Comparing Johnson Matthey (OTCMKTS:JMPLY) and Air Products and Chemicals (NYSE:APD)

Johnson Matthey (OTCMKTS:JMPLY) and Air Products and Chemicals (NYSE:APD) are both basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their earnings, institutional ownership, profitability, valuation, analyst recommendations, risk and dividends.

Insider & Institutional Ownership

81.7% of Air Products and Chemicals shares are held by institutional investors. 1.9% of Air Products and Chemicals shares are held 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.

Earnings & Valuation

This table compares Johnson Matthey and Air Products and Chemicals”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Johnson Matthey	$14.89 billion	0.33	$475.91 million	N/A	N/A
Air Products and Chemicals	$12.04 billion	5.37	-$394.50 million	$9.45	30.69

Johnson Matthey has higher revenue and earnings than Air Products and Chemicals.

Dividends

Johnson Matthey pays an annual dividend of $1.16 per share and has a dividend yield of 2.0%. Air Products and Chemicals pays an annual dividend of $7.24 per share and has a dividend yield of 2.5%. Air Products and Chemicals pays out 76.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Air Products and Chemicals has raised its dividend for 43 consecutive years. Air Products and Chemicals is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a breakdown of recent ratings for Johnson Matthey and Air Products and Chemicals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Johnson Matthey	1	2	1	2	2.67
Air Products and Chemicals	0	6	10	1	2.71

Air Products and Chemicals has a consensus target price of $323.12, suggesting a potential upside of 11.39%. Given Air Products and Chemicals’ stronger consensus rating and higher probable upside, analysts clearly believe Air Products and Chemicals is more favorable than Johnson Matthey.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Johnson Matthey	N/A	N/A	N/A
Air Products and Chemicals	16.91%	16.11%	6.92%

Volatility and Risk

Johnson Matthey has a beta of 1.15, indicating that its share price is 15% more volatile than the S&P 500. Comparatively, Air Products and Chemicals has a beta of 0.77, indicating that its share price is 23% less volatile than the S&P 500.

Summary

Air Products and Chemicals beats Johnson Matthey on 11 of the 16 factors compared between the two stocks.

About Johnson Matthey

Johnson Matthey is a global leader in science that enables a cleaner and healthier world. With over 200 years of sustained commitment to innovation and technological breakthroughs, they improve the function, performance and safety of their customers’ products. Their science has a global impact in areas such as low emission transport, pharmaceuticals, chemical processing and making the most efficient use of the planet’s natural resources. Today more than 13,000 Johnson Matthey professionals collaborate with their network of customers and partners to make a real difference to the world around us.

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.