Versum Materials (NYSE: VSM) is one of 46 public companies in the “Specialty Chemicals” industry, but how does it contrast to its competitors? We will compare Versum Materials to related businesses based on the strength of its analyst recommendations, earnings, valuation, risk, profitability, dividends and institutional ownership.

Risk and Volatility

Versum Materials has a beta of 1.62, suggesting that its share price is 62% more volatile than the S&P 500. Comparatively, Versum Materials’ competitors have a beta of 1.43, suggesting that their average share price is 43% more volatile than the S&P 500.

Insider and Institutional Ownership

90.7% of Versum Materials shares are owned by institutional investors. Comparatively, 66.5% of shares of all “Specialty Chemicals” companies are owned by institutional investors. 0.5% of Versum Materials shares are owned by company insiders. Comparatively, 7.4% of shares of all “Specialty Chemicals” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Dividends

Versum Materials pays an annual dividend of $0.20 per share and has a dividend yield of 0.5%. Versum Materials pays out 11.3% of its earnings in the form of a dividend. As a group, “Specialty Chemicals” companies pay a dividend yield of 1.3% and pay out 25.7% of their earnings in the form of a dividend.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Versum Materials and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Versum Materials 0 4 6 0 2.60
Versum Materials Competitors 171 1054 1312 24 2.46

Versum Materials currently has a consensus target price of $36.11, indicating a potential downside of 9.31%. As a group, “Specialty Chemicals” companies have a potential downside of 1.16%. Given Versum Materials’ competitors higher possible upside, analysts clearly believe Versum Materials has less favorable growth aspects than its competitors.

Earnings and Valuation

This table compares Versum Materials and its competitors revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Versum Materials $1.13 billion $193.00 million 22.50
Versum Materials Competitors $1.91 billion $115.75 million 243.66

Versum Materials’ competitors have higher revenue, but lower earnings than Versum Materials. Versum Materials 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.

Profitability

This table compares Versum Materials and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Versum Materials 17.13% -457.02% 17.84%
Versum Materials Competitors -6.69% -0.21% 3.62%

Summary

Versum Materials beats its competitors on 8 of the 15 factors compared.

About Versum Materials

Versum Materials, Inc. is a provider of solutions to the semiconductor and display industries. The Company is engaged in the development, manufacturing, transportation and handling of specialty materials. Its segments include Materials; Delivery Systems and Services (DS&S), and Corporate. The Materials segment is an integrated provider of specialty materials for the electronics industry, focusing on the integrated circuit and flat-panel display markets. The DS&S segment designs, manufactures, installs, operates, and maintains chemical and gas delivery and distribution systems for specialty gases and chemicals delivered directly to its customers’ manufacturing tools. The Company is engaged in molecular design and synthesis, purification, advanced analytics, formulation development and containers and delivery systems for the handling of high purity materials.

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