Versum Materials (NYSE: VSM) is one of 48 publicly-traded companies in the “Specialty Chemicals” industry, but how does it weigh in compared to its competitors? We will compare Versum Materials to related businesses based on the strength of its earnings, risk, analyst recommendations, dividends, institutional ownership, valuation and profitability.

Earnings & Valuation

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

Gross Revenue Net Income Price/Earnings Ratio
Versum Materials $1.13 billion $193.00 million 20.67
Versum Materials Competitors $1.91 billion $115.75 million 219.99

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.

Analyst Recommendations

This is a summary of current recommendations and price targets for Versum Materials and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Versum Materials 0 4 6 0 2.60
Versum Materials Competitors 173 1070 1342 24 2.47

Versum Materials presently has a consensus price target of $36.11, suggesting a potential downside of 1.31%. As a group, “Specialty Chemicals” companies have a potential upside of 0.72%. Given Versum Materials’ competitors higher possible upside, analysts clearly believe Versum Materials has less favorable growth aspects than its competitors.

Risk & Volatility

Versum Materials has a beta of 0.85, meaning that its stock price is 15% less volatile than the S&P 500. Comparatively, Versum Materials’ competitors have a beta of 1.37, meaning that their average stock price is 37% more volatile than the S&P 500.

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 26.1% of their earnings in the form of a dividend.

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 -639.63% -3.74% 0.56%

Institutional and Insider Ownership

90.4% of Versum Materials shares are held by institutional investors. Comparatively, 65.3% of shares of all “Specialty Chemicals” companies are held by institutional investors. 0.5% of Versum Materials shares are held by insiders. Comparatively, 7.4% of shares of all “Specialty Chemicals” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Versum Materials competitors beat Versum Materials on 8 of the 15 factors compared.

Versum Materials Company Profile

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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