SCL vs. HTO

Last updated Jun 3, 2026

SCL (Stepan Company) and HTO (H2O America) are both stocks. SCL operates in Specialty Chemicals (Basic Materials), while HTO operates in Utilities - Regulated Water (Utilities). Over the past 10 years, SCL returned 0.41%/yr vs 7.51%/yr for HTO. At a 0.31 correlation, their price movements are largely independent.

Performance

SCL vs. HTO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Stepan Company (SCL) and H2O America (HTO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, SCL achieves a 12.07% return, which is significantly lower than HTO's 19.58% return. Over the past 10 years, SCL has underperformed HTO with an annualized return of 0.41%, while HTO has yielded a comparatively higher 7.51% annualized return.

SCL

• 1D: -0.74%
• 1M: 2.08%
• YTD: 12.07%
• 6M: 16.80%
• 1Y: 2.01%
• 3Y*: -16.91%
• 5Y*: -15.56%
• 10Y*: 0.41%

HTO

• 1D: 1.21%
• 1M: 2.40%
• YTD: 19.58%
• 6M: 23.46%
• 1Y: 14.97%
• 3Y*: -6.28%
• 5Y*: 0.45%
• 10Y*: 7.51%

*Multi-year figures are annualized to reflect compound growth (CAGR)

SCL vs. HTO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
SCL Stepan Company	12.07%	-24.60%	-30.29%	-9.74%	-12.91%	5.24%	17.75%	39.96%	-5.21%	-2.06%
HTO H2O America	19.58%	2.92%	-22.57%	-17.78%	13.40%	7.66%	-0.43%	30.19%	-11.20%	16.22%

Correlation

The correlation between SCL and HTO is 0.24, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.24
Correlation (3Y) Calculated over the trailing 3-year period	0.35
Correlation (5Y) Calculated over the trailing 5-year period	0.37
Correlation (10Y) Calculated over the trailing 10-year period	0.36
Correlation (All Time) Calculated using the full available price history since Mar 18, 1992	0.31

The correlation between SCL and HTO shifts across timeframes, from 0.24 (1 year) to 0.37 (5 years), reflecting how their relationship changes across market environments.

Fundamentals

Market Cap SCL : $1.20B HTO : $2.22B
EPS SCL : -$0.62 HTO : $2.90
PS Ratio SCL : 0.51 HTO : 2.56
PB Ratio SCL : 1.00 HTO : 1.21
Total Revenue (TTM) SCL : $2.34B HTO : $816.28M
Gross Profit (TTM) SCL : $259.28M HTO : $335.79M
EBITDA (TTM) SCL : $96.49M HTO : $273.35M

Return for Risk

SCL vs. HTO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

SCL

SCL Risk / Return Rank: 39
SCL Sharpe Ratio Rank: 43
SCL Sortino Ratio Rank: 37
SCL Omega Ratio Rank: 38
SCL Calmar Ratio Rank: 39
SCL Martin Ratio Rank: 39

HTO

HTO Risk / Return Rank: 57
HTO Sharpe Ratio Rank: 62
HTO Sortino Ratio Rank: 55
HTO Omega Ratio Rank: 51
HTO Calmar Ratio Rank: 58
HTO Martin Ratio Rank: 58

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

SCL vs. HTO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Stepan Company (SCL) and H2O America (HTO). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	SCL	HTO	Difference
Sharpe ratio Return per unit of total volatility	0.06	0.65	-0.60
Sortino ratio Return per unit of downside risk	0.31	1.05	-0.74
Omega ratio Gain probability vs. loss probability	1.05	1.12	-0.08
Calmar ratio Return relative to maximum drawdown	-0.02	0.81	-0.83
Martin ratio Return relative to average drawdown	-0.03	1.86	-1.90
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SCL vs. HTO - Sharpe Ratio Comparison

The current SCL Sharpe Ratio is 0.06, which is lower than the HTO Sharpe Ratio of 0.65. The chart below compares the historical Sharpe Ratios of SCL and HTO, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	SCL	HTO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.06	0.65	-0.60
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.52	0.02	-0.53
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.01	0.26	-0.24
Sharpe Ratio (All Time) Calculated using the full available price history	0.25	0.39	-0.14

Drawdowns

SCL vs. HTO - Drawdown Comparison

The maximum SCL drawdown since its inception was -66.78%, which is greater than HTO's maximum drawdown of -54.53%. Use the drawdown chart below to compare losses from any high point for SCL and HTO.

