Which Stock Will Rally: NewMarket or Sherwin-Williams?
Even as Sherwin-Williams surged 5.5% during the past Day, its peer NewMarket may be a better choice. Consistently evaluating alternatives is core to sound investment approach. NewMarket (NEU) stock offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Sherwin-Williams (SHW) stock, suggesting you may be better off investing in NEU
- NEU’s Last 12 Months revenue growth was 3.7%, vs. SHW’s 1.0%.
- In addition, its Last 3-Year Average revenue growth came in at 4.7%, ahead of SHW’s 2.4%.
- NEU leads on profitability over both periods – LTM margin of 21.8% and 3-year average of 18.2%.
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SHW develops, manufactures, and sells paints and coatings globally through three segments, serving markets across the Americas, Caribbean, Europe, Asia, and Australia. NEU produces lubricant and fuel additives for vehicle, industrial, and oil refining applications, enhancing performance across gasoline, diesel, biofuels, and other fuels.
Valuation & Performance Overview
| SHW | NEU | Preferred | |
|---|---|---|---|
| Valuation | |||
| P/EBIT Ratio | 23.7 | 11.8 | NEU |
| Revenue Growth | |||
| Last Quarter | 3.2% | 0.6% | SHW |
| Last 12 Months | 1.0% | 3.7% | NEU |
| Last 3 Year Average | 2.4% | 4.7% | NEU |
| Operating Margins | |||
| Last 12 Months | 15.8% | 21.8% | NEU |
| Last 3 Year Average | 15.8% | 18.2% | NEU |
| Momentum | |||
| Last 3 Year Return | 61.0% | 165.2% | NEU |
Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
See more revenue details: SHW Revenue Comparison | NEU Revenue Comparison
See more margin details: SHW Operating Income Comparison | NEU Operating Income Comparison
But do these numbers tell the full story? Read Buy or Sell NEU Stock to see if NewMarket’s edge holds up under the hood or if Sherwin-Williams still has cards to play (see Buy or Sell SHW Stock).
Historical Market Performance
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | Avg | Best | |
|---|---|---|---|---|---|---|---|---|---|
| Returns | |||||||||
| SHW Return | 27% | 45% | -32% | 33% | 10% | -0% | 81% | ||
| NEU Return | -16% | -12% | -7% | 79% | -1% | 45% | 75% | ||
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 17% | 110% | <=== | |
| Monthly Win Rates [3] | |||||||||
| SHW Win Rate | 50% | 67% | 33% | 50% | 58% | 56% | 52% | ||
| NEU Win Rate | 42% | 33% | 58% | 75% | 50% | 67% | 54% | ||
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 67% | 64% | <=== | |
| Max Drawdowns [4] | |||||||||
| SHW Max Drawdown | -32% | -10% | -42% | -12% | -6% | -8% | -18% | ||
| NEU Max Drawdown | -32% | -24% | -17% | 0% | -6% | -9% | -15% | ||
| S&P 500 Max Drawdown | -31% | -1% | -25% | -1% | -2% | -15% | -12% | <=== | |
[1] Cumulative total returns since the beginning of 2020
[2] 2025 data is for the year up to 10/28/2025 (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read NEU Dip Buyer Analyses and SHW Dip Buyer Analyses to see how these stocks have fallen and recovered in the past.