Which Is a Better Investment, Element Solutions Inc or Stepan Company Stock?

By Jenna Brashear
September 13, 2026
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Sifting through countless of stocks in the Chemicals industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in Element Solutions Inc or Stepan Company because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.

Read on to learn how Element Solutions Inc and Stepan Company compare based on key financial metrics to determine which better meets your investment needs.

About Element Solutions Inc and Stepan Company

Element Solutions Inc operates as a specialty chemicals technology company in the United States, China, and internationally. The company operates in two segments: MacDermid Alpha Electronics Solutions and Element Specialties. Its MacDermid Alpha Electronics Solutions segment provides assembly solutions, including surface mount technologies, pastes fluxes, thermal management materials, coatings, and other attachment materials; circuitry solutions, such as circuit board metallization, circuit formation products, electronic materials, surface finishes, and film and smart surface solutions; and semiconductor solutions, which includes semiconductor assembly and wafer level packaging materials. This segment serves the mobile communications, computers, automobiles, and aerospace equipment industries. The Element Specialties segment offers industrial solutions, including electroless nickel, plating products, pre-treatment and cleaning solutions, functional conversion coatings, and water treatment; and energy solutions, which includes offshore fluids. This segment serves the aerospace, automotive, construction, consumer electronics, and oil and gas production end markets. The company was formerly known as Platform Specialty Products Corporation and changed its name to Element Solutions Inc in January 2019. Element Solutions Inc was founded in 1785 and is based in Miami Beach, Florida.

Stepan Company, together with its subsidiaries, produces and sells specialty and intermediate chemicals to other manufacturers for use in various end products in the United States, France, Poland, the United Kingdom, Brazil, Mexico, and internationally. It operates through three segments: Surfactants, Polymers, and Specialty Products. The Surfactants segment offers surfactants that are used in consumer and industrial cleaning and disinfection products, including detergents for washing clothes, dishes, carpets, and floors and walls, as well as shampoos and body washes; and other applications, such as fabric softeners, germicidal quaternary compounds, disinfectants, lubricating ingredients; emulsifiers for spreading agricultural products; and industrial applications comprising latex systems, plastics, and composites. The Polymers segment provides polyurethane polyols that are used in the manufacture of rigid foam for thermal insulation in the construction industry, as well as a base raw material for coatings, adhesives, sealants, and elastomers (CASE); polyester resins used in coating applications; specialty polyols, such as CASE and powdered polyester resins; and phthalic anhydride that is used in unsaturated polyester resins, alkyd resins, and plasticizers for applications in construction materials, as well as components of automotive, boating, and other consumer products. The Specialty Products segment offers flavors, emulsifiers, and solubilizers for use in food, flavoring, nutritional supplement, and pharmaceutical applications. Stepan Company was founded in 1932 and is headquartered in Northbrook, Illinois.

Latest Chemicals and Element Solutions Inc, Stepan Company Stock News

As of September 11, 2026, Element Solutions Inc had a $8.4 billion market capitalization, compared to the Chemicals median of $4.2 million. Element Solutions Inc’s stock is up 37.4% in 2026, down 1.8% in the previous five trading days and up 33% in the past year.

Currently, Element Solutions Inc’s price-earnings ratio is 46.7. Element Solutions Inc’s trailing 12-month revenue is $3.2 billion with a 5.7% net profit margin. Year-over-year quarterly sales growth most recently was 56.4%. Analysts expect adjusted earnings to reach $1.810 per share for the current fiscal year. Element Solutions Inc currently has a 0.9% dividend yield.

As of September 11, 2026, Stepan Company had a $1.4 billion market cap, putting it in the 49th percentile of all stocks. Stepan Company’s stock is up 30% in 2026, down 1.3% in the previous five trading days and up 28.11% in the past year.

Currently, Stepan Company does not have a price-earnings ratio. Stepan Company’s trailing 12-month revenue is $2.4 billion with a -0.1% net profit margin. Year-over-year quarterly sales growth most recently was 15.0%. Analysts expect adjusted earnings to reach $2.690 per share for the current fiscal year. Stepan Company currently has a 2.6% dividend yield.

How We Compare Element Solutions Inc and Stepan Company Stock Grades

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at Element Solutions Inc and Stepan Company’s stock grades to see how they measure up against one another.

