Pledge Petroleum (OTCMKTS:PROP) and NewMarket (NYSE:NEU) are both oils/energy companies, but which is the superior business? We will compare the two companies based on the strength of their analyst recommendations, valuation, dividends, institutional ownership, profitability, earnings and risk.
Risk & Volatility
Pledge Petroleum has a beta of -22.48, meaning that its share price is 2,348% less volatile than the S&P 500. Comparatively, NewMarket has a beta of 0.44, meaning that its share price is 56% less volatile than the S&P 500.
NewMarket pays an annual dividend of $7.60 per share and has a dividend yield of 1.6%. Pledge Petroleum does not pay a dividend. NewMarket pays out 37.4% of its earnings in the form of a dividend. NewMarket has increased its dividend for 10 consecutive years.
Valuation and Earnings
This table compares Pledge Petroleum and NewMarket’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|NewMarket||$2.29 billion||2.25||$234.73 million||$20.34||22.67|
NewMarket has higher revenue and earnings than Pledge Petroleum.
Institutional & Insider Ownership
0.0% of Pledge Petroleum shares are owned by institutional investors. Comparatively, 55.5% of NewMarket shares are owned by institutional investors. 17.0% of NewMarket shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This table compares Pledge Petroleum and NewMarket’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings and recommmendations for Pledge Petroleum and NewMarket, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
NewMarket has a consensus target price of $420.00, indicating a potential downside of 8.91%. Given NewMarket’s higher probable upside, analysts clearly believe NewMarket is more favorable than Pledge Petroleum.
NewMarket beats Pledge Petroleum on 11 of the 13 factors compared between the two stocks.
Pledge Petroleum Company Profile
Pledge Petroleum Corp. does not have significant operations. Previously, it focused on the acquisition of producing oil fields. The company was formerly known as Propell Technologies Group, Inc. and changed its name to Pledge Petroleum Corp. in February 2017. Pledge Petroleum Corp. is based in Houston, Texas.
NewMarket Company Profile
NewMarket Corporation, through its subsidiaries, engages in the petroleum additives businesses. 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, metalworking fluids, and other applications where metal-to-metal moving parts are utilized; and engine oil, driveline, and industrial additives. 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. The company has operations in the United States, Europe, the Asia Pacific, India, Latin America, Canada, and the Middle East. NewMarket Corporation was founded in 1887 and is headquartered in Richmond, Virginia.
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