Head to Head Analysis: NewMarket (NYSE:NEU) vs. Pledge Petroleum (NYSE:PROP)

NewMarket (NYSE:NEU) and Pledge Petroleum (OTCMKTS:PROP) are both basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, profitability and institutional ownership.

Insider & Institutional Ownership

55.4% of NewMarket shares are owned by institutional investors. Comparatively, 0.0% of Pledge Petroleum shares are owned by institutional investors. 17.0% of NewMarket shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations for NewMarket and Pledge Petroleum, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NewMarket 0 1 0 0 2.00
Pledge Petroleum 0 0 0 0 N/A

NewMarket currently has a consensus price target of $420.00, indicating a potential downside of 14.26%. Given NewMarket’s higher possible upside, equities analysts plainly believe NewMarket is more favorable than Pledge Petroleum.

Risk & Volatility

NewMarket has a beta of 0.44, suggesting that its stock price is 56% less volatile than the S&P 500. Comparatively, Pledge Petroleum has a beta of -22.56, suggesting that its stock price is 2,356% less volatile than the S&P 500.

Profitability

This table compares NewMarket and Pledge Petroleum’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NewMarket 12.17% 47.54% 15.18%
Pledge Petroleum N/A -541.01% -214.01%

Dividends

NewMarket pays an annual dividend of $7.60 per share and has a dividend yield of 1.6%. Pledge Petroleum does not pay a dividend. NewMarket pays out 37.4% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares NewMarket and Pledge Petroleum’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NewMarket $2.29 billion 2.39 $234.73 million $20.34 24.08
Pledge Petroleum $20,000.00 319.61 -$30,000.00 N/A N/A

NewMarket has higher revenue and earnings than Pledge Petroleum.

Summary

NewMarket beats Pledge Petroleum on 10 of the 12 factors compared between the two stocks.

NewMarket Company Profile

NewMarket Corporation, through its subsidiaries, engages in the petroleum additives businesses. 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, metalworking fluids, and other applications where metal-to-metal moving parts are utilized; and engine oil, driveline, and industrial additives. 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. The company has operations in the United States, Europe, the Asia Pacific, India, Latin America, Canada, and the Middle East. NewMarket Corporation was founded in 1887 and is headquartered in Richmond, Virginia.

Pledge Petroleum Company Profile

Pledge Petroleum Corp. does not have significant operations. Previously, it focused on the acquisition of producing oil fields. The company was formerly known as Propell Technologies Group, Inc. and changed its name to Pledge Petroleum Corp. in February 2017. Pledge Petroleum Corp. is based in Houston, Texas.

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