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Element Solutions Inc and Stepan Company’s Quality Grades

Company Ticker Quality
Element Solutions Inc ESI C
Stepan Company SCL C

Like the Value Grade, AAII’s A+ Investor Quality Grade comes from the percentile rank of key metrics. Specifically, the Quality Score is the percentile rank of the average of the percentile ranks of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and the F-Score.

The score is variable, meaning it can consider all eight measures or, should any of the eight measures not be valid, the remaining measures that are valid. To be assigned a Quality Score, stocks must have a valid (non-null) measure and corresponding ranking for at least four of the eight quality measures.

The Quality Score is used to assess the underlying “quality” of a particular stock. A higher-quality stock possesses traits associated with upside potential and reduced downside risk. Backtesting of the Quality Grade shows that stocks with higher grades, on average, outperformed stocks with lower grades over the period of 1998 through 2019.

Stocks receive better grades (higher scores) for having higher scores for the quality subcomponents and worse grades (lower scores) for lower scores for the subcomponents.

Element Solutions Inc has a Quality Score of 46, which is Average. Stepan Company has a Quality Score of 50, which is Average.

The Quality Stock Winner: No Clear Winner

Neither Element Solutions Inc or Stepan Company has a high enough Quality Grade to be considered a “winner.” Investors who are considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolios. It’s important to look at a wide range of financial metrics in order to determine if Element Solutions Inc or Stepan Company is the better investment when it comes to quality.

Element Solutions Inc and Stepan Company’s Momentum Grades

Company Ticker Momentum
Element Solutions Inc ESI C
Stepan Company SCL B

Momentum grades help to uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming. Momentum is based on the price change of a stock over a specified period relative to all other stocks.

Typically, AAII looks at the weighted relative strength over the trailing four quarters. The weighted four-quarter relative strength rank is the relative price change for each of the past four quarters. The most recent quarterly price change is given a weight of 40% and each of the three previous quarters are given a weighting of 20%.

Element Solutions Inc has a Momentum Score of 52, which is Average. Stepan Company has a Momentum Score of 68, which is Strong.

The Momentum Grade Winner: Stepan Company

As you can clearly see from the Momentum Grade breakdown above, Stepan Company is considered to have stronger momentum compared to Element Solutions Inc. For those specifically looking for companies that have stronger momentum compared to other companies in the same industry, Stepan Company could be a good stock to invest in. However, it’s important for investors to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

Element Solutions Inc and Stepan Company’s Estimate Revisions Grades

Company Ticker Earnings Estimate
Element Solutions Inc ESI C
Stepan Company SCL C

Earnings estimate revisions scores consider the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, positive surprises beget further positive surprises‐or at least continued sales growth (the exact opposite is generally true, too).

Estimate revisions offer an indication of what analysts are thinking about the short-term prospects of a firm. Estimate revisions are based on the statistical significance of a firm’s last two quarterly earnings surprises and the percentage change in its consensus estimate for the current fiscal year over the past month and past three months.

Element Solutions Inc has a Earnings Estimate Score of 57, which is Neutral. Stepan Company has a Earnings Estimate Score of 58, which is Neutral.

The Earnings Estimate Revisions Stock Winner: No Clear Winner

Neither Element Solutions Inc or Stepan Company has an Earnings Estimate Revisions Grade that could be considered a “winner.” Investors considering these companies should do additional due diligence and research to see if either could be a good addition to their portfolios. It’s important to look at a wide range of financial metrics in order to determine if Element Solutions Inc or Stepan Company is the better investment when it comes to estimate revisions.

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Other Element Solutions Inc and Stepan Company Grades

In addition to Momentum, Estimate Revisions and Quality, A+ Investor also provides grades for Value and Growth.

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Growth investing builds on the idea that stocks of companies exhibiting strong, consistent and prolonged growth outperform those of slower-growth companies. AAII measures growth through consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations.

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection. Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether Element Solutions Inc and Stepan Company pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, Element Solutions Inc or Stepan Company Stock?

Overall, Element Solutions Inc stock has a Momentum Score of 52, Estimate Revisions Score of 57 and Quality Score of 46.

Stepan Company stock has a Momentum Score of 68, Estimate Revisions Score of 58 and Quality Score of 50.

Comparing Element Solutions Inc and Stepan Company’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Learn More About A+ Investor

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith, and we accept no liability for any errors or omissions. The full disclaimer can be read here.



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