Analyzing Agrium (AGU) & Its Competitors
Agrium (NYSE: AGU) is one of 28 publicly-traded companies in the “Agricultural Chemicals” industry, but how does it weigh in compared to its rivals? We will compare Agrium to similar businesses based on the strength of its dividends, analyst recommendations, profitability, institutional ownership, earnings, risk and valuation.
This table compares Agrium and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of current ratings and price targets for Agrium and its rivals, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Agrium currently has a consensus price target of $112.50, suggesting a potential upside of 4.51%. As a group, “Agricultural Chemicals” companies have a potential upside of 4.36%. Given Agrium’s stronger consensus rating and higher possible upside, research analysts clearly believe Agrium is more favorable than its rivals.
Agrium pays an annual dividend of $3.50 per share and has a dividend yield of 3.3%. Agrium pays out 84.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Agricultural Chemicals” companies pay a dividend yield of 2.8% and pay out 71.7% of their earnings in the form of a dividend. Agrium has increased its dividend for 5 consecutive years.
Valuation and Earnings
This table compares Agrium and its rivals revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Agrium||$13.56 billion||$1.62 billion||25.94|
|Agrium Competitors||$3.75 billion||$756.62 million||15.22|
Agrium has higher revenue and earnings than its rivals. Agrium is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.
Institutional and Insider Ownership
66.3% of Agrium shares are owned by institutional investors. Comparatively, 49.0% of shares of all “Agricultural Chemicals” companies are owned by institutional investors. 16.0% of shares of all “Agricultural Chemicals” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Risk & Volatility
Agrium has a beta of 0.62, indicating that its stock price is 38% less volatile than the S&P 500. Comparatively, Agrium’s rivals have a beta of 0.95, indicating that their average stock price is 5% less volatile than the S&P 500.
Agrium beats its rivals on 11 of the 15 factors compared.
Agrium Company Profile
Agrium Inc. is a retailer of agricultural products and services in the United States, Canada, Australia, Argentina, Brazil, Chile and Uruguay and a multi-national producer and wholesale marketer of nutrients for agricultural and industrial markets. The Company’s segments include Retail and Wholesale. As of December 31, 2016, its Retail business unit marketed crop nutrients, crop protection products, seed, merchandise, application and other agronomic services through 1,500 retail locations in the United States, Canada, Australia, Argentina, Brazil, Chile and Uruguay. Its Wholesale business unit manufactures, mines and markets a range of nutrients, including nitrogen-based, potash and phosphate-based crop nutrient products. As of December 31, 2016, its Wholesale business unit owned and operated five North American nitrogen facilities, four located in Alberta, Canada and one in Borger, Texas, United States.
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