Versum Materials (VSM) versus Its Competitors Critical Contrast
Versum Materials (NYSE: VSM) is one of 48 public companies in the “Specialty Chemicals” industry, but how does it compare to its peers? We will compare Versum Materials to similar businesses based on the strength of its profitability, risk, institutional ownership, dividends, earnings, analyst recommendations and valuation.
Insider and Institutional Ownership
90.4% of Versum Materials shares are held by institutional investors. Comparatively, 65.3% of shares of all “Specialty Chemicals” companies are held by institutional investors. 0.5% of Versum Materials shares are held by company insiders. Comparatively, 7.4% of shares of all “Specialty Chemicals” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
This is a summary of current recommendations and price targets for Versum Materials and its peers, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Versum Materials Competitors||173||1070||1342||24||2.47|
Versum Materials currently has a consensus price target of $36.11, indicating a potential downside of 1.31%. As a group, “Specialty Chemicals” companies have a potential upside of 0.72%. Given Versum Materials’ peers higher probable upside, analysts plainly believe Versum Materials has less favorable growth aspects than its peers.
Valuation & Earnings
This table compares Versum Materials and its peers revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Versum Materials||$1.13 billion||$193.00 million||20.67|
|Versum Materials Competitors||$1.91 billion||$115.75 million||219.98|
Versum Materials’ peers have higher revenue, but lower earnings than Versum Materials. Versum Materials is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
Versum Materials pays an annual dividend of $0.20 per share and has a dividend yield of 0.5%. Versum Materials pays out 11.3% of its earnings in the form of a dividend. As a group, “Specialty Chemicals” companies pay a dividend yield of 1.3% and pay out 26.1% of their earnings in the form of a dividend.
Volatility & Risk
Versum Materials has a beta of 0.85, indicating that its stock price is 15% less volatile than the S&P 500. Comparatively, Versum Materials’ peers have a beta of 1.37, indicating that their average stock price is 37% more volatile than the S&P 500.
This table compares Versum Materials and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Versum Materials Competitors||-639.63%||-3.74%||0.56%|
Versum Materials peers beat Versum Materials on 8 of the 15 factors compared.
About Versum Materials
Versum Materials, Inc. is a provider of solutions to the semiconductor and display industries. The Company is engaged in the development, manufacturing, transportation and handling of specialty materials. Its segments include Materials; Delivery Systems and Services (DS&S), and Corporate. The Materials segment is an integrated provider of specialty materials for the electronics industry, focusing on the integrated circuit and flat-panel display markets. The DS&S segment designs, manufactures, installs, operates, and maintains chemical and gas delivery and distribution systems for specialty gases and chemicals delivered directly to its customers’ manufacturing tools. The Company is engaged in molecular design and synthesis, purification, advanced analytics, formulation development and containers and delivery systems for the handling of high purity materials.
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