5N Plus (OTCMKTS:FPLSF – Get Free Report) and Innospec (NASDAQ:IOSP – Get Free Report) are both materials companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, earnings, analyst recommendations, risk, profitability, dividends and valuation.
Volatility and Risk
5N Plus has a beta of 1.94, meaning that its share price is 94% more volatile than the S&P 500. Comparatively, Innospec has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500.
Profitability
This table compares 5N Plus and Innospec’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| 5N Plus | 11.99% | 26.34% | 11.39% |
| Innospec | 7.49% | 9.36% | 6.90% |
Analyst Recommendations
This is a breakdown of recent ratings for 5N Plus and Innospec, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| 5N Plus | 0 | 1 | 2 | 1 | 3.00 |
| Innospec | 0 | 2 | 0 | 0 | 2.00 |
Insider & Institutional Ownership
0.1% of 5N Plus shares are owned by institutional investors. Comparatively, 96.6% of Innospec shares are owned by institutional investors. 3.9% of 5N Plus shares are owned by company insiders. Comparatively, 1.4% of Innospec shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares 5N Plus and Innospec”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| 5N Plus | $391.06 million | 5.77 | $50.57 million | $0.64 | 39.22 |
| Innospec | $1.78 billion | 1.08 | $116.60 million | $5.67 | 13.71 |
Innospec has higher revenue and earnings than 5N Plus. Innospec is trading at a lower price-to-earnings ratio than 5N Plus, indicating that it is currently the more affordable of the two stocks.
Summary
5N Plus beats Innospec on 10 of the 14 factors compared between the two stocks.
About 5N Plus
5N Plus Inc. is a Canadian producer of specialty semiconductors and performance materials. The company processes and purifies metals and develops compounds and engineered materials used in applications where precise material properties and high purity are important. Its products include specialty metals and chemicals, semiconductor materials and wafers, and solar cells. These materials serve markets such as space and terrestrial solar power, electronics, healthcare, and other industrial applications.
About Innospec
Innospec Inc. is a global specialty chemicals company that develops and manufactures products for customers in the fuels, oilfield and performance chemicals markets. Its Fuel Specialties business supplies additives for fuels and lubricants, while its Oilfield Services business provides chemical products and services used in oil and gas operations. Through its Performance Chemicals business, Innospec makes specialty ingredients for applications including personal care, home care and agriculture. Its products are used by industrial and consumer-products manufacturers around the world.
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