Air Products and Chemicals (NYSE:APD) vs. H. B. Fuller (NYSE:FUL) Head-To-Head Review

H. B. Fuller (NYSE:FUL) and Air Products and Chemicals (NYSE:APD) are both materials companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, dividends, valuation, earnings, risk, analyst recommendations and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
H. B. Fuller	5.56%	12.65%	4.97%
Air Products and Chemicals	-0.38%	16.87%	7.18%

Institutional and Insider Ownership

95.9% of H. B. Fuller shares are owned by institutional investors. Comparatively, 81.7% of Air Products and Chemicals shares are owned by institutional investors. 1.8% of H. B. Fuller shares are owned by insiders. Comparatively, 1.9% of Air Products and Chemicals shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Dividends

H. B. Fuller pays an annual dividend of $0.98 per share and has a dividend yield of 2.0%. Air Products and Chemicals pays an annual dividend of $7.24 per share and has a dividend yield of 2.6%. H. B. Fuller pays out 27.3% of its earnings in the form of a dividend. Air Products and Chemicals pays out -3,290.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. H. B. Fuller has increased its dividend for 57 consecutive years and Air Products and Chemicals has increased its dividend for 43 consecutive years. Air Products and Chemicals is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility & Risk

H. B. Fuller has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500. Comparatively, Air Products and Chemicals has a beta of 0.76, meaning that its share price is 24% less volatile than the S&P 500.

Earnings & Valuation

This table compares H. B. Fuller and Air Products and Chemicals”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
H. B. Fuller	$3.47 billion	0.77	$151.97 million	$3.59	13.76
Air Products and Chemicals	$12.04 billion	5.25	-$394.50 million	($0.22)	-1,289.23

H. B. Fuller has higher earnings, but lower revenue than Air Products and Chemicals. Air Products and Chemicals is trading at a lower price-to-earnings ratio than H. B. Fuller, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for H. B. Fuller and Air Products and Chemicals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
H. B. Fuller	0	3	4	1	2.75
Air Products and Chemicals	0	7	11	1	2.68

H. B. Fuller currently has a consensus price target of $64.62, suggesting a potential upside of 30.81%. Air Products and Chemicals has a consensus price target of $334.71, suggesting a potential upside of 18.01%. Given H. B. Fuller’s stronger consensus rating and higher probable upside, analysts plainly believe H. B. Fuller is more favorable than Air Products and Chemicals.

Summary

H. B. Fuller beats Air Products and Chemicals on 9 of the 17 factors compared between the two stocks.

About H. B. Fuller

H.B. Fuller Company, together with its subsidiaries, formulates, manufactures, and markets adhesives, sealants, coatings, polymers, tapes, encapsulants, additives, and other specialty chemical products. It operates through three segments: Hygiene, Health and Consumable Adhesives; Engineering Adhesives; and Construction Adhesives. The Hygiene, Health and Consumable Adhesives segment produces and supplies specialty industrial adhesives, such as thermoplastic, thermoset, reactive, water-based, and solvent-based products for applications in various markets, including packaging, converting, nonwoven and hygiene, and health and beauty. The Engineering Adhesives segment produces and supplies high performance industrial adhesives comprising reactive, light cure, two-part liquids, polyurethane, silicone, film, and fast cure products to the durable assembly, performance wood and textile, transportation, electronics, clean energy, aerospace and defense, appliance, heavy machinery, and insulating glass markets. The Construction Adhesives segment provides products used for tile setting, commercial roofing, heating, ventilation, and air conditioning and insulation applications, as well as caulks and sealants for the consumer market and professional trade. The company sells its products directly to customers, as well as through distributors and retailers in the Americas, Europe, India, the Middle East, Africa, and the Asia Pacific. H.B. Fuller Company was founded in 1887 and is headquartered in Saint Paul, Minnesota.

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.