Financial Analysis: Air Liquide (OTCMKTS:AIQUY) versus Air Products and Chemicals (NYSE:APD)

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

Dividends

Air Products and Chemicals pays an annual dividend of $7.24 per share and has a dividend yield of 2.6%. Air Liquide pays an annual dividend of $0.51 per share and has a dividend yield of 1.3%. Air Products and Chemicals pays out 76.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Air Products and Chemicals	16.91%	16.11%	6.92%
Air Liquide	N/A	N/A	N/A

Analyst Ratings

This is a summary of current recommendations for Air Products and Chemicals and Air Liquide, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Air Products and Chemicals	0	6	10	1	2.71
Air Liquide	0	1	2	1	3.00

Air Products and Chemicals presently has a consensus target price of $323.12, suggesting a potential upside of 14.20%. Given Air Products and Chemicals’ higher possible upside, research analysts clearly believe Air Products and Chemicals is more favorable than Air Liquide.

Institutional & Insider Ownership

81.7% of Air Products and Chemicals shares are held by institutional investors. Comparatively, 0.0% of Air Liquide shares are held by institutional investors. 1.9% of Air Products and Chemicals shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Air Products and Chemicals and Air Liquide”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Air Products and Chemicals	$12.04 billion	5.23	-$394.50 million	$9.45	29.94
Air Liquide	$30.47 billion	3.65	$3.98 billion	N/A	N/A

Air Liquide has higher revenue and earnings than Air Products and Chemicals.

Volatility & Risk

Air Products and Chemicals has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500. Comparatively, Air Liquide has a beta of 0.75, indicating that its stock price is 25% less volatile than the S&P 500.

Summary

Air Products and Chemicals beats Air Liquide on 10 of the 15 factors compared between the two stocks.

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.

About Air Liquide

L'Air Liquide S.A. provides gases, technologies, and services for the industrial and health sectors in Europe, the Americas, the Asia Pacific, the Middle East, and Africa. It operates in Gas & Services, Engineering & Construction, and Global Markets & Technologies segments. The Gas & Services segment comprises large industries business, which offers gas and energy solutions including oxygen, nitrogen, argon, hydrogen, and carbon monoxide, as well as operates cogeneration plants to supply steam and electricity to metals, chemicals, refining, and energy industries; and industrial merchant business line provides industrial gases, equipment, hardgoods, and associated services to materials and energy, automotive and manufacturing, food and pharmaceuticals, technology and research, and craftsmen and retail sectors. This segment also includes healthcare business, which provides medical gases, home healthcare services, medical equipment, and specialty ingredient to patients, healthcare professionals, and hospitals; and electronic business supply carrier gases, electronic specialty and advanced materials, equipment and installation, and service to semiconductor, flat panel, and photovoltaic markets. The Engineering & Construction segment designs, develops, and builds industrial gas production plants to third parties; and design and manufacture plants in traditional, renewable and alternative energy sectors. The Global Markets & Technologies segment delivers technological solutions, such as molecules, equipment, and services to energy transition and deep technology. This segment also invests in and operates biomethane production units; designs hydrogen refueling stations; and supplies gases for the offshore oil and gas platforms, offshore wind turbines, and cryogenic transportation by sea. L'Air Liquide S.A. was incorporated in 1902 and is headquartered in Paris, France.