Sigma-Aldrich Corporation (NASDAQ: SIAL) and Valvoline (NYSE:VVV) are both specialty chemicals – nec companies, but which is the better stock? We will compare the two businesses based on the strength of their valuation, dividends, risk, profitability, analyst recommendations, earnings and institutional ownership.

Valuation and Earnings

This table compares Sigma-Aldrich Corporation and Valvoline’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
Sigma-Aldrich Corporation N/A N/A N/A $4.08 N/A
Valvoline $2.08 billion 2.26 $304.00 million $1.49 15.61

Valvoline has higher revenue and earnings than Sigma-Aldrich Corporation. Sigma-Aldrich Corporation is trading at a lower price-to-earnings ratio than Valvoline, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent recommendations for Sigma-Aldrich Corporation and Valvoline, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Sigma-Aldrich Corporation 0 0 0 0 N/A
Valvoline 0 4 3 0 2.43

Valvoline has a consensus target price of $25.14, suggesting a potential upside of 8.09%.

Institutional and Insider Ownership

92.8% of Valvoline shares are held by institutional investors. 0.1% of Valvoline shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Sigma-Aldrich Corporation and Valvoline’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Sigma-Aldrich Corporation 16.22% 13.72% 10.47%
Valvoline 14.59% -137.91% 14.86%

Dividends

Valvoline pays an annual dividend of $0.20 per share and has a dividend yield of 0.9%. Sigma-Aldrich Corporation does not pay a dividend. Valvoline pays out 13.4% of its earnings in the form of a dividend. Sigma-Aldrich Corporation has increased its dividend for 41 consecutive years.

Summary

Valvoline beats Sigma-Aldrich Corporation on 6 of the 11 factors compared between the two stocks.

Sigma-Aldrich Corporation Company Profile

Sigma-Aldrich Corporation is a life science and high technology company. The Company develops, manufactures, purchases and distributes a range of biochemical and organic chemical products, kits and services that are used in scientific research. It manufactures and distributes around 250,000 chemicals, biochemical and other essential products and approximately 46,000 equipment products. Its business unit structure is aligned into three business units: Research, Applied and SAFC Commercial. Its brands include Sigma-Aldrich, Sigma, Aldrich, Fluka, Riedel-de Haen, Supelco, SAFC, SAFC Biosciences, SAFC Hitech, Genosys, Proligo, Pharmorphix, Cerilliant, Vetec, BioReliance and Cell Marque. It offers its products and services to research and applied labs, pharmaceutical companies, universities, commercial laboratories, industrial companies, biotechnology companies and non-profit organizations, among others. It operates in around 37 countries and sells into approximately 160 countries.

Valvoline Company Profile

Valvoline Inc. (Valvoline) is engaged in the production and distribution of automotive, commercial and industrial lubricants, and automotive chemicals. The Company operates through three segments: Core North America, Quick Lubes and International. The Core North America segment sells Valvoline, and other branded and private label products in the United States and Canada to both consumers performing their own automotive maintenance, referred to as Do-It-Yourself (DIY) consumers, as well as, to installer customers using Valvoline products to service vehicles owned by Do-It-For-Me (DIFM) consumers. Its Quick Lubes segment services the passenger car and light truck quick lube market through platforms, including its franchised Valvoline Instant Oil Change (VIOC) stores and Express Care. Its International segment sells Valvoline and other branded products through its affiliates, joint ventures, licensees and independent distributors. Its products include All Climate, DuraBlend and MaxLife.

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