CF Industries (NYSE: CF) is one of 20 publicly-traded companies in the “AGRIBUSINESS” industry, but how does it contrast to its rivals? We will compare CF Industries to related businesses based on the strength of its profitability, risk, dividends, institutional ownership, analyst recommendations, earnings and valuation.

Valuation & Earnings

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This table compares CF Industries and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
CF Industries $4.13 billion $358.00 million 24.82
CF Industries Competitors $8.40 billion $353.86 million 8.39

CF Industries’ rivals have higher revenue, but lower earnings than CF Industries. CF Industries is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Volatility & Risk

CF Industries has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500. Comparatively, CF Industries’ rivals have a beta of 0.70, indicating that their average stock price is 30% less volatile than the S&P 500.

Profitability

This table compares CF Industries and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CF Industries 8.67% -0.92% -0.40%
CF Industries Competitors -18.32% 2.95% 2.18%

Analyst Recommendations

This is a breakdown of recent ratings and recommmendations for CF Industries and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CF Industries 3 9 2 0 1.93
CF Industries Competitors 221 731 765 49 2.36

CF Industries currently has a consensus target price of $37.50, suggesting a potential downside of 0.92%. As a group, “AGRIBUSINESS” companies have a potential upside of 6.77%. Given CF Industries’ rivals stronger consensus rating and higher probable upside, analysts clearly believe CF Industries has less favorable growth aspects than its rivals.

Dividends

CF Industries pays an annual dividend of $1.20 per share and has a dividend yield of 3.2%. CF Industries pays out 78.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “AGRIBUSINESS” companies pay a dividend yield of 3.2% and pay out 78.5% of their earnings in the form of a dividend. CF Industries lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Institutional & Insider Ownership

48.5% of shares of all “AGRIBUSINESS” companies are held by institutional investors. 1.0% of CF Industries shares are held by company insiders. Comparatively, 15.6% of shares of all “AGRIBUSINESS” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

CF Industries rivals beat CF Industries on 11 of the 15 factors compared.

CF Industries Company Profile

CF Industries Holdings, Inc. manufactures and distributes nitrogen fertilizer, and other nitrogen products. The Company’s nitrogen fertilizer products are ammonia, granular urea, urea ammonium nitrate solution (UAN) and ammonium nitrate (AN). Its other nitrogen products include diesel exhaust fluid (DEF), urea liquor, nitric acid and aqua ammonia, which are sold primarily to the Company’s industrial customers, and compound fertilizer products (nitrogen, phosphorus and potassium or NPKs). The Company’s segments include ammonia, granular urea, UAN, AN and other. The Company’s ammonia segment produces anhydrous ammonia (ammonia), which is concentrated nitrogen fertilizer as it contains 82% nitrogen. The granular urea segment produces granular urea, which contains 46% nitrogen. The UAN segment produces urea ammonium nitrate solution. The Other segment includes DEF, urea liquor, nitric acid and NPKs. The Company’s primary nitrogen fertilizer products are ammonia, granular urea, UAN and AN.

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