NewMarket vs CMC
This page compares NewMarket and CMC, examining business models, financial performance, and market context to help readers understand differences and similarities. The discussion remains neutral and accessible for a broad audience. Educational content, not financial advice.
This page compares NewMarket and CMC, examining business models, financial performance, and market context to help readers understand differences and similarities. The discussion remains neutral and a...
Which Baskets Do They Appear In?
Chemical Sector: Berkshire's $10B Acquisition Impact
Berkshire Hathaway's potential $10 billion acquisition of Occidental's OxyChem unit signals a major investment in the industrial chemical sector. This move could create ripple effects, presenting opportunities for other chemical manufacturers who stand to gain from shifts in the market.
Published: October 1, 2025
Explore BasketWhich Baskets Do They Appear In?
Chemical Sector: Berkshire's $10B Acquisition Impact
Berkshire Hathaway's potential $10 billion acquisition of Occidental's OxyChem unit signals a major investment in the industrial chemical sector. This move could create ripple effects, presenting opportunities for other chemical manufacturers who stand to gain from shifts in the market.
Published: October 1, 2025
Explore BasketInvestment Analysis
NewMarket
NEU
Pros
- NewMarket Corporation has demonstrated steady revenue growth, with a 3.27% increase to $2.79 billion in 2024 compared to the prior year.
- The company maintains strong profitability, reporting net income growth of nearly 19% in 2024 to $460.76 million.
- NewMarket offers a substantial dividend yield of approximately 1.45%, recently raising dividends to $3.00 per share.
Considerations
- Net income for the first nine months of 2025 showed a slight decline compared to the prior year, indicating some earnings pressure.
- The company operates in the petroleum additives industry, which can be cyclically affected by oil price volatility and industrial demand fluctuations.
- Limited analyst coverage and lack of forward P/E ratio data may reflect lower market visibility or uncertainty about future growth prospects.
CMC
CMC
Pros
- Commercial Metals Company benefits from diversified international operations across the US, Poland, and China, supporting its steel and metal recycling business.
- The company has a strong liquidity position with a current ratio of 2.82 and quick ratio of 1.66, indicating solid short-term financial health.
- Analyst consensus is generally positive with a majority 'Buy' rating and a modest upside price target around 10% over the next 12 months.
Considerations
- The company’s net income margin is low relative to revenue, with net income of $84.66 million on $7.8 billion revenue, reflecting thin profitability.
- CMC’s stock trades at a very high P/E ratio of 82.26 currently, which may indicate overvaluation or market concerns about earnings sustainability.
- Steel industry cyclicality and exposure to global commodity price volatility pose ongoing risks to stable earnings and cash flow.
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