Chemicals - Specialty
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NEU vs ECL
Revenue, margins, valuation, and 5-year total return — side by side.
Chemicals - Specialty
NEU vs ECL — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Chemicals - Specialty | Chemicals - Specialty |
| Market Cap | $6.38B | $72.46B |
| Revenue (TTM) | $2.69B | $16.08B |
| Net Income (TTM) | $411M | $2.08B |
| Gross Margin | 31.3% | 44.5% |
| Operating Margin | 19.6% | 17.7% |
| Forward P/E | 15.3x | 30.6x |
| Total Debt | $962M | $9.43B |
| Cash & Equiv. | $78M | $646M |
NEU vs ECL — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| NewMarket Corporati… (NEU) | 100 | 155.7 | +55.7% |
| Ecolab Inc. (ECL) | 100 | 120.7 | +20.7% |
Price return only. Dividends and distributions are not included.
Quick Verdict: NEU vs ECL
Each card shows where this stock fits in a portfolio — not just who wins on paper.
NEU carries the broadest edge in this set and is the clearest fit for income & stability and sleep-well-at-night.
- Dividend streak 7 yrs, beta 0.56, yield 1.7%
- Lower volatility, beta 0.56, Low D/E 54.1%, current ratio 2.53x
- Beta 0.56, yield 1.7%, current ratio 2.53x
ECL is the clearest fit if your priority is growth exposure and long-term compounding.
- Rev growth 2.2%, EPS growth -1.2%, 3Y rev CAGR 4.3%
- 139.5% 10Y total return vs NEU's 88.5%
- 2.2% revenue growth vs NEU's -2.2%
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | 2.2% revenue growth vs NEU's -2.2% | |
| Value | Lower P/E (15.3x vs 30.6x) | |
| Quality / Margins | 15.3% margin vs ECL's 12.9% | |
| Stability / Safety | Beta 0.56 vs ECL's 0.63, lower leverage | |
| Dividends | 1.7% yield, 7-year raise streak, vs ECL's 1.0% | |
| Momentum (1Y) | +9.9% vs ECL's +2.0% | |
| Efficiency (ROA) | 12.2% ROA vs ECL's 8.8%, ROIC 16.0% vs 12.7% |
NEU vs ECL — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
NEU vs ECL — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
Income & Cash Flow (Last 12 Months)
Evenly matched — NEU and ECL each lead in 3 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
ECL is the larger business by revenue, generating $16.1B annually — 6.0x NEU's $2.7B. Profitability is closely matched — net margins range from 15.3% (NEU) to 12.9% (ECL). On growth, ECL holds the edge at +4.8% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $2.7B | $16.1B |
| EBITDAEarnings before interest/tax | $652M | $3.5B |
| Net IncomeAfter-tax profit | $411M | $2.1B |
| Free Cash FlowCash after capex | $484M | $1.9B |
| Gross MarginGross profit ÷ Revenue | +31.3% | +44.5% |
| Operating MarginEBIT ÷ Revenue | +19.6% | +17.7% |
| Net MarginNet income ÷ Revenue | +15.3% | +12.9% |
| FCF MarginFCF ÷ Revenue | +18.0% | +11.8% |
| Rev. Growth (YoY)Latest quarter vs prior year | -4.5% | +4.8% |
| EPS Growth (YoY)Latest quarter vs prior year | -5.3% | +19.3% |
Valuation Metrics
NEU leads this category, winning 5 of 5 comparable metrics.
Valuation Metrics
At 15.3x trailing earnings, NEU trades at a 57% valuation discount to ECL's 35.2x P/E. On an enterprise value basis, NEU's 10.9x EV/EBITDA is more attractive than ECL's 22.7x.
| Metric | ||
|---|---|---|
| Market CapShares × price | $6.4B | $72.5B |
| Enterprise ValueMkt cap + debt − cash | $7.3B | $81.2B |
| Trailing P/EPrice ÷ TTM EPS | 15.28x | 35.24x |
| Forward P/EPrice ÷ next-FY EPS est. | — | 30.64x |
| PEG RatioP/E ÷ EPS growth rate | 1.22x | — |
| EV / EBITDAEnterprise value multiple | 10.91x | 22.66x |
| Price / SalesMarket cap ÷ Revenue | 2.34x | 4.51x |
| Price / BookPrice ÷ Book value/share | 3.58x | 7.46x |
| Price / FCFMarket cap ÷ FCF | 12.99x | 38.05x |
Profitability & Efficiency
NEU leads this category, winning 8 of 8 comparable metrics.
