NewMarket vs Element Solutions

This page compares NewMarket and Element Solutions, outlining their business models, financial performance, and market context. It presents neutral, accessible information to help readers understand how each company operates and positions itself within the industry landscape. The comparison aims to illuminate differences without making recommendations. Educational content, not financial advice.

About The Companies

NewMarket (NEU)

NewMarket Corporation (NEU) is a US-listed holding company whose principal businesses include Valvoline (retail and professional automotive care and lubricants) and Afton Chemical (speciality petroleum additives). With a market capitalisation around $7.13 billion, NEU offers exposure to both consumer-facing automotive aftermarket services and more industrial speciality-chemicals markets. Revenue drivers include demand for vehicle maintenance and lubricants, global mobility trends, and margins in high-value additive products. Strengths can include diversified end-markets, established brands and recurring demand for maintenance products, but the business also faces cyclical exposure to vehicle miles travelled, commodity and raw-material price swings, and competitive pressure. Investors should note the company’s capital-allocation choices — including dividends and shareholder returns — and monitor execution on growth initiatives. This summary is for general educational purposes only and not personal financial advice; values can fall as well as rise and suitability will depend on your circumstances.

Element Solutions (ESI)

Element Solutions Inc (ESI) is a US-listed provider of speciality chemicals and application solutions used across industrial, electronics, automotive and consumer markets. The company supplies formulation, surface-treatment and process-chemistry products that help manufacturers with coating, plating, bonding and other critical production steps. With a market capitalisation around $6.30bn, ESI is positioned as a mid-cap specialist whose performance is linked to global manufacturing activity, technology cycles (notably electronics) and end-market demand. Growth drivers can include product innovation, geographic expansion and selective acquisitions, while risks include cyclicality in industrial demand, raw-material and energy costs, regulatory compliance and integration of acquisitions. Investors should weigh the company’s diversified end-markets and technical capabilities against those operational and market risks. This summary is for general education and is not personal investment advice; investors should assess suitability, do further research and consider seeking regulated advice.

Comparison Snapshot

Key Financial Metrics

NEU

Metric

ESI

$7.07B

Market Cap

$6.39B

N/A

Potential Profit

19.68%

N/A

Analyst Rating

Buy

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

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Which Baskets Do They Appear In?

Chemical Sector: Berkshire's $10B Acquisition Impact

Published: October 1, 2025

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Investment Analysis

NewMarket

NEU

Pros

NewMarket has demonstrated consistent earnings growth, with EPS increasing at an average annual rate of 16% over the past five years.
The company maintains a strong balance sheet, with low debt levels and robust cash flow generation from its core petroleum additives business.
NewMarket offers a reliable and growing dividend, recently increased to $3.00 per share, reflecting confidence in its long-term profitability.

Considerations

Net income for the first nine months of 2025 declined compared to the same period in 2024, indicating potential near-term profitability pressures.
The business is exposed to cyclical demand in the automotive and industrial sectors, which can impact sales during economic downturns.
Revenue growth has been modest, with only a 3.3% increase in 2024, suggesting limited expansion momentum in its core markets.

Element Solutions

ESI

Pros

Element Solutions has a diversified global footprint, with operations in the US, China, and other international markets, supporting revenue resilience.
The company maintains a healthy gross margin of over 42%, reflecting strong pricing power and efficient manufacturing in its specialty chemicals segments.
Element Solutions continues to invest in advanced electronics and share buybacks, positioning itself for growth in high-demand technology markets.

Considerations

Net profit margin is relatively low at around 9.6%, constrained by high operating expenses and competitive pressures in the specialty chemicals sector.
The company carries a significant debt load, with a debt-to-equity ratio above 60%, which could limit financial flexibility in a rising rate environment.
Earnings growth has been inconsistent, with past performance rated weak compared to industry peers, raising concerns about long-term profitability trends.

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About The Companies

Comparison Snapshot

Which Baskets Do They Appear In?

Chemical Sector: Berkshire's $10B Acquisition Impact

Which Baskets Do They Appear In?

Chemical Sector: Berkshire's $10B Acquisition Impact

Investment Analysis

NewMarket

Pros

Considerations

Element Solutions

Pros

Considerations

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Zero Commission

Trusted & Regulated

6% Interest on Cash

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Frequently asked questions

What is the main purpose of comparing two stocks on this page?

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What does a high debt-to-equity ratio imply for a stock’s risk profile?

Why is earnings per share (EPS) growth an important metric to compare?

How do gross margins influence the perceived quality of a company’s profitability?

What should I infer from a company’s dividend policy in a comparison like this?

How does revenue growth affect long-term investment considerations?

What does it mean that Element Solutions has a diversified global footprint?

How might cyclical demand impact NewMarket’s stock positioning?

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About The Companies

Comparison Snapshot