NewMarket Corporation (NEU) vs. Calgon Carbon Corporation (CCC) Financial Survey

NewMarket Corporation (NYSE: NEU) and Calgon Carbon Corporation (NYSE:CCC) are both basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, valuation, institutional ownership, profitability and risk.

Profitability

This table compares NewMarket Corporation and Calgon Carbon Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NewMarket Corporation 11.57% 46.94% 16.19%
Calgon Carbon Corporation 1.27% 5.46% 2.81%

Dividends

NewMarket Corporation pays an annual dividend of $7.00 per share and has a dividend yield of 1.7%. Calgon Carbon Corporation pays an annual dividend of $0.20 per share and has a dividend yield of 1.5%. NewMarket Corporation pays out 34.0% of its earnings in the form of a dividend. Calgon Carbon Corporation pays out 133.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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.

Valuation & Earnings

This table compares NewMarket Corporation and Calgon Carbon Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
NewMarket Corporation $2.11 billion 2.36 $402.53 million $20.57 20.44
Calgon Carbon Corporation $557.15 million 1.19 $80.63 million $0.15 86.67

NewMarket Corporation has higher revenue and earnings than Calgon Carbon Corporation. NewMarket Corporation is trading at a lower price-to-earnings ratio than Calgon Carbon Corporation, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

NewMarket Corporation has a beta of 0.74, suggesting that its share price is 26% less volatile than the S&P 500. Comparatively, Calgon Carbon Corporation has a beta of 1.09, suggesting that its share price is 9% more volatile than the S&P 500.

Institutional and Insider Ownership

56.6% of NewMarket Corporation shares are held by institutional investors. Comparatively, 81.6% of Calgon Carbon Corporation shares are held by institutional investors. 16.8% of NewMarket Corporation shares are held by insiders. Comparatively, 2.3% of Calgon Carbon Corporation shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and recommmendations for NewMarket Corporation and Calgon Carbon Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NewMarket Corporation 0 1 0 0 2.00
Calgon Carbon Corporation 0 2 2 0 2.50

Calgon Carbon Corporation has a consensus price target of $17.75, suggesting a potential upside of 36.54%. Given Calgon Carbon Corporation’s stronger consensus rating and higher possible upside, analysts plainly believe Calgon Carbon Corporation is more favorable than NewMarket Corporation.

Summary

NewMarket Corporation beats Calgon Carbon Corporation on 11 of the 17 factors compared between 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.

Calgon Carbon Corporation Company Profile

Calgon Carbon Corporation is a manufacturer of activated carbon, with capabilities in ultraviolet (UV) light disinfection. The Company provides purification solutions for drinking water, wastewater, pollution abatement, and a range of industrial and commercial manufacturing processes. The Company operates through four segments: Activated Carbon and Service, Equipment, Consumer and Other. The Company’s products and services are designed to protect human health and the environment from harmful contaminants in water, and air. The Company provides purification solutions for drinking water, wastewater, pollution abatement, and a range of industrial and commercial manufacturing processes. The Company operates in the United States, Europe, Japan, Africa, Canada, China, India, Latin America, and in other parts of Asia.

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