Drawdown Indicators

	SCL	HTO	Difference
Max Drawdown Largest peak-to-trough decline	-66.78%	-54.53%	-12.25%
Max Drawdown (1Y) Largest decline over 1 year	-32.78%	-16.72%	-16.06%
Max Drawdown (3Y) Largest decline over 3 years	-55.77%	-38.21%	-17.56%
Max Drawdown (5Y) Largest decline over 5 years	-65.91%	-42.85%	-23.06%
Max Drawdown (10Y) Largest decline over 10 years	-66.78%	-42.85%	-23.93%
Current Drawdown Current decline from peak	-57.96%	-23.86%	-34.10%
Average Drawdown Average peak-to-trough decline	-16.97%	-15.90%	-1.07%
Ulcer Index Depth and duration of drawdowns from previous peaks	19.17%	7.28%	+11.89%

Volatility

SCL vs. HTO - Volatility Comparison

Stepan Company (SCL) has a higher volatility of 7.55% compared to H2O America (HTO) at 5.18%. This indicates that SCL's price experiences larger fluctuations and is considered to be riskier than HTO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SCL	HTO	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.55%	5.18%	+2.37%
Volatility (6M) Calculated over the trailing 6-month period	30.88%	16.36%	+14.52%
Volatility (1Y) Calculated over the trailing 1-year period	36.55%	23.15%	+13.40%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	30.29%	23.99%	+6.30%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	31.61%	29.55%	+2.06%

Dividends

SCL vs. HTO - Dividend Comparison

SCL's dividend yield for the trailing twelve months is around 3.00%, which matches HTO's 2.98% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
HTO H2O America	2.98%	3.43%	3.25%	2.33%	1.77%	1.86%	1.85%	1.69%	2.01%	1.63%	1.45%	2.63%
SCL Stepan Company	3.00%	3.27%	2.33%	1.55%	1.63%	1.01%	0.95%	1.00%	1.25%	1.06%	0.95%	1.47%

Financials

SCL vs. HTO - Profitability Comparison

The chart below illustrates the profitability comparison between Stepan Company and H2O America over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

SCL - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Stepan Company reported a gross profit of 64.85M and revenue of 604.51M. Therefore, the gross margin over that period was 10.7%.

HTO - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, H2O America reported a gross profit of 0.00 and revenue of 183.29M. Therefore, the gross margin over that period was 0.0%.

SCL - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Stepan Company reported an operating income of -49.62M and revenue of 604.51M, resulting in an operating margin of -8.2%.

HTO - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, H2O America reported an operating income of 37.43M and revenue of 183.29M, resulting in an operating margin of 20.4%.

SCL - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Stepan Company reported a net income of -41.41M and revenue of 604.51M, resulting in a net margin of -6.9%.

HTO - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, H2O America reported a net income of 19.01M and revenue of 183.29M, resulting in a net margin of 10.4%.

Frequently Asked Questions

Can I hold both SCL and HTO in my portfolio?

SCL and HTO have a correlation of 0.24, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, SCL or HTO?

SCL has higher volatility (7.55%) compared to HTO (5.18%). In terms of maximum drawdown, SCL dropped -66.78% vs HTO's -54.53%.

Which has better risk-adjusted returns?

HTO currently has the higher Sharpe Ratio (0.65 vs 0.06), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.