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

NewMarket Corporation and Solstice Advanced Materials Inc. are both Specialty Chemicals companies. Solstice Advanced Materials Inc. is the larger, with a market value of $8.8B against $6.4B — 1.4× the size. NewMarket Corporation trades at the lower P/E: 14.0× against 26.5×. Solstice Advanced Materials Inc. grew revenue faster over the last twelve months: 9.62% against 0.89%. NewMarket Corporation has the higher net margin (16.5% vs 7.79%) and the lower return on invested capital (13.0% vs 13.1%). Both pay a dividend; NewMarket Corporation yields more (1.74% vs 0.40%). Across the 21 metrics below, NewMarket Corporation leads on 16 and Solstice Advanced Materials Inc. on 5.

Valuation

Metric NEU SOLS Specialty Chemicals median
P/E 14.01 26.54 24.46
P/S 2.29 2.11 1.64
P/B 3.28 5.60 1.88
Price to free cash flow 16.50 20.56 19.15
EV/EBITDA 10.82 12.57 12.87
EV/Sales 2.68 2.44 1.88
Earnings yield 7.14% 3.77% 2.42%
Free cash flow yield 6.06% 4.86% 2.25%

Profitability

Metric NEU SOLS Specialty Chemicals median
Gross margin 31.66% 30.90% 27.84%
Operating margin 20.22% 14.69% 5.64%
Net margin 16.45% 7.79% 4.19%
Free cash flow margin 13.85% 20.13% 3.49%
Return on equity 25.16% 13.67% 2.34%
Return on assets 13.23% 5.74% 0.45%
Return on invested capital 13.04% 13.13% 3.21%

Growth

Metric NEU SOLS Specialty Chemicals median
Revenue growth (TTM) 0.89% 9.62% 6.39%
EPS growth (last fiscal year) (7.84%) (60.91%) (9.77%)
Revenue growth, 5-year CAGR 6.27% — 6.33%
Net income growth, 5-year CAGR 9.08% — 0.00%

Health

Metric NEU SOLS Specialty Chemicals median
Debt to equity 0.43 1.31 0.59
Current ratio 2.46 1.38 2.28
Net debt to EBITDA 1.21 1.85 2.03

Dividend

Metric NEU SOLS Specialty Chemicals median
Dividend yield 1.74% 0.40% 1.80%
Payout ratio 0.24 0.11 0.40

Size

Metric NEU SOLS Specialty Chemicals median
Market cap 6.37b 8.75b 2.08b

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