Financial Analysis: Air Products and Chemicals (APD) and Its Competitors
Air Products and Chemicals (NYSE: APD) is one of 35 public companies in the “Commodity Chemicals” industry, but how does it contrast to its competitors? We will compare Air Products and Chemicals to similar companies based on the strength of its earnings, analyst recommendations, dividends, risk, profitability, institutional ownership and valuation.
Air Products and Chemicals pays an annual dividend of $3.80 per share and has a dividend yield of 2.5%. Air Products and Chemicals pays out 28.5% of its earnings in the form of a dividend. As a group, “Commodity Chemicals” companies pay a dividend yield of 1.9% and pay out 55.0% of their earnings in the form of a dividend. Air Products and Chemicals has raised its dividend for 34 consecutive years. Air Products and Chemicals is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.
This table compares Air Products and Chemicals and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Air Products and Chemicals||34.63%||17.23%||8.25%|
|Air Products and Chemicals Competitors||-27.97%||23.86%||5.35%|
Insider and Institutional Ownership
87.9% of Air Products and Chemicals shares are held by institutional investors. Comparatively, 69.9% of shares of all “Commodity Chemicals” companies are held by institutional investors. 0.4% of Air Products and Chemicals shares are held by insiders. Comparatively, 7.9% of shares of all “Commodity Chemicals” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Air Products and Chemicals and its competitors gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Air Products and Chemicals||$9.95 billion||$3.18 billion||11.34|
|Air Products and Chemicals Competitors||$4.37 billion||$977.53 million||32.53|
Air Products and Chemicals has higher revenue and earnings than its competitors. Air Products and Chemicals is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
This is a breakdown of current ratings and price targets for Air Products and Chemicals and its competitors, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Air Products and Chemicals||1||6||7||0||2.43|
|Air Products and Chemicals Competitors||190||1006||1282||56||2.48|
Air Products and Chemicals presently has a consensus target price of $155.57, suggesting a potential upside of 2.88%. As a group, “Commodity Chemicals” companies have a potential downside of 1.42%. Given Air Products and Chemicals’ higher possible upside, analysts clearly believe Air Products and Chemicals is more favorable than its competitors.
Volatility & Risk
Air Products and Chemicals has a beta of 1.25, meaning that its share price is 25% more volatile than the S&P 500. Comparatively, Air Products and Chemicals’ competitors have a beta of 1.16, meaning that their average share price is 16% more volatile than the S&P 500.
Air Products and Chemicals beats its competitors on 9 of the 15 factors compared.
About Air Products and Chemicals
Air Products and Chemicals, Inc., is an industrial gases company. The Company’s Industrial Gases business provides atmospheric and process gases and related equipment to manufacturing markets, including refining and petrochemical, metals, electronics, and food and beverage. The Company is also a supplier of liquefied natural gas process technology and equipment. The Company operates through five segments: Industrial Gases-Americas, Industrial Gases-Europe, Middle East, and Africa (EMEA), Industrial Gases-Asia, Industrial Gases-Global, and Corporate and other.
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