Standard Lithium (NYSE:SLI – Get Free Report) and Innospec (NASDAQ:IOSP – Get Free Report) are both oils/energy companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, dividends, profitability, institutional ownership, risk, analyst recommendations and valuation.
Institutional & Insider Ownership
16.8% of Standard Lithium shares are held by institutional investors. Comparatively, 96.6% of Innospec shares are held by institutional investors. 3.7% of Standard Lithium shares are held by company insiders. Comparatively, 1.5% of Innospec shares are held 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.
Profitability
This table compares Standard Lithium and Innospec’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Standard Lithium | N/A | -11.52% | -10.25% |
Innospec | 7.68% | 13.33% | 9.18% |
Valuation and Earnings
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Standard Lithium | N/A | N/A | $108.82 million | $0.59 | 2.81 |
Innospec | $1.95 billion | 1.51 | $139.10 million | $5.73 | 20.65 |
Innospec has higher revenue and earnings than Standard Lithium. Standard Lithium is trading at a lower price-to-earnings ratio than Innospec, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings and target prices for Standard Lithium and Innospec, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Standard Lithium | 0 | 0 | 1 | 0 | 3.00 |
Innospec | 0 | 0 | 0 | 0 | 0.00 |
Standard Lithium presently has a consensus target price of $3.50, suggesting a potential upside of 110.84%. Given Standard Lithium’s stronger consensus rating and higher probable upside, analysts plainly believe Standard Lithium is more favorable than Innospec.
Volatility & Risk
Standard Lithium has a beta of 1.79, meaning that its share price is 79% more volatile than the S&P 500. Comparatively, Innospec has a beta of 1.08, meaning that its share price is 8% more volatile than the S&P 500.
Summary
Innospec beats Standard Lithium on 8 of the 13 factors compared between the two stocks.
About Standard Lithium
Standard Lithium Ltd. explores for, develops, and processes lithium brine properties in the United States. Its flagship project is the Lanxess project with area of approximately 150,000 acres located in southern Arkansas. The company was formerly known as Patriot Petroleum Corp. and changed its name to Standard Lithium Ltd. in December 2016. Standard Lithium Ltd. was incorporated in 1998 and is headquartered in Vancouver, Canada.
About Innospec
Innospec Inc. develops, manufactures, blends, markets, and supplies specialty chemicals in the United States, rest of North America, the United Kingdom, rest of Europe, and internationally. The company's Fuel Specialties segment offers a range of specialty chemical products that are used as additives in additives in diesel, jet, marine, fuel oil and other fuels. This segment's products are used in the operation of commercial trucking, marine and aviation engines, power station generators, heating oil, and other industrial machinery applications. Its Performance Chemicals segment provides technology-based solutions for its customers' processes or products that focuses on the personal care, home care, agrochemical, construction, mining, and other industrial markets. The company's Oilfield Services segment develops and markets chemical solutions for drilling, completion, fracturing, stimulation, and completion operations; and products for oil and gas production. It sells its products primarily to oil and gas exploration and production companies, oil refineries, fuel manufacturers and users, personal care and home care companies, formulators of agrochemical, and other chemical and industrial companies. The company was formerly known as Octel Corp. and changed its name to Innospec Inc. in January 2006. Innospec Inc. was founded in 1938 and is headquartered in Englewood, Colorado.
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