Innospec (NASDAQ:IOSP) & Its Peers Financial Review

Innospec (NASDAQ: IOSP) is one of 51 publicly-traded companies in the “Specialty Chemicals” industry, but how does it contrast to its competitors? We will compare Innospec to related companies based on the strength of its dividends, earnings, risk, valuation, analyst recommendations, profitability and institutional ownership.

Profitability

This table compares Innospec and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Innospec 7.45% 15.05% 8.38%
Innospec Competitors -3.09% 2.16% 3.90%

Insider and Institutional Ownership

89.1% of Innospec shares are owned by institutional investors. Comparatively, 69.1% of shares of all “Specialty Chemicals” companies are owned by institutional investors. 2.0% of Innospec shares are owned by company insiders. Comparatively, 7.1% of shares of all “Specialty Chemicals” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations for Innospec and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Innospec 0 1 1 0 2.50
Innospec Competitors 167 1037 1303 24 2.47

Innospec currently has a consensus target price of $65.00, indicating a potential downside of 1.29%. As a group, “Specialty Chemicals” companies have a potential downside of 3.18%. Given Innospec’s stronger consensus rating and higher possible upside, equities analysts plainly believe Innospec is more favorable than its competitors.

Risk & Volatility

Innospec has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500. Comparatively, Innospec’s competitors have a beta of 1.45, meaning that their average stock price is 45% more volatile than the S&P 500.

Valuation & Earnings

This table compares Innospec and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Innospec $883.40 million $81.30 million 18.24
Innospec Competitors $2.06 billion $129.25 million 250.21

Innospec’s competitors have higher revenue and earnings than Innospec. Innospec is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Dividends

Innospec pays an annual dividend of $0.76 per share and has a dividend yield of 1.2%. Innospec pays out 21.1% of its earnings in the form of a dividend. As a group, “Specialty Chemicals” companies pay a dividend yield of 1.3% and pay out 26.9% of their earnings in the form of a dividend.

Summary

Innospec competitors beat Innospec on 8 of the 15 factors compared.

Innospec Company Profile

Innospec Inc. is a specialty chemicals company engaged in developing, manufacturing, blending, marketing and supplying of specialty chemicals for use as fuel additives and ingredients for personal care, home care, agrochemical, mining and other applications and oilfield chemicals. The Company operates through four business segments: Fuel Specialties, Performance Chemicals, Oilfield Services and Octane Additives. Its Fuel Specialties develops, manufactures, blends, markets and supplies various specialty chemical products that are used as additives for a range of fuels. Its Performance Chemicals provides technology-based solutions. Its Oilfield Services business supplies drilling, completion and production chemicals. Its Octane Additives business manufactures a fuel additive for use in automotive gasoline and provides services in respect of environmental remediation. Its customers include oil and gas exploration and production companies, fuel users, and oil refiners among others.

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