Reviewing Valvoline (VVV) & Its Competitors

Valvoline (NYSE: VVV) is one of 52 public companies in the “Specialty Chemicals” industry, but how does it compare to its peers? We will compare Valvoline to related companies based on the strength of its earnings, valuation, dividends, institutional ownership, profitability, risk and analyst recommendations.

Analyst Ratings

This is a summary of current ratings and target prices for Valvoline and its peers, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Valvoline 0 6 5 0 2.45
Valvoline Competitors 255 1204 1314 33 2.40

Valvoline presently has a consensus price target of $25.73, suggesting a potential upside of 14.39%. As a group, “Specialty Chemicals” companies have a potential upside of 5.15%. Given Valvoline’s stronger consensus rating and higher possible upside, analysts clearly believe Valvoline is more favorable than its peers.

Profitability

This table compares Valvoline and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Valvoline 13.00% -106.06% 14.55%
Valvoline Competitors -2.31% 9.09% 4.11%

Institutional and Insider Ownership

92.3% of Valvoline shares are owned by institutional investors. Comparatively, 70.0% of shares of all “Specialty Chemicals” companies are owned by institutional investors. 0.1% of Valvoline shares are owned by insiders. Comparatively, 7.1% of shares of all “Specialty Chemicals” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

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

Gross Revenue EBITDA Price/Earnings Ratio
Valvoline $2.03 billion $520.00 million 17.43
Valvoline Competitors $1.95 billion $301.80 million 16.43

Valvoline has higher revenue and earnings than its peers. Valvoline is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Dividends

Valvoline pays an annual dividend of $0.20 per share and has a dividend yield of 0.9%. Valvoline pays out 15.5% of its earnings in the form of a dividend. As a group, “Specialty Chemicals” companies pay a dividend yield of 1.4% and pay out 27.1% of their earnings in the form of a dividend.

Summary

Valvoline beats its peers on 9 of the 14 factors compared.

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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