Air Products and Chemicals (NYSE: APD) is one of 35 public companies in the “Commodity Chemicals” industry, but how does it compare to its rivals? We will compare Air Products and Chemicals to similar businesses based off the strength of its valuation, profitability, institutional ownership, dividends, earnings, analyst recommendations and risk.

Dividends

Air Products and Chemicals pays an annual dividend of $3.80 per share and has a dividend yield of 2.6%. 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 increased its dividend for 34 consecutive years. Air Products and Chemicals is clearly a better dividend stock than its rivals, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Air Products and Chemicals and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Air Products and Chemicals 1 6 6 0 2.38
Air Products and Chemicals Competitors 188 992 1261 55 2.47

Air Products and Chemicals presently has a consensus target price of $153.92, indicating a potential upside of 6.18%. All “Commodity Chemicals” companies have a potential upside of 2.75%. Given Air Products and Chemicals’ higher possible upside, equities analysts plainly believe Air Products and Chemicals is more favorable than its rivals.

Volatility and Risk

Air Products and Chemicals has a beta of 1.25, suggesting that its share price is 25% more volatile than the S&P 500. Comparatively, Air Products and Chemicals’ rivals have a beta of 1.16, suggesting that their average share price is 16% more volatile than the S&P 500.

Insider & Institutional 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 stock will outperform the market over the long term.

Profitability

This table compares Air Products and Chemicals and its rivals’ 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 -27.97% 23.83% 5.35%

Valuation & Earnings

This table compares Air Products and Chemicals and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Air Products and Chemicals $9.95 billion $3.18 billion 10.88
Air Products and Chemicals Competitors $4.37 billion $977.90 million 28.06

Air Products and Chemicals has higher revenue and earnings than its rivals. Air Products and Chemicals is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently the more affordable than other companies in its industry.

Summary

Air Products and Chemicals beats its rivals 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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