Financial Analysis: Symrise (OTCMKTS:SYIEY) vs. NewMarket (NYSE:NEU)

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

Dividends

Symrise pays an annual dividend of $0.18 per share and has a dividend yield of 0.9%. NewMarket pays an annual dividend of $12.00 per share and has a dividend yield of 1.6%. 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.

Volatility & Risk

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

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 hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Symrise and NewMarket, as reported by MarketBeat.com.

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

Profitability

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

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

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Symrise	$5.41 billion	2.07	$517.49 million	N/A	N/A
NewMarket	$2.79 billion	2.45	$462.41 million	$47.33	15.37

Symrise has higher revenue and earnings than NewMarket.

Summary

NewMarket beats Symrise on 8 of the 14 factors compared between the two stocks.

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.

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.