Chemours Company (The) (NYSE: CC) and NewMarket Corporation (NYSE:NEU) are both mid-cap basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, analyst recommendations, profitability, dividends and risk.

Analyst Ratings

This is a summary of current recommendations and price targets for Chemours Company (The) and NewMarket Corporation, 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
NewMarket Corporation 0 0 0 0 N/A

Chemours Company (The) currently has a consensus target price of $51.83, suggesting a potential downside of 8.44%. Given Chemours Company (The)’s higher possible upside, equities analysts clearly believe Chemours Company (The) is more favorable than NewMarket Corporation.

Earnings & Valuation

This table compares Chemours Company (The) and NewMarket Corporation’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Chemours Company (The) $5.74 billion 1.82 $1.07 billion $1.48 38.25
NewMarket Corporation $2.11 billion 2.25 $402.53 million $19.58 20.45

Chemours Company (The) has higher revenue and earnings than NewMarket Corporation. 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.

Risk & Volatility

Chemours Company (The) has a beta of 3.6, indicating that its share price is 260% more volatile than the S&P 500. Comparatively, NewMarket Corporation has a beta of 0.75, indicating that its share price is 25% less volatile than the S&P 500.

Profitability

This table compares Chemours Company (The) and NewMarket Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Chemours Company (The) 4.96% 122.97% 6.77%
NewMarket Corporation 10.85% 41.70% 14.70%

Insider and Institutional Ownership

73.0% of Chemours Company (The) shares are owned by institutional investors. Comparatively, 55.4% of NewMarket Corporation shares are owned by institutional investors. 1.1% of Chemours Company (The) shares are owned by company insiders. Comparatively, 16.8% of NewMarket Corporation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Dividends

Chemours Company (The) pays an annual dividend of $0.12 per share and has a dividend yield of 0.2%. NewMarket Corporation pays an annual dividend of $7.00 per share and has a dividend yield of 1.7%. Chemours Company (The) pays out 8.1% of its earnings in the form of a dividend. NewMarket Corporation pays out 35.8% 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. NewMarket Corporation has increased its dividend for 8 consecutive years. NewMarket Corporation is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Chemours Company (The) beats NewMarket Corporation on 9 of the 16 factors compared between the two stocks.

About Chemours Company (The)

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.

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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