FMC Corporation (FMC) versus Solutia (SOA) Financial Survey
FMC Corporation (NYSE: FMC) and Solutia (NYSE:SOA) are both mid-cap basic materials companies, but which is the better investment? We will contrast the two companies based on the strength of their valuation, earnings, risk, profitability, analyst recommendations, institutional ownership and dividends.
FMC Corporation pays an annual dividend of $0.66 per share and has a dividend yield of 0.7%. Solutia does not pay a dividend. FMC Corporation pays out 45.2% of its earnings in the form of a dividend. Solutia has increased its dividend for 6 consecutive years.
This table compares FMC Corporation and Solutia’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
90.7% of FMC Corporation shares are held by institutional investors. 1.1% of FMC Corporation shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Valuation and Earnings
This table compares FMC Corporation and Solutia’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|FMC Corporation||$3.28 billion||3.81||$209.10 million||$1.46||63.82|
FMC Corporation has higher revenue and earnings than Solutia. Solutia is trading at a lower price-to-earnings ratio than FMC Corporation, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and target prices for FMC Corporation and Solutia, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
FMC Corporation presently has a consensus price target of $92.50, suggesting a potential downside of 0.72%.
FMC Corporation beats Solutia on 8 of the 11 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.
Solutia Company Profile
Solutia Inc., together with its subsidiaries, is a global manufacturer of performance materials and specialty chemicals used in a range of consumer and industrial applications, including interlayers and aftermarket film for automotive and architectural glass; chemicals that promote safety and durability in tires, and encapsulants, coatings and specialty chemicals used in a variety of electronic, industrial and energy solutions. The Company operates in three segments: Advanced Interlayers; Performance Films; and Technical Specialties. On November 23, 2011, the Company acquired Southwall Technologies Inc. (Southwall). In April 2011, the Company sold its Santoweb and Vocol businesses to Rhein Chemie, a wholly owned subsidiary of LANXESS AG.
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