Head-To-Head Comparison: Air Products and Chemicals (APD) vs. The Competition

Air Products and Chemicals (NYSE:APD) is one of 295 public companies in the “Chemicals” industry, but how does it contrast to its rivals? We will compare Air Products and Chemicals to related companies based on the strength of its profitability, dividends, valuation, risk, earnings, institutional ownership and analyst recommendations.

Risk & Volatility

Air Products and Chemicals has a beta of 0.67, suggesting that its share price is 33% less volatile than the S&P 500. Comparatively, Air Products and Chemicals’ rivals have a beta of 0.93, suggesting that their average share price is 7% less volatile than the S&P 500.

Dividends

Air Products and Chemicals pays an annual dividend of $7.24 per share and has a dividend yield of 2.4%. Air Products and Chemicals pays out 304.2% 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, “Chemicals” companies pay a dividend yield of 3.1% and pay out 104.8% of their earnings in the form of a dividend. Air Products and Chemicals has increased its dividend for 43 consecutive years. Air Products and Chemicals lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Air Products and Chemicals	4.10%	17.19%	7.29%
Air Products and Chemicals Competitors	-59.14%	-0.41%	-1.37%

Analyst Ratings

This is a summary of recent ratings and target prices for Air Products and Chemicals and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Air Products and Chemicals	0	7	11	1	2.68
Air Products and Chemicals Competitors	3248	12212	14131	519	2.40

Air Products and Chemicals presently has a consensus price target of $334.24, indicating a potential upside of 9.73%. As a group, “Chemicals” companies have a potential upside of 8.88%. Given Air Products and Chemicals’ stronger consensus rating and higher possible upside, equities analysts clearly believe Air Products and Chemicals is more favorable than its rivals.

Valuation and Earnings

This table compares Air Products and Chemicals and its rivals gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Air Products and Chemicals	$12.60 billion	-$394.50 million	127.99
Air Products and Chemicals Competitors	$6.40 billion	$222.31 million	6.28

Air Products and Chemicals has higher revenue, but lower earnings than its rivals. Air Products and Chemicals 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 & Insider Ownership

81.7% of Air Products and Chemicals shares are owned by institutional investors. Comparatively, 47.4% of shares of all “Chemicals” companies are owned by institutional investors. 1.9% of Air Products and Chemicals shares are owned by insiders. Comparatively, 13.7% of shares of all “Chemicals” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Air Products and Chemicals beats its rivals on 10 of the 15 factors compared.

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.