Standard Lithium (NYSE:SLI – Get Free Report) and Innospec (NASDAQ:IOSP – Get Free Report) are both oils/energy companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, valuation, profitability, earnings and risk.
Dividends
Standard Lithium pays an annual dividend of $2.00 per share and has a dividend yield of 111.7%. Innospec pays an annual dividend of $1.58 per share and has a dividend yield of 1.3%. Standard Lithium pays out 339.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Innospec pays out 27.6% of its earnings in the form of a dividend.
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% |
Risk & Volatility
Analyst Ratings
This is a summary of current ratings and price targets for Standard Lithium and Innospec, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Standard Lithium | 0 | 0 | 2 | 0 | 3.00 |
| Innospec | 0 | 0 | 0 | 0 | 0.00 |
Standard Lithium currently has a consensus target price of $3.95, suggesting a potential upside of 120.67%. Given Standard Lithium’s stronger consensus rating and higher probable upside, analysts clearly believe Standard Lithium is more favorable than Innospec.
Insider and Institutional 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 insiders. Comparatively, 1.5% of Innospec shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Earnings and Valuation
This table compares Standard Lithium and Innospec”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Standard Lithium | N/A | N/A | $108.82 million | $0.59 | 3.03 |
| Innospec | $1.95 billion | 1.52 | $139.10 million | $5.73 | 20.70 |
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.
Summary
Innospec beats Standard Lithium on 9 of the 15 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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