Contrasting REX American Resources (REX) & NewMarket (NEU)

REX American Resources (NYSE: REX) and NewMarket (NYSE:NEU) are both oils/energy companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Volatility & Risk

REX American Resources has a beta of 1.59, meaning that its share price is 59% more volatile than the S&P 500. Comparatively, NewMarket has a beta of 0.74, meaning that its share price is 26% less volatile than the S&P 500.

Earnings and Valuation

This table compares REX American Resources and NewMarket’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
REX American Resources $452.59 million 1.10 $39.70 million N/A N/A
NewMarket $2.20 billion 2.04 $190.50 million N/A N/A

NewMarket has higher revenue and earnings than REX American Resources.

Dividends

NewMarket pays an annual dividend of $7.00 per share and has a dividend yield of 1.8%. REX American Resources does not pay a dividend. NewMarket has raised its dividend for 9 consecutive years.

Analyst Ratings

This is a summary of recent ratings and recommmendations for REX American Resources and NewMarket, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
REX American Resources 0 0 0 0 N/A
NewMarket 0 0 0 0 N/A

Profitability

This table compares REX American Resources and NewMarket’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
REX American Resources 8.77% 6.18% 5.41%
NewMarket 8.34% 35.41% 12.79%

Insider and Institutional Ownership

88.9% of REX American Resources shares are owned by institutional investors. Comparatively, 55.7% of NewMarket shares are owned by institutional investors. 12.5% of REX American Resources shares are owned by company insiders. Comparatively, 16.9% of NewMarket shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

NewMarket beats REX American Resources on 9 of the 12 factors compared between the two stocks.

About REX American Resources

REX American Resources Corporation, together with its subsidiaries, produces and sells ethanol. It operates through two segments, Ethanol and By-Products, and Refined Coal. The company also offers dried distillers grains, modified distillers grains, and non-food grade corn oil. In addition, it provides dry distillers grains with solubles, which is used as a protein in animal feed; and produces, processes, and sells refined coal. The company was formerly known as REX Stores Corporation and changed its name to REX American Resources Corporation in 2010. REX American Resources Corporation was founded in 1980 and is headquartered in Dayton, Ohio.

About NewMarket

NewMarket Corporation, through its subsidiaries, engages in the petroleum additives businesses. It offers lubricant additives for use in various vehicle and industrial applications, such as engine oils, transmission fluids, off-road powertrain and hydraulic systems, gear oils, hydraulic oils, turbine oils, metalworking fluids, and in other applications where metal-to-metal moving parts are utilized; and engine oil, driveline, and industrial additives. The company 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 (OEMs), and individual customers. It has operations in the United States, Canada, Europe, the Asia Pacific, India, Latin America, and the Middle East. NewMarket Corporation was founded in 1887 and is headquartered in Richmond, Virginia.

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