NewMarket Corporation (NEU) vs Solstice Advanced Materials Inc. (SOLS)

NewMarket Corporation and Solstice Advanced Materials Inc. are both Specialty Chemicals companies. NewMarket Corporation and Solstice Advanced Materials Inc. are of similar size ($9.0B and $8.2B). NewMarket Corporation trades at the lower P/E: 19.3× against 26.2×. NewMarket Corporation has the higher net margin (15.7% vs 5.13%) and the higher return on invested capital (13.2% vs 12.7%). Across the 19 metrics below, NewMarket Corporation leads on 16 and Solstice Advanced Materials Inc. on 3.

Valuation

Metric NEU SOLS Specialty Chemicals median
P/E 19.32 26.18 24.83
P/S 3.00 2.20 1.46
P/B 4.47 5.67 1.76
Price to free cash flow 17.37 51.41 19.84
EV/EBITDA 13.31 12.75 13.18
EV/Sales 3.28 2.52 1.84
Earnings yield 5.18% 3.82% 2.11%
Free cash flow yield 5.76% 1.95% 2.29%

Profitability

Metric NEU SOLS Specialty Chemicals median
Gross margin 31.49% 30.62% 29.23%
Operating margin 19.97% 14.36% 3.63%
Net margin 15.74% 5.13% 2.89%
Free cash flow margin 17.27% 4.27% 3.78%
Return on equity 25.02% 8.81% 3.62%
Return on assets 12.67% 7.10% 0.35%
Return on invested capital 13.17% 12.65% 2.75%

Growth

Metric NEU SOLS Specialty Chemicals median
Revenue growth (TTM) (1.31%) — 4.51%
EPS growth (last fiscal year) (7.84%) (60.91%) —
Revenue growth, 5-year CAGR 6.27% — 6.30%
Net income growth, 5-year CAGR 9.08% — 0.00%

Health

Metric NEU SOLS Specialty Chemicals median
Debt to equity 0.47 1.30 0.54
Current ratio 2.25 1.46 1.94
Net debt to EBITDA 1.21 1.85 2.03

Dividend

Metric NEU SOLS Specialty Chemicals median
Dividend yield 1.50% — 1.69%
Payout ratio 0.24 — 0.25

Size

Metric NEU SOLS Specialty Chemicals median
Market cap 8.22b 8.99b 2.43b

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