Comparative Analysis Report

WallStSmart Research

Bull Case : ESI

The strongest argument for ESI centers on Revenue Growth, EPS Growth. Revenue growth of 56.4% demonstrates continued momentum.

Bull Case : MTRN

The strongest argument for MTRN centers on Revenue Growth. Revenue growth of 30.8% demonstrates continued momentum. PEG of 1.28 suggests the stock is reasonably priced for its growth.

Bear Case : ESI

The primary concerns for ESI are Return on Equity, Profit Margin, P/E Ratio. A P/E of 49.6x leaves little room for execution misses.

Bear Case : MTRN

The primary concerns for MTRN are Profit Margin, Piotroski F-Score, P/E Ratio. A P/E of 57.8x leaves little room for execution misses. Thin 4.0% margins leave little buffer for downturns.

Key Dynamics to Monitor

ESI carries more volatility with a beta of 1.24 — expect wider price swings.

ESI is growing revenue faster at 56.4% — sustainability is the question.

MTRN generates stronger free cash flow (-20M), providing more financial flexibility.

Monitor SPECIALTY CHEMICALS industry trends, competitive dynamics, and regulatory changes.

Bottom Line

ESI scores higher overall (56/100 vs 54/100) and 56.4% revenue growth. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Element Solutions Inc

BASIC MATERIALS · SPECIALTY CHEMICALS · USA

Element Solutions Inc produces and sells specialty chemicals in the United States, China, and internationally. The company is headquartered in Fort Lauderdale, Florida.

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Materion Corporation

BASIC MATERIALS · OTHER INDUSTRIAL METALS & MINING · USA

Materion Corporation (MTRN) is a premier provider of advanced materials, specializing in high-performance metals and alloys essential for key sectors including aerospace, defense, telecommunications, and electronics. The company is recognized for its innovative applications of beryllium and copper, along with a diverse portfolio of specialty coatings that adhere to the highest industry standards. Driven by a robust commitment to research and development and bolstered by strategic partnerships, Materion is well-positioned to enhance its competitive edge and achieve sustainable growth through customized, innovative solutions tailored to meet the evolving needs of its varied clientele.

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