Critical Review: NewMarket (NYSE:NEU) vs. Ascent Industries (NASDAQ:ACNT)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ascent Industries	-5.31%	-2.72%	-2.07%
NewMarket	15.80%	24.62%	12.51%

Volatility & Risk

Ascent Industries has a beta of 0.49, meaning that its stock price is 51% less volatile than the S&P 500. Comparatively, NewMarket has a beta of 0.55, meaning that its stock price is 45% less volatile than the S&P 500.

Insider & Institutional Ownership

26.1% of Ascent Industries shares are owned by institutional investors. Comparatively, 61.1% of NewMarket shares are owned by institutional investors. 7.5% of Ascent Industries shares are owned by company insiders. Comparatively, 8.6% of NewMarket shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings and target prices for Ascent Industries and NewMarket, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ascent Industries	1	0	0	0	1.00
NewMarket	0	0	1	0	3.00

Earnings and Valuation

This table compares Ascent Industries and NewMarket”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ascent Industries	$74.94 million	1.79	$870,000.00	($0.45)	-33.04
NewMarket	$2.74 billion	2.99	$418.75 million	$46.48	19.17

NewMarket has higher revenue and earnings than Ascent Industries. Ascent Industries is trading at a lower price-to-earnings ratio than NewMarket, indicating that it is currently the more affordable of the two stocks.

Summary

NewMarket beats Ascent Industries on 13 of the 13 factors compared between the two stocks.

About Ascent Industries

Ascent Industries Co. an industrials company, produces and distributes stainless steel pipe and tube and specialty chemicals in the United States and internationally. The company operates through two segments, Tubular Products and Specialty Chemicals. It manufactures welded pipes and tubes, primarily from stainless steel, duplex, and nickel alloys; and ornamental stainless steel tubes for automotive, commercial transportation, marine, food services, construction, furniture, healthcare, and other industries. The company also produces defoamers, surfactants, and lubricating agents for end users, including companies that supply agrochemical paper, metal working, coatings, water treatment, paint, mining, oil and gas, and janitorial and other applications. In addition, it provides contract manufacturing services, as well as operates as a multi-purpose plant to process various difficult to handle materials, including flammable solvents, viscous liquids, and granular solids. The company was formerly known as Synalloy Corporation and changed its name to Ascent Industries Co. in August 2022. Ascent Industries Co. was founded in 1945 and is based in Oak Brook, Illinois.

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.