Analyzing Valvoline (VVV) & Neste Oyj (NTOIF)

Valvoline (NYSE:VVV) and Neste Oyj (OTCMKTS:NTOIF) are both basic materials companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, profitability, institutional ownership, risk and valuation.

Valuation and Earnings

This table compares Valvoline and Neste Oyj’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Valvoline $2.29 billion 1.48 $166.00 million $1.29 13.91
Neste Oyj N/A N/A N/A N/A N/A

Valvoline has higher revenue and earnings than Neste Oyj.

Dividends

Valvoline pays an annual dividend of $0.42 per share and has a dividend yield of 2.3%. Neste Oyj does not pay a dividend. Valvoline pays out 32.6% of its earnings in the form of a dividend.

Profitability

This table compares Valvoline and Neste Oyj’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Valvoline 9.97% -80.99% 13.29%
Neste Oyj N/A N/A N/A

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Valvoline and Neste Oyj, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Valvoline 2 4 4 0 2.20
Neste Oyj 0 2 3 0 2.60

Valvoline presently has a consensus target price of $22.88, indicating a potential upside of 27.51%. Given Valvoline’s higher possible upside, equities research analysts clearly believe Valvoline is more favorable than Neste Oyj.

Insider and Institutional Ownership

99.8% of Valvoline shares are owned by institutional investors. 0.5% of Valvoline shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Valvoline beats Neste Oyj on 8 of the 11 factors compared between the two stocks.

Valvoline Company Profile

Valvoline Inc. manufactures and markets engine and automotive maintenance products and services. It operates through three segments: Core North America, Quick Lubes, and International. The company offers lubricants for passenger car, light duty, and heavy duty; antifreeze/coolants for original equipment manufacturers; functional and maintenance chemicals, such as brake fluids and power steering fluids, as well as specialty coatings for automotive and industrial applications comprising rust prevention and sound absorption; and oil and air filters for light-duty vehicles. It also provides windshield wiper blades, light bulbs, serpentine belts, and drain plugs. In addition, the company operates Valvoline instant oil change service centers. As of December 18, 2018, it operated approximately 1,170 Valvoline Instant Oil Change SM centers in the United States; and approximately 100 Great Canadian Oil Change locations in Canada. The company also serves car dealers, general repair shops, and third-party quick lube locations, as well as through a network of approximately 200 distributors. It has operations in North America, Europe, the Asia Pacific, the Middle East, Latin America, Africa, and other countries. Valvoline Inc. was founded in 1866 and is headquartered in Lexington, Kentucky.

Neste Oyj Company Profile

Neste Oyj provides renewable and oil products in Finland and other Nordic countries, Baltic Rim, other European countries, North and South America, and internationally. The company operates in four segments: Renewable Products, Oil Products, Marketing & Services, and Others. The Renewable Products segment produces, markets, and sells renewable diesel, renewable jet fuels and solutions, and renewable solvents, as well as raw material for bioplastics to oil companies; retailers; and wholesale customers, such as professional transportation companies and municipalities, airlines and airports, chemical industry producers, original equipment manufacturers, and others. The Oil Products segment produces, markets, and sells diesel fuel, gasoline, aviation and marine fuels, light and heavy fuel oils, base oils, gasoline components, small engine gasoline, solvents, liquid gases, and bitumen. It serves oil companies; and companies marketing oil, fuels, lubricants, and other special products. The Marketing & Services segment markets and sells petroleum products and associated services to private motorists, transport companies, farmers, and industry and heating oil customers through a network of 796 service station, as well as direct sales. The Others segment offers engineering and technology solutions. The company was formerly known as Neste Oil Oyj and changed its name to Neste Oyj in June 2015. Neste Oyj was founded in 1948 and is headquartered in Espoo, Finland.

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