Critical Comparison: Olin (NYSE:OLN) vs. Air Liquide (OTCMKTS:AIQUY)

Air Liquide (OTCMKTS:AIQUY) and Olin (NYSE:OLN) are both basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, analyst recommendations, risk, earnings, profitability, institutional ownership and valuation.

Dividends

Air Liquide pays an annual dividend of $0.48 per share and has a dividend yield of 1.2%. Olin pays an annual dividend of $0.80 per share and has a dividend yield of 2.9%. Olin pays out -210.5% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares Air Liquide and Olin”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Air Liquide	$29.28 billion	3.93	$3.58 billion	N/A	N/A
Olin	$6.78 billion	0.46	-$42.80 million	($0.38)	-71.45

Air Liquide has higher revenue and earnings than Olin.

Volatility and Risk

Air Liquide has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500. Comparatively, Olin has a beta of 1.64, meaning that its stock price is 64% more volatile than the S&P 500.

Profitability

This table compares Air Liquide and Olin’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Air Liquide	N/A	N/A	N/A
Olin	-0.63%	-0.47%	-0.12%

Insider and Institutional Ownership

0.0% of Air Liquide shares are owned by institutional investors. Comparatively, 88.7% of Olin shares are owned by institutional investors. 1.6% of Olin shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations for Air Liquide and Olin, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Air Liquide	0	3	2	0	2.40
Olin	3	12	2	1	2.06

Olin has a consensus target price of $23.07, indicating a potential downside of 15.05%. Given Olin’s higher possible upside, analysts clearly believe Olin is more favorable than Air Liquide.

About Air Liquide

L'Air Liquide S.A. provides gases, technologies, and services for the industrial and health sectors in Europe, the Americas, the Asia Pacific, the Middle East, and Africa. It operates in Gas & Services, Engineering & Construction, and Global Markets & Technologies segments. The Gas & Services segment comprises large industries business, which offers gas and energy solutions including oxygen, nitrogen, argon, hydrogen, and carbon monoxide, as well as operates cogeneration plants to supply steam and electricity to metals, chemicals, refining, and energy industries; and industrial merchant business line provides industrial gases, equipment, hardgoods, and associated services to materials and energy, automotive and manufacturing, food and pharmaceuticals, technology and research, and craftsmen and retail sectors. This segment also includes healthcare business, which provides medical gases, home healthcare services, medical equipment, and specialty ingredient to patients, healthcare professionals, and hospitals; and electronic business supply carrier gases, electronic specialty and advanced materials, equipment and installation, and service to semiconductor, flat panel, and photovoltaic markets. The Engineering & Construction segment designs, develops, and builds industrial gas production plants to third parties; and design and manufacture plants in traditional, renewable and alternative energy sectors. The Global Markets & Technologies segment delivers technological solutions, such as molecules, equipment, and services to energy transition and deep technology. This segment also invests in and operates biomethane production units; designs hydrogen refueling stations; and supplies gases for the offshore oil and gas platforms, offshore wind turbines, and cryogenic transportation by sea. L'Air Liquide S.A. was incorporated in 1902 and is headquartered in Paris, France.

About Olin

Olin Corporation manufactures and distributes chemical products in the United States, Europe, Asia Pacific, Latin America, and Canada. It operates through three segments: Chlor Alkali Products and Vinyls; Epoxy; and Winchester. The Chlor Alkali Products and Vinyls segment offers chlorine and caustic soda, ethylene dichloride and vinyl chloride monomers, methyl chloride, methylene chloride, chloroform, carbon tetrachloride, perchloroethylene, hydrochloric acid, hydrogen, bleach products, potassium hydroxide, and chlorinated organics intermediates and solvents. The Epoxy segment provides Allylics, such as allyl chloride, epichlorohydrin, and glycerin; aromatics, including acetone, bisphenol, cumene, and phenol; liquid and solid epoxy resins; and converted epoxy resins and additives. The Winchester segment offers sporting ammunition products, including shotshells, small caliber centerfire, and rimfire ammunition products for hunters and recreational shooters, and law enforcement agencies; small caliber military ammunition products for use in infantry and mounted weapons; and industrial products comprising gauge loads and powder-actuated tool loads for maintenance applications in power and concrete industries, and powder-actuated tools in construction industry. The company markets its products through its sales force, as well as directly to various industrial customers, mass merchants, retailers, wholesalers, gun clubs, other distributors, and the U.S. Government and its prime contractors. Olin Corporation was incorporated in 1892 and is based in Clayton, Missouri.