Head-To-Head Survey: Symrise (OTCMKTS:SYIEY) versus NewMarket (NYSE:NEU)

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

Volatility and Risk

NewMarket has a beta of 0.49, meaning that its stock price is 51% less volatile than the S&P 500. Comparatively, Symrise has a beta of 0.71, meaning that its stock price is 29% less volatile than the S&P 500.

Valuation and Earnings

This table compares NewMarket and Symrise”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NewMarket	$2.79 billion	2.39	$462.41 million	$47.33	14.99
Symrise	$5.41 billion	2.07	$517.49 million	N/A	N/A

Symrise has higher revenue and earnings than NewMarket.

Insider and Institutional Ownership

61.1% of NewMarket shares are owned by institutional investors. 19.1% of NewMarket shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and price targets for NewMarket and Symrise, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NewMarket	0	0	1	0	3.00
Symrise	0	1	2	1	3.00

Dividends

NewMarket pays an annual dividend of $12.00 per share and has a dividend yield of 1.7%. Symrise pays an annual dividend of $0.18 per share and has a dividend yield of 0.9%. NewMarket pays out 25.4% of its earnings in the form of a dividend. NewMarket has increased its dividend for 7 consecutive years. NewMarket is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NewMarket	16.33%	28.53%	14.02%
Symrise	N/A	N/A	N/A

Summary

NewMarket beats Symrise on 8 of the 14 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 Symrise

Symrise AG supplies fragrances, flavorings, cosmetic active ingredients and raw materials, and functional ingredients in Europe, Africa, the Middle East, North America, the Asia Pacific, and Latin America. It operates through two segments, Taste, Nutrition & Health; and Scent & Care. The Taste, Nutrition & Health segment provides functional ingredients and product solutions used in the production of food and beverages; savory flavors; natural and sustainable ingredients for food and beverage manufacturers, baby food, and dietary supplements; product solutions and services for pet food manufacturers; sustainable ingredients and services for fish feed manufacturers to develop solutions for fish and shrimp farms; and probiotics for food supplements and functional foods. The Scent & Care segment develops, produces, and sells fragrance ingredients and compositions, aroma molecules, cosmetic ingredients, and mint flavors, as well as specific application processes for such substances. This segment's products are used by manufacturers of perfumes, personal care and cosmetic products, cleaning products, detergents, air fresheners, and oral care products. Symrise AG was founded in 1874 and is headquartered in Holzminden, Germany.