NewMarket (NYSE:NEU – Get Free Report) and Basf (OTCMKTS:BASFY – Get Free Report) are both materials companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, dividends, profitability, risk and institutional ownership.
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for NewMarket and Basf, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| NewMarket | 0 | 0 | 1 | 0 | 3.00 |
| Basf | 1 | 3 | 4 | 1 | 2.56 |
Dividends
NewMarket pays an annual dividend of $12.00 per share and has a dividend yield of 1.4%. Basf pays an annual dividend of $0.47 per share and has a dividend yield of 3.0%. NewMarket pays out 25.8% of its earnings in the form of a dividend. Basf pays out 24.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. NewMarket has raised its dividend for 7 consecutive years. Basf is clearly the better dividend stock, given its higher yield and lower payout ratio.
Institutional & Insider Ownership
Profitability
This table compares NewMarket and Basf’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| NewMarket | 15.80% | 24.62% | 12.51% |
| Basf | 9.40% | 5.66% | 2.51% |
Valuation and Earnings
This table compares NewMarket and Basf”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| NewMarket | $2.73 billion | 2.99 | $418.75 million | $46.48 | 19.07 |
| Basf | $67.48 billion | 0.82 | $1.83 billion | $1.94 | 7.99 |
Basf has higher revenue and earnings than NewMarket. Basf is trading at a lower price-to-earnings ratio than NewMarket, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
NewMarket has a beta of 0.55, meaning that its share price is 45% less volatile than the S&P 500. Comparatively, Basf has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500.
Summary
NewMarket beats Basf on 10 of the 17 factors compared between the two stocks.
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.
About Basf
BASF SE operates as a chemical company worldwide. It operates through six segments: Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition & Care, and Agricultural Solutions. The Chemicals segment provides petrochemicals and intermediates. The Materials segment offers advanced materials and their precursors for applications and systems comprising isocyanates, polyamides, and inorganic basic products, as well as specialties for plastics and plastics processing industries. The Industrial Solutions segment develops and markets ingredients and additives for industrial applications, such as polymer dispersions, resins, additives, electronic materials, and antioxidants for automotive, plastics, paints and coatings, electronics, and energy and resource industries. The Surface Technologies segment provides automotive OEM and refinish coatings, surface treatment, catalysts, battery materials, and precious and base metal services for the automotive and chemical sectors. The Nutrition & Care segment offers ingredients for consumer goods in the areas of nutrition, home, personal care, and technical applications; and serves the food and feed producers, pharmaceutical, cosmetics, detergents, cleaners, and crop protection industries, as well as fast-moving consumer goods sector. The Agricultural Solutions segment provides seeds and seed treatment products; fungicides, herbicides, insecticides, and biological crop protection products; and digital farming solutions. The company engages in engineering and other; rental and leasing; and commodity trading activities. BASF SE was founded in 1865 and is headquartered in Ludwigshafen am Rhein, Germany.
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