Element Solutions Inc. (ESI) vs NewMarket Corporation (NEU)

Element Solutions Inc. and NewMarket Corporation are both Specialty Chemicals companies. Element Solutions Inc. and NewMarket Corporation are of similar size ($8.4B and $8.2B). NewMarket Corporation trades at the lower P/E: 19.3× against 48.3×. Element Solutions Inc. grew revenue faster over the last twelve months: 26.6% against −1.31%. NewMarket Corporation has the higher net margin (15.7% vs 5.67%) and the higher return on invested capital (13.2% vs 5.20%). Both pay a dividend; NewMarket Corporation yields more (1.50% vs 1.15%). Across the 23 metrics below, NewMarket Corporation leads on 16 and Element Solutions Inc. on 7.

Valuation

Metric ESI NEU Specialty Chemicals median
P/E 48.26 19.32 24.83
P/S 2.76 3.00 1.46
P/B 3.08 4.47 1.76
Price to free cash flow 62.81 17.37 19.84
EV/EBITDA 19.03 13.31 13.18
EV/Sales 3.37 3.28 1.84
Earnings yield 2.07% 5.18% 2.11%
Free cash flow yield 1.59% 5.76% 2.29%

Profitability

Metric ESI NEU Specialty Chemicals median
Gross margin 38.42% 31.49% 29.23%
Operating margin 12.56% 19.97% 3.63%
Net margin 5.67% 15.74% 2.89%
Free cash flow margin 4.40% 17.27% 3.78%
Return on equity 6.53% 25.02% 3.62%
Return on assets 3.31% 12.67% 0.35%
Return on invested capital 5.20% 13.17% 2.75%

Growth

Metric ESI NEU Specialty Chemicals median
Revenue growth (TTM) 26.61% (1.31%) 4.51%
EPS growth (last fiscal year) (21.78%) (7.84%) —
Revenue growth, 5-year CAGR 6.60% 6.27% 6.30%
Net income growth, 5-year CAGR 20.31% 9.08% 0.00%

Health

Metric ESI NEU Specialty Chemicals median
Debt to equity 0.75 0.47 0.54
Current ratio 2.91 2.25 1.94
Net debt to EBITDA 2.03 1.21 2.03

Dividend

Metric ESI NEU Specialty Chemicals median
Dividend yield 1.15% 1.50% 1.69%
Payout ratio 1.52 0.24 0.25

Size

Metric ESI NEU Specialty Chemicals median
Market cap 8.41b 8.22b 2.43b

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