Critical Comparison: Air Products and Chemicals (APD) versus Its Peers
Air Products and Chemicals (NYSE: APD) is one of 35 public companies in the “Commodity Chemicals” industry, but how does it contrast to its peers? We will compare Air Products and Chemicals to related businesses based on the strength of its risk, earnings, valuation, institutional ownership, profitability, analyst recommendations 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 increased 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.
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%||24.43%||5.42%|
This is a breakdown of recent ratings and target prices for Air Products and Chemicals and its peers, as provided 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 presently has a consensus target price 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 probable upside, equities analysts plainly believe Air Products and Chemicals is more favorable than its peers.
Institutional & Insider Ownership
88.1% of Air Products and Chemicals shares are owned by institutional investors. Comparatively, 69.9% of shares of all “Commodity Chemicals” companies are owned by institutional investors. 0.4% of Air Products and Chemicals shares are owned by insiders. Comparatively, 7.9% of shares of all “Commodity Chemicals” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Air Products and Chemicals and its peers gross revenue, earnings per share (EPS) 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.
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’ peers have a beta of 1.16, suggesting that their average share price is 16% more volatile than the S&P 500.
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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