Air Products and Chemicals (APD) vs. Innophos Holdings (IPHS) Financial Analysis
Air Products and Chemicals (NYSE: APD) and Innophos Holdings (NASDAQ:IPHS) are both basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, analyst recommendations, valuation, institutional ownership, earnings, profitability and risk.
Air Products and Chemicals pays an annual dividend of $3.80 per share and has a dividend yield of 2.5%. Innophos Holdings pays an annual dividend of $1.92 per share and has a dividend yield of 4.1%. Air Products and Chemicals pays out 28.5% of its earnings in the form of a dividend. Innophos Holdings pays out 84.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Air Products and Chemicals has raised its dividend for 34 consecutive years.
This table compares Air Products and Chemicals and Innophos Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Air Products and Chemicals||34.63%||17.23%||8.25%|
Institutional and Insider Ownership
87.9% of Air Products and Chemicals shares are held by institutional investors. Comparatively, 94.2% of Innophos Holdings shares are held by institutional investors. 0.4% of Air Products and Chemicals shares are held by insiders. Comparatively, 2.3% of Innophos Holdings shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Valuation & Earnings
This table compares Air Products and Chemicals and Innophos Holdings’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Air Products and Chemicals||$9.95 billion||3.31||$3.18 billion||$13.33||11.33|
|Innophos Holdings||$698.91 million||1.30||$116.47 million||$2.28||20.46|
Air Products and Chemicals has higher revenue and earnings than Innophos Holdings. Air Products and Chemicals is trading at a lower price-to-earnings ratio than Innophos Holdings, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Air Products and Chemicals has a beta of 1.25, indicating that its stock price is 25% more volatile than the S&P 500. Comparatively, Innophos Holdings has a beta of 0.87, indicating that its stock price is 13% less volatile than the S&P 500.
This is a breakdown of current ratings and price targets for Air Products and Chemicals and Innophos Holdings, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Air Products and Chemicals||1||6||7||0||2.43|
Air Products and Chemicals presently has a consensus price target of $155.57, suggesting a potential upside of 3.04%. Innophos Holdings has a consensus price target of $56.00, suggesting a potential upside of 20.07%. Given Innophos Holdings’ stronger consensus rating and higher possible upside, analysts clearly believe Innophos Holdings is more favorable than Air Products and Chemicals.
Air Products and Chemicals beats Innophos Holdings on 12 of the 17 factors compared between the two stocks.
Air Products and Chemicals Company Profile
Air Products and Chemicals, Inc., is an industrial gases company. The Company’s Industrial Gases business provides atmospheric and process gases and related equipment to manufacturing markets, including refining and petrochemical, metals, electronics, and food and beverage. The Company is also a supplier of liquefied natural gas process technology and equipment. The Company operates through five segments: Industrial Gases-Americas, Industrial Gases-Europe, Middle East, and Africa (EMEA), Industrial Gases-Asia, Industrial Gases-Global, and Corporate and other.
Innophos Holdings Company Profile
Innophos Holdings, Inc. is a producer of nutritional specialty ingredients with applications in food, beverage, dietary supplements, pharmaceutical, oral care and industrial end markets. The Company also provides bioactive mineral and nutritional ingredients. The Company’s segments include Specialty Phosphates US & Canada, Specialty Phosphates Mexico, and Granular Triple Super Phosphate (GTSP) & Other. The Company has four principal product lines: Specialty Ingredients; Food and Technical Grade Purified Phosphoric Acid (PPA); Technical Grade Sodium Tripolyphosphate (STPP), & Detergent Grade PPA, and GTSP & Other. The Company’s bioactive mineral ingredients are mineral-based ingredients for food, beverage and dietary supplement end markets that are manufactured to be readily digestible. The Company has its manufacturing facilities located throughout the United States, Canada, Mexico and China.
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