5E Advanced Materials (NASDAQ:FEAM – Get Free Report) and NewMarket (NYSE:NEU – Get Free Report) are both basic materials companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, analyst recommendations, profitability and earnings.
Insider & Institutional Ownership
61.1% of NewMarket shares are held by institutional investors. 0.2% of 5E Advanced Materials shares are held by company insiders. Comparatively, 8.6% of NewMarket shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares 5E Advanced Materials and NewMarket”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| 5E Advanced Materials | N/A | N/A | -$31.56 million | ($2.67) | -0.71 |
| NewMarket | $2.73 billion | 2.39 | $418.75 million | $43.78 | 16.17 |
NewMarket has higher revenue and earnings than 5E Advanced Materials. 5E Advanced Materials is trading at a lower price-to-earnings ratio than NewMarket, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of current recommendations for 5E Advanced Materials and NewMarket, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| 5E Advanced Materials | 1 | 1 | 2 | 0 | 2.25 |
| NewMarket | 0 | 1 | 0 | 0 | 2.00 |
5E Advanced Materials presently has a consensus target price of $6.25, suggesting a potential upside of 230.69%. Given 5E Advanced Materials’ stronger consensus rating and higher probable upside, equities research analysts clearly believe 5E Advanced Materials is more favorable than NewMarket.
Profitability
This table compares 5E Advanced Materials and NewMarket’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| 5E Advanced Materials | N/A | -70.04% | -62.90% |
| NewMarket | 15.25% | 24.12% | 12.24% |
Volatility & Risk
5E Advanced Materials has a beta of 1.84, indicating that its share price is 84% more volatile than the S&P 500. Comparatively, NewMarket has a beta of 0.52, indicating that its share price is 48% less volatile than the S&P 500.
Summary
NewMarket beats 5E Advanced Materials on 9 of the 13 factors compared between the two stocks.
About 5E Advanced Materials
5E Advanced Materials, Inc. engages in the exploration and development of mineral properties in Australia and the United States. The company primarily explores for borates and lithium deposits. It holds 100% interest in the Fort Cady project located in the Mojave Desert region in eastern San Bernardino County, California. The company was formerly known as American Pacific Borates Limited. The company was incorporated in 2016 and is based in Hesperia, California.
About NewMarket
NewMarket Corporation, through its subsidiaries, primarily engages in the manufacture and sale of petroleum additives. The company offers lubricant additives for use in various vehicle and industrial applications, including engine oils, transmission fluids, off-road powertrain and hydraulic systems, gear oils, hydraulic oils, turbine oils, and other applications where metal-to-metal moving parts are utilized; engine oil additives designed for passenger cars, motorcycles, on and off-road heavy duty commercial equipment, locomotives, and engines in ocean-going vessels; driveline additives designed for products, such as transmission fluids, axle fluids, and off-road powertrain fluids; and industrial additives designed for products for industrial applications consisting of hydraulic fluids, grease, industrial gear fluids, and industrial specialty applications, such as turbine oils. It also provides fuel additives that are used to enhance the oil refining process and the performance of gasoline, diesel, biofuels, and other fuels to industry, government, original equipment manufacturers, and individual customers. In addition, the company engages in the marketing of antiknock compounds, as well as contracted manufacturing and services activities; and owns and manages a real property in Virginia. It operates in North America, Latin America, Asia Pacific, Europe, the Middle East, Africa, and India. NewMarket Corporation was founded in 1887 and is headquartered in Richmond, Virginia.
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