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

Risk & Volatility

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

Earnings and Valuation

This table compares Versum Materials and its rivals gross 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 220.40

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

Profitability

This table compares Versum Materials and its rivals’ 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%

Insider & Institutional Ownership

90.4% of Versum Materials shares are owned by institutional investors. Comparatively, 65.3% 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 endowments, large money managers and hedge funds believe a stock 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 26.1% of their earnings in the form of a dividend.

Analyst Ratings

This is a summary of current recommendations for Versum Materials and its rivals, 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 currently has a consensus target price 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’ rivals higher probable upside, analysts plainly believe Versum Materials has less favorable growth aspects than its rivals.

Summary

Versum Materials rivals beat Versum Materials 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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