DowDuPont (NASDAQ: DWDP) and FMC Corporation (NYSE:FMC) are both large-cap basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, valuation, profitability, analyst recommendations, earnings, institutional ownership and dividends.

Earnings and Valuation

This table compares DowDuPont and FMC Corporation’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
DowDuPont N/A N/A N/A N/A N/A
FMC Corporation $3.31 billion 3.83 $708.40 million $0.35 270.15

FMC Corporation has higher revenue and earnings than DowDuPont.

Dividends

FMC Corporation pays an annual dividend of $0.66 per share and has a dividend yield of 0.7%. DowDuPont does not pay a dividend. FMC Corporation pays out 188.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. FMC Corporation has increased its dividend for 6 consecutive years.

Analyst Ratings

This is a summary of recent ratings and recommmendations for DowDuPont and FMC Corporation, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DowDuPont 1 3 16 0 2.75
FMC Corporation 0 5 13 0 2.72

DowDuPont currently has a consensus price target of $79.44, suggesting a potential upside of 11.60%. FMC Corporation has a consensus price target of $89.50, suggesting a potential downside of 5.34%. Given DowDuPont’s stronger consensus rating and higher probable upside, research analysts clearly believe DowDuPont is more favorable than FMC Corporation.

Institutional & Insider Ownership

90.5% of FMC Corporation shares are held by institutional investors. 1.1% of FMC Corporation shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares DowDuPont and FMC Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
DowDuPont 7.73% N/A N/A
FMC Corporation 1.58% 16.51% 5.44%

Summary

FMC Corporation beats DowDuPont on 7 of the 12 factors compared between the two stocks.

About DowDuPont

DowDuPont Inc. is a holding company formed through the merger of equals between The Dow Chemical Company and E. I. du Pont de Nemours and Company (DuPont). The Company’s business divisions include Agriculture division, Material Science division, and a Specialty Products division. The Agriculture Division offers a complete portfolio of products and technologies, and a pipeline of germplasm, traits and crop protection. The Materials Science Division provides solutions, such as packaging, transportation, infrastructure and customer care. The Specialty Products division provides solution for industrial, safety, energy, food, nutrition, construction, electronics and consumer goods industries. The company provides solutions to a range of markets, including aerospace, automotive, consumer electronics, military, printing, renewable energy, semiconductors, child nutrition, dietary supplements, carpet and apparel, fertilizer, and oil and gas/energy.

About FMC Corporation

FMC Corporation is a diversified chemical company serving agricultural, consumer and industrial markets. The Company operates in three business segments: FMC Agricultural Solutions, FMC Health and Nutrition, and FMC Lithium. As of December 31, 2016, the FMC Agricultural Solutions segment developed, marketed and sold three classes of crop protection chemicals: insecticides, herbicides and fungicides. The Company’s FMC Agricultural Solutions segment operates in the agrochemicals industry. This segment develops, manufactures and sells a portfolio of professional pest control, and lawn and garden products. The FMC Health and Nutrition segment focuses on nutritional ingredients, health excipients and functional health ingredients. The Company’s FMC Health and Nutrition segment focuses on food ingredients, pharmaceutical excipients and omega-3 oils. The Company’s FMC Lithium segment manufactures lithium for use in a range of lithium products.

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