Valvoline (NYSE:VVV) and New America Energy (OTCMKTS:NECA) are both basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, valuation, analyst recommendations, profitability and earnings.

Profitability

This table compares Valvoline and New America Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Valvoline 9.97% -80.99% 13.29%
New America Energy N/A N/A N/A

Analyst Recommendations

This is a summary of recent recommendations for Valvoline and New America Energy, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Valvoline 2 4 4 0 2.20
New America Energy 0 0 0 0 N/A

Valvoline currently has a consensus price target of $22.88, indicating a potential upside of 23.92%. Given Valvoline’s higher possible upside, equities analysts clearly believe Valvoline is more favorable than New America Energy.

Dividends

Valvoline pays an annual dividend of $0.42 per share and has a dividend yield of 2.3%. New America Energy does not pay a dividend. Valvoline pays out 32.6% of its earnings in the form of a dividend.

Institutional & Insider Ownership

99.8% of Valvoline shares are owned by institutional investors. 0.5% of Valvoline shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Valvoline and New America Energy’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Valvoline $2.29 billion 1.52 $166.00 million $1.29 14.31
New America Energy N/A N/A N/A N/A N/A

Valvoline has higher revenue and earnings than New America Energy.

Summary

Valvoline beats New America Energy on 8 of the 10 factors compared between the two stocks.

Valvoline Company Profile

Valvoline Inc. manufactures and markets engine and automotive maintenance products and services. It operates through three segments: Core North America, Quick Lubes, and International. The company offers lubricants for passenger car, light duty, and heavy duty; antifreeze/coolants for original equipment manufacturers; functional and maintenance chemicals, such as brake fluids and power steering fluids, as well as specialty coatings for automotive and industrial applications comprising rust prevention and sound absorption; and oil and air filters for light-duty vehicles. It also provides windshield wiper blades, light bulbs, serpentine belts, and drain plugs. In addition, the company operates Valvoline instant oil change service centers. As of December 18, 2018, it operated approximately 1,170 Valvoline Instant Oil Change SM centers in the United States; and approximately 100 Great Canadian Oil Change locations in Canada. The company also serves car dealers, general repair shops, and third-party quick lube locations, as well as through a network of approximately 200 distributors. It has operations in North America, Europe, the Asia Pacific, the Middle East, Latin America, Africa, and other countries. Valvoline Inc. was founded in 1866 and is headquartered in Lexington, Kentucky.

New America Energy Company Profile

New America Energy Corp., through its subsidiary, Title King, LLC, provides short-term high interest loans to consumers through the collateral use of car and truck titles. It offers automobile title loans, as well as other forms of consumer loans, check cashing, money orders, and money transfers. The company was formerly known as Atheron Inc. and changed its name to New America Energy Corp. in November 2010. New America Energy Corp. was founded in 2006 and is headquartered in Chamblee, Georgia.

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