NewMarket vs Aurora Which Is a Smarter Choice?

NewMarket Corporation and Aurora Cannabis Inc. are two prominent players in the stock market, each with its unique characteristics and potential for growth. NewMarket, a specialty chemical manufacturer, has a strong track record of consistent performance and long-term value creation for its shareholders. On the other hand, Aurora Cannabis, a leading producer of medical and recreational cannabis products, operates in a rapidly growing and evolving industry with significant opportunities for expansion. Both stocks offer investors distinct investment opportunities based on their respective industries and growth potential.

NewMarket or Aurora?

When comparing NewMarket and Aurora, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between NewMarket and Aurora.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. NewMarket has a dividend yield of 1.81%, while Aurora has a dividend yield of 6.17%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. NewMarket reports a 5-year dividend growth of 4.80% year and a payout ratio of 21.65%. On the other hand, Aurora reports a 5-year dividend growth of -4.77% year and a payout ratio of 102.72%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with NewMarket P/E ratio at 11.91 and Aurora's P/E ratio at 14.91. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. NewMarket P/B ratio is 3.77 while Aurora's P/B ratio is 2.00.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, NewMarket has seen a 5-year revenue growth of 0.42%, while Aurora's is -0.20%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with NewMarket's ROE at 35.79% and Aurora's ROE at 14.00%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $534.26 for NewMarket and NT$66.30 for Aurora. Over the past year, NewMarket's prices ranged from $494.04 to $650.00, with a yearly change of 31.57%. Aurora's prices fluctuated between NT$66.20 and NT$77.00, with a yearly change of 16.31%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.