FMC Corporation (FMC) & DowDuPont (DWDP) Financial Analysis
FMC Corporation (NYSE: FMC) and DowDuPont (NASDAQ:DWDP) are both basic materials companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, risk, institutional ownership, profitability and dividends.
Valuation and Earnings
This table compares FMC Corporation and DowDuPont’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|FMC Corporation||$3.31 billion||3.60||$708.40 million||$0.35||253.86|
FMC Corporation has higher revenue and earnings than DowDuPont.
This table compares FMC Corporation and DowDuPont’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
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. DowDuPont has increased its dividend for 6 consecutive years.
Insider & Institutional Ownership
90.4% of FMC Corporation shares are owned by institutional investors. 1.1% of FMC Corporation shares are owned by company 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.
This is a summary of current ratings and recommmendations for FMC Corporation and DowDuPont, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
FMC Corporation presently has a consensus target price of $88.12, suggesting a potential downside of 0.82%. DowDuPont has a consensus target price of $79.00, suggesting a potential upside of 12.18%. Given DowDuPont’s stronger consensus rating and higher possible upside, analysts clearly believe DowDuPont is more favorable than FMC Corporation.
DowDuPont beats FMC Corporation on 7 of the 13 factors compared between the two stocks.
FMC Corporation Company Profile
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.
DowDuPont Company Profile
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.
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