NewMarket Corporation (NYSE: NEU) is one of 35 publicly-traded companies in the “Commodity Chemicals” industry, but how does it weigh in compared to its competitors? We will compare NewMarket Corporation to related companies based on the strength of its risk, institutional ownership, dividends, valuation, profitability, analyst recommendations and earnings.

Profitability

This table compares NewMarket Corporation and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NewMarket Corporation 11.57% 46.94% 16.19%
NewMarket Corporation Competitors -27.97% 23.83% 5.35%

Dividends

NewMarket Corporation pays an annual dividend of $7.00 per share and has a dividend yield of 1.6%. NewMarket Corporation pays out 34.0% of its earnings in the form of a dividend. As a group, “Commodity Chemicals” companies pay a dividend yield of 1.9% and pay out 55.0% of their earnings in the form of a dividend. NewMarket Corporation has increased its dividend for 8 consecutive years.

Analyst Ratings

This is a summary of recent ratings for NewMarket Corporation and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NewMarket Corporation 0 1 0 0 2.00
NewMarket Corporation Competitors 190 999 1275 56 2.48

As a group, “Commodity Chemicals” companies have a potential downside of 0.48%. Given NewMarket Corporation’s competitors stronger consensus rating and higher probable upside, analysts plainly believe NewMarket Corporation has less favorable growth aspects than its competitors.

Institutional and Insider Ownership

55.3% of NewMarket Corporation shares are owned by institutional investors. Comparatively, 69.9% of shares of all “Commodity Chemicals” companies are owned by institutional investors. 16.8% of NewMarket Corporation shares are owned by insiders. Comparatively, 7.9% of shares of all “Commodity Chemicals” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

NewMarket Corporation has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500. Comparatively, NewMarket Corporation’s competitors have a beta of 1.16, meaning that their average stock price is 16% more volatile than the S&P 500.

Earnings and Valuation

This table compares NewMarket Corporation and its competitors top-line revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
NewMarket Corporation $2.11 billion $402.53 million 20.74
NewMarket Corporation Competitors $4.37 billion $977.53 million 32.09

NewMarket Corporation’s competitors have higher revenue and earnings than NewMarket Corporation. NewMarket Corporation is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

NewMarket Corporation competitors beat NewMarket Corporation on 10 of the 15 factors compared.

About NewMarket Corporation

NewMarket Corporation is a holding company. The Company is the parent company of Afton Chemical Corporation (Afton), Ethyl Corporation (Ethyl), NewMarket Services Corporation (NewMarket Services), and NewMarket Development Corporation (NewMarket Development). The Company operates through petroleum additives segment, which is primarily represented by Afton. The Company manufactures chemical components that are selected to perform one or more specific functions and combine those chemicals with other chemicals or components to form additive packages for use in specified end user applications. The petroleum additives product applications include lubricant additives and fuel additives. The Company’s All other category includes the operations of the TEL business, as well as contract manufacturing and services performed by Ethyl. The Ethyl plant facility is located in Houston, Texas. It is involved in terminal operations related to TEL and other fuel additives.

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