Analyzing NewMarket Corporation (NEU) & Chemours Company (The) (CC)
NewMarket Corporation (NYSE: NEU) and Chemours Company (The) (NYSE:CC) are both mid-cap basic materials companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.
This is a breakdown of current ratings for NewMarket Corporation and Chemours Company (The), as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Chemours Company (The)||0||0||6||0||3.00|
Chemours Company (The) has a consensus price target of $51.83, suggesting a potential downside of 0.63%. Given Chemours Company (The)’s higher probable upside, analysts plainly believe Chemours Company (The) is more favorable than NewMarket Corporation.
Volatility & Risk
NewMarket Corporation has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500. Comparatively, Chemours Company (The) has a beta of 3.59, meaning that its stock price is 259% more volatile than the S&P 500.
This table compares NewMarket Corporation and Chemours Company (The)’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Chemours Company (The)||4.86%||155.80%||8.31%|
Insider & Institutional Ownership
55.4% of NewMarket Corporation shares are owned by institutional investors. Comparatively, 73.0% of Chemours Company (The) shares are owned by institutional investors. 16.8% of NewMarket Corporation shares are owned by company insiders. Comparatively, 1.1% of Chemours Company (The) shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
NewMarket Corporation pays an annual dividend of $7.00 per share and has a dividend yield of 1.8%. Chemours Company (The) pays an annual dividend of $0.12 per share and has a dividend yield of 0.2%. NewMarket Corporation pays out 35.8% of its earnings in the form of a dividend. Chemours Company (The) pays out 8.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Chemours Company (The) has raised its dividend for 8 consecutive years.
Valuation & Earnings
This table compares NewMarket Corporation and Chemours Company (The)’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|NewMarket Corporation||$2.05 billion||2.29||$243.44 million||$19.58||20.27|
|Chemours Company (The)||$5.40 billion||1.79||$7.00 million||$1.45||35.97|
NewMarket Corporation has higher revenue, but lower earnings than Chemours Company (The). NewMarket Corporation is trading at a lower price-to-earnings ratio than Chemours Company (The), indicating that it is currently the more affordable of the two stocks.
NewMarket Corporation Company Profile
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.
Chemours Company (The) Company Profile
The Chemours Company is a provider of performance chemicals. The Company operates through three segments: Titanium Technologies, Fluoroproducts and Chemical Solutions. The Titanium Technologies segment is a producer of titanium dioxide (TiO2). The Fluoroproducts segment is a provider of fluoroproducts, including refrigerants and industrial fluoropolymer resins. The Chemical Solutions segment is a North American provider of industrial chemicals used in gold production, oil and gas, water treatment and other industries. It delivers customized solutions with a range of industrial and specialty chemical products for markets, including plastics and coatings, refrigeration and air conditioning, industrial, mining and oil refining. Its products include titanium dioxide, refrigerants, industrial fluoropolymer resins and a portfolio of mining and industrial chemicals, including sodium cyanide. As of December 31, 2016, the Company operates 26 production facilities located in 10 countries.
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