Head-To-Head Contrast: Air Products and Chemicals (NYSE:APD) & Nippon Paint (OTCMKTS:NPCPF)

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

Insider & Institutional Ownership

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

Dividends

Air Products and Chemicals pays an annual dividend of $7.24 per share and has a dividend yield of 2.3%. Nippon Paint pays an annual dividend of $4.40 per share and has a dividend yield of 55.3%. Air Products and Chemicals pays out -3,290.9% of its earnings in the form of a dividend. Nippon Paint pays out 785.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Air Products and Chemicals has raised its dividend for 43 consecutive years.

Earnings & Valuation

This table compares Air Products and Chemicals and Nippon Paint”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Air Products and Chemicals	$12.60 billion	5.59	-$394.50 million	($0.22)	-1,438.05
Nippon Paint	$11.87 billion	1.56	$1.20 billion	$0.56	14.20

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Air Products and Chemicals	-0.38%	16.87%	7.18%
Nippon Paint	10.22%	10.65%	4.85%

Analyst Ratings

This is a summary of current ratings and target prices for Air Products and Chemicals and Nippon Paint, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Air Products and Chemicals	0	7	10	2	2.74
Nippon Paint	0	1	0	0	2.00

Air Products and Chemicals presently has a consensus target price of $333.88, suggesting a potential upside of 5.54%. Given Air Products and Chemicals’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Air Products and Chemicals is more favorable than Nippon Paint.

Summary

Air Products and Chemicals beats Nippon Paint on 12 of the 17 factors compared between the two stocks.

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.

About Nippon Paint

Nippon Paint Holdings Co., Ltd. engages in the paints and fine chemicals businesses. The company offers automotive coatings, including paints for the automotive body, including surface treatment, electrodeposition coating, intermediate coating, and finish coating; paints for plastic components, such as bumpers and interior components; trade-use paints for construction sites, including single-family detached homes, buildings, and bridges; and industrial coatings that are used in a range of products, including construction and farming machinery, exterior construction materials, office equipment, and electric home appliances. It also provides marine coatings, such as antifouling paints; treatment agents for steel and aluminum products; and paints for DIY applications comprising wallpaper, wall cloth, and wooden, steel, and concrete materials. In addition, the company offers surface treatment products comprising functional coatings, which demonstrate various functions, such as hydrophilicity and rust prevention, and substrate films; caulking agents to fill gaps between building materials; adhesives to fix flooring and building materials; and fillers used for base coatings. Further, it is involved in the investment business; manufactures and sells surface treatment agents; and sales of paints and raw materials. The company has operations in Japan, Asia, the Americas, Oceania, and internationally. The company was formerly known as Nippon Paint Co., Ltd. and changed its name to Nippon Paint Holdings Co., Ltd. in October 2014. Nippon Paint Holdings Co., Ltd. was founded in 1879 and is headquartered in Tokyo, Japan.