Givaudan (OTCMKTS:GVDNY) and Air Products and Chemicals (NYSE:APD) Critical Analysis

Givaudan (OTCMKTS:GVDNY) and Air Products and Chemicals (NYSE:APD) are both large-cap materials companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, institutional ownership, risk, dividends, analyst recommendations, profitability and earnings.

Earnings and Valuation

This table compares Givaudan and Air Products and Chemicals”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Givaudan	$9.02 billion	4.09	$1.29 billion	N/A	N/A
Air Products and Chemicals	$12.04 billion	5.60	-$394.50 million	($0.22)	-1,376.77

Givaudan has higher earnings, but lower revenue than Air Products and Chemicals.

Analyst Ratings

This is a summary of current recommendations for Givaudan and Air Products and Chemicals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Givaudan	1	5	3	0	2.22
Air Products and Chemicals	0	6	10	1	2.71

Air Products and Chemicals has a consensus target price of $332.76, suggesting a potential upside of 9.86%. Given Air Products and Chemicals’ stronger consensus rating and higher probable upside, analysts clearly believe Air Products and Chemicals is more favorable than Givaudan.

Dividends

Givaudan pays an annual dividend of $1.12 per share and has a dividend yield of 1.4%. Air Products and Chemicals pays an annual dividend of $7.24 per share and has a dividend yield of 2.4%. Air Products and Chemicals pays out -3,290.9% of its earnings in the form of a dividend. Air Products and Chemicals has raised its dividend for 43 consecutive years. Air Products and Chemicals is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

Givaudan has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500. Comparatively, Air Products and Chemicals has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500.

Profitability

This table compares Givaudan and Air Products and Chemicals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Givaudan	N/A	N/A	N/A
Air Products and Chemicals	-0.38%	16.87%	7.18%

Insider & Institutional Ownership

0.0% of Givaudan shares are owned by institutional investors. Comparatively, 81.7% of Air Products and Chemicals shares are owned by institutional investors. 1.9% of Air Products and Chemicals shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

Air Products and Chemicals beats Givaudan on 13 of the 16 factors compared between the two stocks.

About Givaudan

Givaudan SA manufactures, supplies, and sells fragrance, beauty, taste, and wellbeing products to the consumer goods industry. The company operates through divisions, Fragrance & Beauty, and Taste & Wellbeing. The Fragrance & Beauty division offers fine fragrances; consumer products, such as personal, home, fabric, and oral care; fragrance ingredients; and active beauty products. The Taste & Wellbeing division provides beverages, such as fizzy drinks, bottled waters, ready-to-drink juices, alcoholic beverages, and others; dairy and cheese products, including dairy drinks, yoghurt, ice cream, chilled desserts, cream cheese, and spreads; snacks; givaudan flavour ingredients; savory, and supplements and nutraceutical products; and biscuits, crackers, and cereals, as well as confectionery products, such as chewing gums, chocolates, and sweets. It operates in Switzerland, Europe, Africa, the Middle East, North America, Latin America, and the Asia Pacific. Givaudan SA was founded in 1796 and is headquartered in Vernier, Switzerland.

About Air Products and Chemicals

Air Products and Chemicals, Inc. provides atmospheric gases, process and specialty gases, equipment, and related services in the Americas, Asia, Europe, the Middle East, India, and internationally. The company produces atmospheric gases, including oxygen, nitrogen, and argon; process gases, such as hydrogen, helium, carbon dioxide, carbon monoxide, and syngas; and specialty gases for customers in various industries, including refining, chemical, manufacturing, electronics, energy production, medical, food, and metals. It also designs and manufactures equipment for air separation, hydrocarbon recovery and purification, natural gas liquefaction, and liquid helium and liquid hydrogen transport and storage. The company was founded in 1940 and is headquartered in Allentown, Pennsylvania.