Chemicals - Specialty
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NEU vs IOSP
Revenue, margins, valuation, and 5-year total return — side by side.
Chemicals - Specialty
NEU vs IOSP — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | ||
|---|---|---|
| Industry | Chemicals - Specialty | Chemicals - Specialty |
| Market Cap | $6.38B | $1.91B |
| Revenue (TTM) | $2.69B | $1.78B |
| Net Income (TTM) | $411M | $117M |
| Gross Margin | 31.3% | 27.7% |
| Operating Margin | 19.6% | 8.7% |
| Forward P/E | 15.3x | 15.5x |
| Total Debt | $962M | $90M |
| Cash & Equiv. | $78M | $293M |
NEU vs IOSP — 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% |
| Innospec Inc. (IOSP) | 100 | 99.4 | -0.6% |
Price return only. Dividends and distributions are not included.
Quick Verdict: NEU vs IOSP
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 growth exposure and long-term compounding.
- Rev growth -2.2%, EPS growth -7.8%, 3Y rev CAGR -0.5%
- 88.5% 10Y total return vs IOSP's 84.4%
- Lower volatility, beta 0.56, Low D/E 54.1%, current ratio 2.53x
IOSP is the clearest fit if your priority is income & stability and valuation efficiency.
- Dividend streak 12 yrs, beta 0.70, yield 2.2%
- PEG 0.48 vs NEU's 1.22
- Beta 0.70, yield 2.2%, current ratio 2.79x
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | -2.2% revenue growth vs IOSP's -3.7% | |
| Value | Lower P/E (15.3x vs 15.5x) | |
| Quality / Margins | 15.3% margin vs IOSP's 6.6% | |
| Stability / Safety | Beta 0.56 vs IOSP's 0.70 | |
| Dividends | 2.2% yield, 12-year raise streak, vs NEU's 1.7% | |
| Momentum (1Y) | +9.9% vs IOSP's -14.9% | |
| Efficiency (ROA) | 12.2% ROA vs IOSP's 6.5%, ROIC 16.0% vs 11.2% |
NEU vs IOSP — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
NEU vs IOSP — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
Income & Cash Flow (Last 12 Months)
NEU leads this category, winning 4 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
NEU is the larger business by revenue, generating $2.7B annually — 1.5x IOSP's $1.8B. NEU is the more profitable business, keeping 15.3% of every revenue dollar as net income compared to IOSP's 6.6%.
| Metric | ||
|---|---|---|
| RevenueTrailing 12 months | $2.7B | $1.8B |
| EBITDAEarnings before interest/tax | $652M | $198M |
| Net IncomeAfter-tax profit | $411M | $117M |
| Free Cash FlowCash after capex | $484M | $88M |
| Gross MarginGross profit ÷ Revenue | +31.3% | +27.7% |
| Operating MarginEBIT ÷ Revenue | +19.6% | +8.7% |
| Net MarginNet income ÷ Revenue | +15.3% | +6.6% |
| FCF MarginFCF ÷ Revenue | +18.0% | +4.9% |
| Rev. Growth (YoY)Latest quarter vs prior year | -4.5% | -2.4% |
| EPS Growth (YoY)Latest quarter vs prior year | -5.3% | +167.7% |
Valuation Metrics
IOSP leads this category, winning 4 of 6 comparable metrics.
Valuation Metrics
At 15.3x trailing earnings, NEU trades at a 7% valuation discount to IOSP's 16.4x P/E. Adjusting for growth (PEG ratio), IOSP offers better value at 0.51x vs NEU's 1.22x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | ||
|---|---|---|
| Market CapShares × price | $6.4B | $1.9B |
| Enterprise ValueMkt cap + debt − cash | $7.3B | $1.7B |
| Trailing P/EPrice ÷ TTM EPS | 15.28x | 16.41x |
| Forward P/EPrice ÷ next-FY EPS est. | — | 15.45x |
| PEG RatioP/E ÷ EPS growth rate | 1.22x | 0.51x |
| EV / EBITDAEnterprise value multiple | 10.91x | 8.29x |
| Price / SalesMarket cap ÷ Revenue | 2.34x | 1.07x |
| Price / BookPrice ÷ Book value/share | 3.58x | 1.44x |
| Price / FCFMarket cap ÷ FCF | 12.99x | 21.68x |
Profitability & Efficiency
Evenly matched — NEU and IOSP each lead in 4 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 $9 for IOSP. IOSP carries lower financial leverage with a 0.07x debt-to-equity ratio, signaling a more conservative balance sheet compared to NEU's 0.54x. On the Piotroski fundamental quality scale (0–9), IOSP scores 6/9 vs NEU's 5/9, reflecting solid financial health.