Profitability & Efficiency
NEU delivers a 39.3% return on equity — every $100 of shareholder capital generates $39 in annual profit, vs $22 for ECL. NEU carries lower financial leverage with a 0.54x debt-to-equity ratio, signaling a more conservative balance sheet compared to ECL's 0.96x.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | +39.3% | +22.0% |
| ROA (TTM)Return on assets | +12.2% | +8.8% |
| ROICReturn on invested capital | +16.0% | +12.7% |
| ROCEReturn on capital employed | +18.7% | +15.8% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 5 |
| Debt / EquityFinancial leverage | 0.54x | 0.96x |
| Net DebtTotal debt minus cash | $884M | $8.8B |
| Cash & Equiv.Liquid assets | $78M | $646M |
| Total DebtShort + long-term debt | $962M | $9.4B |
| Interest CoverageEBIT ÷ Interest expense | 14.71x | 9.82x |
Total Returns (Dividends Reinvested)
NEU leads this category, winning 5 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in NEU five years ago would be worth $20,613 today (with dividends reinvested), compared to $11,734 for ECL. Over the past 12 months, NEU leads with a +9.9% total return vs ECL's +2.0%. The 3-year compound annual growth rate (CAGR) favors NEU at 21.8% vs ECL's 15.2% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | -0.8% | -2.0% |
| 1-Year ReturnPast 12 months | +9.9% | +2.0% |
| 3-Year ReturnCumulative with dividends | +80.8% | +52.7% |
| 5-Year ReturnCumulative with dividends | +106.1% | +17.3% |
| 10-Year ReturnCumulative with dividends | +88.5% | +139.5% |
| CAGR (3Y)Annualised 3-year return | +21.8% | +15.2% |
Risk & Volatility
Evenly matched — NEU and ECL each lead in 1 of 2 comparable metrics.
Risk & Volatility
NEU is the less volatile stock with a 0.56 beta — it tends to amplify market swings less than ECL's 0.63 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. ECL currently trades 83.0% from its 52-week high vs NEU's 77.5% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | ||
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.56x | 0.63x |
| 52-Week HighHighest price in past year | $875.97 | $309.27 |
| 52-Week LowLowest price in past year | $580.03 | $249.04 |
| % of 52W HighCurrent price vs 52-week peak | +77.5% | +83.0% |
| RSI (14)Momentum oscillator 0–100 | 61.8 | 46.0 |
| Avg Volume (50D)Average daily shares traded | 129K | 1.4M |
Analyst Outlook
Evenly matched — NEU and ECL each lead in 1 of 2 comparable metrics.
Analyst Outlook
Wall Street rates NEU as "Hold" and ECL as "Buy". For income investors, NEU offers the higher dividend yield at 1.66% vs ECL's 1.03%.
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | — | $327.11 |
| # AnalystsCovering analysts | 4 | 37 |
| Dividend YieldAnnual dividend ÷ price | +1.7% | +1.0% |
| Dividend StreakConsecutive years of raises | 7 | 12 |
| Dividend / ShareAnnual DPS | $11.29 | $2.64 |
| Buyback YieldShare repurchases ÷ mkt cap | +1.2% | +1.1% |
NEU leads in 3 of 6 categories — strongest in Valuation Metrics and Profitability & Efficiency. 3 categories are tied.
NEU vs ECL: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is NEU or ECL a better buy right now?
For growth investors, Ecolab Inc.
(ECL) is the stronger pick with 2. 2% revenue growth year-over-year, versus -2. 2% for NewMarket Corporation (NEU). NewMarket Corporation (NEU) offers the better valuation at 15. 3x trailing P/E, making it the more compelling value choice. Analysts rate Ecolab Inc. (ECL) a "Buy" — based on 37 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — NEU or ECL?
On trailing P/E, NewMarket Corporation (NEU) is the cheapest at 15.
3x versus Ecolab Inc. at 35. 2x.
03Which is the better long-term investment — NEU or ECL?
Over the past 5 years, NewMarket Corporation (NEU) delivered a total return of +106.
1%, compared to +17. 3% for Ecolab Inc. (ECL). Over 10 years, the gap is even starker: ECL returned +139. 5% versus NEU's +88. 5%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — NEU or ECL?
By beta (market sensitivity over 5 years), NewMarket Corporation (NEU) is the lower-risk stock at 0.
56β versus Ecolab Inc. 's 0. 63β — meaning ECL is approximately 11% more volatile than NEU relative to the S&P 500. On balance sheet safety, NewMarket Corporation (NEU) carries a lower debt/equity ratio of 54% versus 96% for Ecolab Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — NEU or ECL?
By revenue growth (latest reported year), Ecolab Inc.
(ECL) is pulling ahead at 2. 2% versus -2. 2% for NewMarket Corporation (NEU). On earnings-per-share growth, the picture is similar: Ecolab Inc. grew EPS -1. 2% year-over-year, compared to -7. 8% for NewMarket Corporation. Over a 3-year CAGR, ECL leads at 4. 3% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — NEU or ECL?
NewMarket Corporation (NEU) is the more profitable company, earning 15.
4% net margin versus 12. 9% for Ecolab Inc. — meaning it keeps 15. 4% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: NEU leads at 20. 0% versus 18. 1% for ECL. At the gross margin level — before operating expenses — ECL leads at 44. 5%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
07Which pays a better dividend — NEU or ECL?
All stocks in this comparison pay dividends.
NewMarket Corporation (NEU) offers the highest yield at 1. 7%, versus 1. 0% for Ecolab Inc. (ECL).
08Is NEU or ECL better for a retirement portfolio?
For long-horizon retirement investors, NewMarket Corporation (NEU) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.
56), 1. 7% yield). Both have compounded well over 10 years (NEU: +88. 5%, ECL: +139. 5%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between NEU and ECL?
Both stocks operate in the Basic Materials sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
In terms of investment character: NEU is a small-cap deep-value stock; ECL is a mid-cap quality compounder stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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