Innospec (NASDAQ: IOSP) and JOHNSON MATTHEY/S (OTCMKTS:JMPLY) are both basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, valuation and risk.
Earnings & Valuation
This table compares Innospec and JOHNSON MATTHEY/S’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Innospec||$1.31 billion||1.49||$61.80 million||$4.66||17.09|
|JOHNSON MATTHEY/S||$18.73 billion||0.53||$395.35 million||$5.52||18.58|
Volatility & Risk
Innospec has a beta of 1.06, meaning that its share price is 6% more volatile than the S&P 500. Comparatively, JOHNSON MATTHEY/S has a beta of 1.43, meaning that its share price is 43% more volatile than the S&P 500.
This table compares Innospec and JOHNSON MATTHEY/S’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent ratings and price targets for Innospec and JOHNSON MATTHEY/S, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Innospec presently has a consensus target price of $65.00, indicating a potential downside of 18.39%. Given Innospec’s higher probable upside, equities analysts plainly believe Innospec is more favorable than JOHNSON MATTHEY/S.
Innospec pays an annual dividend of $1.76 per share and has a dividend yield of 2.2%. JOHNSON MATTHEY/S pays an annual dividend of $2.00 per share and has a dividend yield of 2.0%. Innospec pays out 37.8% of its earnings in the form of a dividend. JOHNSON MATTHEY/S pays out 36.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years.
Insider & Institutional Ownership
91.8% of Innospec shares are held by institutional investors. Comparatively, 0.0% of JOHNSON MATTHEY/S shares are held by institutional investors. 2.2% of Innospec shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Innospec beats JOHNSON MATTHEY/S on 8 of the 15 factors compared between the two stocks.
Innospec Inc. develops, manufactures, blends, markets, and supplies specialty chemicals for use as fuel additives, ingredients for personal care, home care, agrochemical, mining and other applications, and oilfield chemicals worldwide. It operates through four segments: Fuel Specialties, Performance Chemicals, Oilfield Services, and Octane Additives. The Fuel Specialties segment offers a range of specialty chemical products used as additives in various fuels. This segment's products are used in the operation of automotive, marine, and aviation engines; power station generators; and heating oil. The Performance Chemicals segment provides technology-based solutions for its customers' processes or products focused in the personal care, home care, agrochemical, and mining markets. The Oilfield Services segment develops and markets products to prevent loss of mud in drilling operations; chemical solutions for fracturing, stimulation, and completion operations; and products for oil and gas production, which enable flow assurance and asset integrity. The Octane Additives segment produces and sells tetra ethyl lead (TEL) for use in automotive gasoline. This segment is also involved in an environmental remediation business that manages the cleanup of redundant TEL plants. The company serves oil and gas exploration and production companies, oil refineries, fuel manufacturers and users, formulators of personal care and home care, agrochemical and mining formulations, and other chemical and industrial companies. The company was formerly known as Octel Corp. and changed its name to Innospec Inc. in January 2006. Innospec Inc. was founded in 1938 and is headquartered in Englewood, Colorado.
About JOHNSON MATTHEY/S
Johnson Matthey Plc operates as a specialty chemicals company in North America, Europe, China, rest of Asia, and internationally. It operates in five divisions: Emission Control Technologies, Process Technologies, Precious Metal Products, Fine Chemicals, and New Businesses. The Emission Control Technologies division manufactures catalysts, which control harmful emissions from cars and other light duty vehicles powered by various types of fuel, as well as from diesel powered trucks, buses, and non-road machinery. The Process Technologies division manufactures catalysts, additives, and absorbents, as well as licenses process technologies; and delivers services to the petrochemical, biochemical, syngas, oil refining, and gas processing industries. The Precious Metal Products division manages, distributes, refines, and recycles precious metals and other special material using precious metals or related materials, platinum group metal catalysts, and platinum group metal chemicals for automotive and chemical markets; and develops and manufactures functional coatings and inks. The Fine Chemicals division develops and manufactures active pharmaceutical ingredients for various treatments, including pain management and attention deficit hyperactivity disorders; and specialty chemical, chiral, and biocatalytic technologies and products, as well as provides custom pharmaceutical research, development, and manufacturing services. This division also offers catalyst technologies for pharmaceutical, agrochemical, flavor, and fragrance applications. The New Businesses division is involved in the research, development, and manufacture of battery materials; design and supply of battery systems; and development and manufacture of catalysts and components for fuel cell markets. The company was formerly known as Johnson & Cock and changed its name to Johnson Matthey Plc in 1851. Johnson Matthey Plc was founded in 1817 and is based in London, the United Kingdom.
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