Analyzing Innospec (IOSP) & Its Competitors

Innospec (NASDAQ:IOSP) is one of 295 public companies in the “Chemicals” industry, but how does it weigh in compared to its rivals? We will compare Innospec to similar businesses based on the strength of its profitability, valuation, institutional ownership, earnings, dividends, risk and analyst recommendations.

Dividends

Innospec pays an annual dividend of $1.84 per share and has a dividend yield of 2.3%. Innospec pays out 32.5% of its earnings in the form of a dividend. As a group, “Chemicals” companies pay a dividend yield of 3.1% and pay out 103.5% of their earnings in the form of a dividend. Innospec has increased its dividend for 11 consecutive years.

Volatility and Risk

Innospec has a beta of 0.88, meaning that its stock price is 12% less volatile than the S&P 500. Comparatively, Innospec’s rivals have a beta of 0.93, meaning that their average stock price is 7% less volatile than the S&P 500.

Earnings and Valuation

This table compares Innospec and its rivals revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Innospec	$1.78 billion	$116.60 million	14.15
Innospec Competitors	$6.36 billion	$222.31 million	10.00

Innospec’s rivals have higher revenue and earnings than Innospec. Innospec is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Innospec and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Innospec	0	2	0	0	2.00
Innospec Competitors	3250	12222	14141	519	2.40

As a group, “Chemicals” companies have a potential upside of 7.96%. Given Innospec’s rivals stronger consensus rating and higher probable upside, analysts clearly believe Innospec has less favorable growth aspects than its rivals.

Profitability

This table compares Innospec and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Innospec	7.49%	9.36%	6.90%
Innospec Competitors	-59.67%	0.26%	-1.43%

Insider and Institutional Ownership

96.6% of Innospec shares are held by institutional investors. Comparatively, 48.0% of shares of all “Chemicals” companies are held by institutional investors. 1.4% of Innospec shares are held by company insiders. Comparatively, 13.9% of shares of all “Chemicals” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Innospec rivals beat Innospec on 9 of the 15 factors compared.

About Innospec

Innospec Inc. develops, manufactures, blends, markets, and supplies specialty chemicals in the United States, rest of North America, the United Kingdom, rest of Europe, and internationally. The company's Fuel Specialties segment offers a range of specialty chemical products that are used as additives in additives in diesel, jet, marine, fuel oil and other fuels. This segment's products are used in the operation of commercial trucking, marine and aviation engines, power station generators, heating oil, and other industrial machinery applications. Its Performance Chemicals segment provides technology-based solutions for its customers' processes or products that focuses on the personal care, home care, agrochemical, construction, mining, and other industrial markets. The company's Oilfield Services segment develops and markets chemical solutions for drilling, completion, fracturing, stimulation, and completion operations; and products for oil and gas production. It sells its products primarily to oil and gas exploration and production companies, oil refineries, fuel manufacturers and users, personal care and home care companies, formulators of agrochemical, and other chemical and industrial companies. The company was formerly known as Octel Corp. and changed its name to Innospec Inc. in January 2006. Innospec Inc. was founded in 1938 and is headquartered in Englewood, Colorado.