| Metric | ||
|---|---|---|
| ROE (TTM)Return on equity | +39.3% | +9.0% |
| ROA (TTM)Return on assets | +12.2% | +6.5% |
| ROICReturn on invested capital | +16.0% | +11.2% |
| ROCEReturn on capital employed | +18.7% | +11.0% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 6 |
| Debt / EquityFinancial leverage | 0.54x | 0.07x |
| Net DebtTotal debt minus cash | $884M | -$203M |
| Cash & Equiv.Liquid assets | $78M | $293M |
| Total DebtShort + long-term debt | $962M | $90M |
| Interest CoverageEBIT ÷ Interest expense | 14.71x | — |
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 $8,168 for IOSP. Over the past 12 months, NEU leads with a +9.9% total return vs IOSP's -14.9%. The 3-year compound annual growth rate (CAGR) favors NEU at 21.8% vs IOSP's -6.1% — a key indicator of consistent wealth creation.
| Metric | ||
|---|---|---|
| YTD ReturnYear-to-date | -0.8% | +0.5% |
| 1-Year ReturnPast 12 months | +9.9% | -14.9% |
| 3-Year ReturnCumulative with dividends | +80.8% | -17.3% |
| 5-Year ReturnCumulative with dividends | +106.1% | -18.3% |
| 10-Year ReturnCumulative with dividends | +88.5% | +84.4% |
| CAGR (3Y)Annualised 3-year return | +21.8% | -6.1% |
Risk & Volatility
Evenly matched — NEU and IOSP 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 IOSP's 0.70 beta. A beta below 1.0 means the stock typically moves less than the S&P 500.
| Metric | ||
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.56x | 0.70x |
| 52-Week HighHighest price in past year | $875.97 | $95.55 |
| 52-Week LowLowest price in past year | $580.03 | $65.58 |
| % of 52W HighCurrent price vs 52-week peak | +77.5% | +80.2% |
| RSI (14)Momentum oscillator 0–100 | 61.8 | 59.1 |
| Avg Volume (50D)Average daily shares traded | 129K | 221K |
Analyst Outlook
IOSP leads this category, winning 2 of 2 comparable metrics.
Analyst Outlook
Wall Street rates NEU as "Hold" and IOSP as "Hold". For income investors, IOSP offers the higher dividend yield at 2.21% vs NEU's 1.66%.
| Metric | ||
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Hold |
| Price TargetConsensus 12-month target | — | $115.00 |
| # AnalystsCovering analysts | 4 | 9 |
| Dividend YieldAnnual dividend ÷ price | +1.7% | +2.2% |
| Dividend StreakConsecutive years of raises | 7 | 12 |
| Dividend / ShareAnnual DPS | $11.29 | $1.70 |
| Buyback YieldShare repurchases ÷ mkt cap | +1.2% | 0.0% |
NEU leads in 2 of 6 categories (Income & Cash Flow, Total Returns). IOSP leads in 2 (Valuation Metrics, Analyst Outlook). 2 tied.
NEU vs IOSP: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is NEU or IOSP a better buy right now?
For growth investors, NewMarket Corporation (NEU) is the stronger pick with -2.
2% revenue growth year-over-year, versus -3. 7% for Innospec Inc. (IOSP). NewMarket Corporation (NEU) offers the better valuation at 15. 3x trailing P/E, making it the more compelling value choice. Analysts rate NewMarket Corporation (NEU) a "Hold" — based on 4 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 IOSP?
On trailing P/E, NewMarket Corporation (NEU) is the cheapest at 15.
3x versus Innospec Inc. at 16. 4x.
03Which is the better long-term investment — NEU or IOSP?
Over the past 5 years, NewMarket Corporation (NEU) delivered a total return of +106.
1%, compared to -18. 3% for Innospec Inc. (IOSP). Over 10 years, the gap is even starker: NEU returned +88. 5% versus IOSP's +84. 4%. 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 IOSP?
By beta (market sensitivity over 5 years), NewMarket Corporation (NEU) is the lower-risk stock at 0.
56β versus Innospec Inc. 's 0. 70β — meaning IOSP is approximately 24% more volatile than NEU relative to the S&P 500. On balance sheet safety, Innospec Inc. (IOSP) carries a lower debt/equity ratio of 7% versus 54% for NewMarket Corporation — giving it more financial flexibility in a downturn.
05Which is growing faster — NEU or IOSP?
By revenue growth (latest reported year), NewMarket Corporation (NEU) is pulling ahead at -2.
2% versus -3. 7% for Innospec Inc. (IOSP). On earnings-per-share growth, the picture is similar: Innospec Inc. grew EPS 228. 9% year-over-year, compared to -7. 8% for NewMarket Corporation. Over a 3-year CAGR, NEU leads at -0. 5% 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 IOSP?
NewMarket Corporation (NEU) is the more profitable company, earning 15.
4% net margin versus 6. 6% for Innospec 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 8. 8% for IOSP. At the gross margin level — before operating expenses — NEU leads at 31. 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 IOSP?
All stocks in this comparison pay dividends.
Innospec Inc. (IOSP) offers the highest yield at 2. 2%, versus 1. 7% for NewMarket Corporation (NEU).
08Is NEU or IOSP 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%, IOSP: +84. 4%), 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 IOSP?
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.
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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