Financial Contrast: Air Products and Chemicals (APD) vs. The Competition
Air Products and Chemicals (NYSE: APD) is one of 35 publicly-traded companies in the “Commodity Chemicals” industry, but how does it weigh in compared to its peers? We will compare Air Products and Chemicals to similar companies based on the strength of its profitability, valuation, analyst recommendations, institutional ownership, earnings, risk and dividends.
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 2.0% 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 peers, given its higher yield and lower payout ratio.
Volatility and Risk
Air Products and Chemicals has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500. Comparatively, Air Products and Chemicals’ peers have a beta of 1.16, meaning that their average stock price is 16% more volatile than the S&P 500.
Earnings and Valuation
This table compares Air Products and Chemicals and its peers top-line revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Air Products and Chemicals||$9.95 billion||$3.18 billion||11.26|
|Air Products and Chemicals Competitors||$4.37 billion||$978.27 million||29.06|
Air Products and Chemicals has higher revenue and earnings than its peers. Air Products and Chemicals is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
This is a summary of recent ratings and price targets for Air Products and Chemicals and its peers, 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||188||995||1266||55||2.47|
Air Products and Chemicals currently has a consensus price target of $155.57, suggesting a potential upside of 3.62%. As a group, “Commodity Chemicals” companies have a potential upside of 1.23%. Given Air Products and Chemicals’ higher possible upside, research analysts plainly believe Air Products and Chemicals is more favorable than its peers.
This table compares Air Products and Chemicals and its peers’ 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||-27.79%||24.07%||5.46%|
Institutional and Insider Ownership
88.1% 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 company insiders. Comparatively, 7.9% of shares of all “Commodity Chemicals” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Air Products and Chemicals beats its peers on 9 of the 15 factors compared.
Air Products and Chemicals Company Profile
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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