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 $9.5B against $8.2B — 1.2× the size. NewMarket Corporation trades at the lower P/E: 18.8× against 27.4×. NewMarket Corporation has the higher net margin (15.7% vs 5.13%) and the higher return on invested capital (13.2% vs 12.7%). Both pay a dividend; NewMarket Corporation yields more (1.37% vs 0.38%). Across the 20 metrics below, NewMarket Corporation leads on 17 and Solstice Advanced Materials Inc. on 3.

Valuation

Metric NEU SOLS Specialty Chemicals median
P/E 18.85 27.38 25.37
P/S 2.93 2.30 1.46
P/B 4.36 5.93 1.84
Price to free cash flow 16.94 53.77 21.16
EV/EBITDA 13.51 13.26 12.82
EV/Sales 3.33 2.62 1.85
Earnings yield 5.31% 3.65% 2.11%
Free cash flow yield 5.90% 1.86% 2.16%

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% 3.76%
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%) (14.40%)
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 1.37% 0.38% 1.73%
Payout ratio 0.26 0.10 0.41

Size

Metric NEU SOLS Specialty Chemicals median
Market cap 8.16b 9.52b 2.41b

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