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

Volatility & Risk

NewMarket has a beta of 0.44, meaning that its stock price is 56% less volatile than the S&P 500. Comparatively, Tantech has a beta of -1.07, meaning that its stock price is 207% less volatile than the S&P 500.

Profitability

This table compares NewMarket and Tantech’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%
Tantech N/A N/A N/A

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for NewMarket and Tantech, as reported by MarketBeat.com.

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

NewMarket currently has a consensus target price of $420.00, indicating a potential downside of 5.81%. Given NewMarket’s higher possible upside, analysts plainly believe NewMarket is more favorable than Tantech.

Earnings & Valuation

This table compares NewMarket and Tantech’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
NewMarket $2.29 billion 2.18 $234.73 million $20.34 21.92
Tantech $29.56 million 1.43 $1.98 million N/A N/A

NewMarket has higher revenue and earnings than Tantech.

Institutional and Insider Ownership

54.2% of NewMarket shares are held by institutional investors. Comparatively, 2.1% of Tantech shares are held by institutional investors. 17.0% of NewMarket shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

NewMarket beats Tantech on 10 of the 10 factors compared between the two stocks.

About NewMarket

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.

About Tantech

Tantech Holdings Ltd. develops and manufactures bamboo-based charcoal products in the People's Republic of China and internationally. The company operates through three segments: Consumer Products, Trading, and Electric Vehicle. It produces pressed and formed charcoal briquettes for use in grills, incense burners, and other applications under the Algold brand. The company also offers Charcoal Doctor branded products, such as air purifiers and humidifiers, automotive accessories for air purification, underfloor humidity control products, pillows and mattresses, wardrobe deodorizers, mouse pads and wrist mats, refrigerator deodorants, charcoal toilet cleaner disks, liquid charcoal cleaners, shoe insoles, and decorative charcoal gifts. In addition, it provides bamboo vinegar, a liquid byproduct that is used in disinfectants, detergents, lotions, specialized soaps, toilet cleaners, and fertilizers, as well as in various agricultural applications. Further, the company develops, manufactures, and sells electric buses and specialty electric vehicles, such as electric logistics cars, brushless cleaning cars, electric cleaning cars, special emergency vehicles, and funeral cars; and solar cells, lithium-ion batteries, auto parts, and electric control systems. The company sells its products directly or indirectly through distributors for industrial energy applications; and household cooking, heating, purification, agricultural, and cleaning uses. It also exports its bamboo vinegar, bamboo charcoal and purification products. Tantech Holdings Ltd. was founded in 2001 and is headquartered in Lishui, the People's Republic of China.

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