Contrasting Akzo Nobel (OTCMKTS:AKZOY) & Air Products and Chemicals (NYSE:APD)

Akzo Nobel (OTCMKTS:AKZOY) and Air Products and Chemicals (NYSE:APD) are both large-cap basic materials companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, risk, dividends, valuation and earnings.

Earnings & Valuation

This table compares Akzo Nobel and Air Products and Chemicals”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Akzo Nobel	$11.59 billion	1.03	$586.50 million	$0.10	232.10
Air Products and Chemicals	$12.04 billion	5.04	-$394.50 million	($1.78)	-153.12

Akzo Nobel has higher earnings, but lower revenue than Air Products and Chemicals. Air Products and Chemicals is trading at a lower price-to-earnings ratio than Akzo Nobel, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Akzo Nobel has a beta of 1.08, indicating that its stock price is 8% more volatile than the S&P 500. Comparatively, Air Products and Chemicals has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Akzo Nobel and Air Products and Chemicals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Akzo Nobel	0	3	2	1	2.67
Air Products and Chemicals	0	8	7	1	2.56

Air Products and Chemicals has a consensus target price of $288.00, indicating a potential upside of 5.66%. Given Air Products and Chemicals’ higher probable upside, analysts plainly believe Air Products and Chemicals is more favorable than Akzo Nobel.

Profitability

This table compares Akzo Nobel and Air Products and Chemicals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Akzo Nobel	0.53%	13.69%	4.35%
Air Products and Chemicals	-2.73%	15.77%	6.75%

Institutional and Insider Ownership

0.4% of Akzo Nobel shares are owned by institutional investors. Comparatively, 81.7% of Air Products and Chemicals shares are owned by institutional investors. 1.9% of Air Products and Chemicals shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Akzo Nobel pays an annual dividend of $0.25 per share and has a dividend yield of 1.1%. Air Products and Chemicals pays an annual dividend of $7.16 per share and has a dividend yield of 2.6%. Akzo Nobel pays out 250.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Air Products and Chemicals pays out -402.2% of its earnings in the form of a dividend. Air Products and Chemicals has increased its dividend for 43 consecutive years. Air Products and Chemicals is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Air Products and Chemicals beats Akzo Nobel on 11 of the 17 factors compared between the two stocks.

About Akzo Nobel

Akzo Nobel N.V. engages in the production and sale of paints and coatings worldwide. The company operates through two segments: Decorative Paints and Performance Coatings. It offers decorative paints, including paints, lacquers, and varnishes; and a range of mixing machines and color concepts for the building and renovation industry, as well as specialty coatings. The company also provides performance coatings that protect and enhance ships, cars, aircraft, yachts, architectural components, consumer goods, and oil and gas facilities. It offers its products under AkzoNobel, Alabastine, Alba, Andercol, Apla, Armstead Trade, Astral, Astral Batiment, AwlGrip, Brikol, Dulux, Bruguer, Cetabever, Cetol, Chemcraft, Colourland Paints, CONSOLAN, Coral, Cromadex, Cuprinol, Dynacoat, Flexa, Glitsa, Grip-Gard, Herbol, Hammerite, International, Interlux, Innenweis, Interpon, Inca, Luxol, Levis, Lesonal, Molto, Modern Classikk, Maxilite, Mauvilac, Mason CT, Marshall, Mactra, Nordsjo, Oxirite, Protecto, Procolor, Polyfilla, Polycell, Pinotex, Pintuco, Resicoat, Relest, Sparlack, Sadolin, Sikkens, Sea Hawk, Savana, Salcomix, Trimetal, Titanlux, Taubmans, U-tech, Vpowdertech, Vivechrom, Xylazel, Xyladecor, Wanda, and Zweihorn brands. The company serves to energy, packaging, infrastructure, and shipbuilding and maintenance industries, as well as general industries, such as agricultural and construction equipment, construction-related steel, metal fabrication, pipes, appliances, and transportation. The company was formerly known as Akzo NV and changed its name to Akzo Nobel N.V. in 1994. Akzo Nobel N.V. was founded in 1646 and is headquartered in Amsterdam, the Netherlands.

About Air Products and Chemicals

Air Products and Chemicals, Inc. provides atmospheric gases, process and specialty gases, equipment, and related services in the Americas, Asia, Europe, the Middle East, India, and internationally. The company produces atmospheric gases, including oxygen, nitrogen, and argon; process gases, such as hydrogen, helium, carbon dioxide, carbon monoxide, and syngas; and specialty gases for customers in various industries, including refining, chemical, manufacturing, electronics, energy production, medical, food, and metals. It also designs and manufactures equipment for air separation, hydrocarbon recovery and purification, natural gas liquefaction, and liquid helium and liquid hydrogen transport and storage. The company was founded in 1940 and is headquartered in Allentown, Pennsylvania.