Reviewing Croda International (OTCMKTS:COIHY) and NewMarket (NYSE:NEU)

NewMarket (NYSE:NEU) and Croda International (OTCMKTS:COIHY) are both mid-cap basic materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, earnings, valuation, profitability, analyst recommendations and risk.

Institutional & Insider Ownership

61.1% of NewMarket shares are held by institutional investors. Comparatively, 0.1% of Croda International shares are held by institutional investors. 19.1% of NewMarket shares are held by 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.

Profitability

This table compares NewMarket and Croda International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NewMarket	17.28%	32.25%	15.10%
Croda International	N/A	N/A	N/A

Dividends

NewMarket pays an annual dividend of $11.00 per share and has a dividend yield of 1.4%. Croda International pays an annual dividend of $0.51 per share and has a dividend yield of 2.6%. NewMarket pays out 21.8% of its earnings in the form of a dividend. NewMarket has raised its dividend for 7 consecutive years.

Earnings and Valuation

This table compares NewMarket and Croda International”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NewMarket	$2.79 billion	2.60	$462.41 million	$50.45	15.30
Croda International	$2.08 billion	2.60	$202.55 million	N/A	N/A

NewMarket has higher revenue and earnings than Croda International.

Analyst Recommendations

This is a summary of current ratings and target prices for NewMarket and Croda International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NewMarket	0	0	1	0	3.00
Croda International	2	0	0	2	2.50

Risk and Volatility

NewMarket has a beta of 0.45, indicating that its stock price is 55% less volatile than the S&P 500. Comparatively, Croda International has a beta of 1.15, indicating that its stock price is 15% more volatile than the S&P 500.

Summary

NewMarket beats Croda International on 11 of the 15 factors compared between the two stocks.

About NewMarket

NewMarket Corporation, through its subsidiaries, primarily engages in the manufacture and sale of petroleum additives. The company offers lubricant additives for use in various vehicle and industrial applications, including engine oils, transmission fluids, off-road powertrain and hydraulic systems, gear oils, hydraulic oils, turbine oils, and other applications where metal-to-metal moving parts are utilized; engine oil additives designed for passenger cars, motorcycles, on and off-road heavy duty commercial equipment, locomotives, and engines in ocean-going vessels; driveline additives designed for products, such as transmission fluids, axle fluids, and off-road powertrain fluids; and industrial additives designed for products for industrial applications consisting of hydraulic fluids, grease, industrial gear fluids, and industrial specialty applications, such as turbine oils. It also provides fuel additives that are used to enhance the oil refining process and the performance of gasoline, diesel, biofuels, and other fuels to industry, government, original equipment manufacturers, and individual customers. In addition, the company engages in the marketing of antiknock compounds, as well as contracted manufacturing and services activities; and owns and manages a real property in Virginia. It operates in North America, Latin America, Asia Pacific, Europe, the Middle East, Africa, and India. NewMarket Corporation was founded in 1887 and is headquartered in Richmond, Virginia.

About Croda International

Croda International Plc engages in the consumer care, life science, and industrial specialty businesses in in Europe, the Middle East, Africa, North America, Asia, and Latin America. The company offers speciality and active ingredients across beauty care, beauty actives, and home care products, as well as fragrances and flavours. It also provides biologics drug delivery, adjuvant systems, small molecule, protein, and nucleic acid delivery platforms, as well as purity materials for pharmaceutical formulations. In addition, the company offers crop protection and seed enhancement related solutions. Croda International Plc was incorporated in 1925 and is headquartered in Goole, the United Kingdom.