NewMarket Corporation (NEU) vs Sasol Ltd. (SSL)

NewMarket Corporation and Sasol Ltd. are both Specialty Chemicals companies. Sasol Ltd. is the larger, with a market value of $9.1B against $8.2B — 1.1× the size. Sasol Ltd. trades at the lower P/E: 3.0× against 19.3×. Sasol Ltd. grew revenue faster over the last twelve months: 26.6% against −1.31%. NewMarket Corporation has the higher net margin (15.7% vs 8.89%) and the higher return on invested capital (13.2% vs 0.00%). Both pay a dividend; Sasol Ltd. yields more (10.7% vs 1.50%). Across the 20 metrics below, NewMarket Corporation leads on 12 and Sasol Ltd. on 8.

Valuation

Metric NEU SSL Specialty Chemicals median
P/E 19.32 3.01 24.83
P/S 3.00 n/m 1.46
P/B 4.47 n/m 1.76
Price to free cash flow 17.37 n/m 19.84
EV/EBITDA 13.31 0.37 13.18
EV/Sales 3.28 0.11 1.84
Earnings yield 5.18% 33.21% 2.11%
Free cash flow yield 5.76% 0.00% 2.29%

Profitability

Metric NEU SSL Specialty Chemicals median
Gross margin 31.49% 33.45% 29.23%
Operating margin 19.97% 0.00% 3.63%
Net margin 15.74% 8.89% 2.89%
Free cash flow margin 17.27% 0.00% 3.78%
Return on equity 25.02% 0.00% 3.62%
Return on assets 12.67% 0.00% 0.35%
Return on invested capital 13.17% 0.00% 2.75%

Growth

Metric NEU SSL Specialty Chemicals median
Revenue growth (TTM) (1.31%) 26.64% 4.51%
EPS growth (last fiscal year) (7.84%) 91.38% —
Revenue growth, 5-year CAGR 6.27% 4.12% 6.30%
Net income growth, 5-year CAGR 9.08% 4.08% 0.00%

Health

Metric NEU SSL Specialty Chemicals median
Debt to equity 0.47 0.65 0.54
Current ratio 2.25 1.79 1.94
Net debt to EBITDA 1.21 1.56 2.03

Dividend

Metric NEU SSL Specialty Chemicals median
Dividend yield 1.50% 10.69% 1.69%
Payout ratio 0.24 1.71 0.25

Size

Metric NEU SSL Specialty Chemicals median
Market cap 8.22b 9.06b 2.43b

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