Air Products and Chemicals (NYSE:APD – Get Free Report) and Huntsman (NYSE:HUN – Get Free Report) are both basic materials companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, risk, dividends, institutional ownership, analyst recommendations, earnings and valuation.
Institutional and Insider Ownership
81.7% of Air Products and Chemicals shares are owned by institutional investors. Comparatively, 84.8% of Huntsman shares are owned by institutional investors. 1.9% of Air Products and Chemicals shares are owned by insiders. Comparatively, 6.8% of Huntsman shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Analyst Recommendations
This is a breakdown of current ratings and target prices for Air Products and Chemicals and Huntsman, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Air Products and Chemicals | 0 | 6 | 10 | 1 | 2.71 |
| Huntsman | 4 | 8 | 1 | 1 | 1.93 |
Profitability
This table compares Air Products and Chemicals and Huntsman’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Air Products and Chemicals | -2.73% | 15.77% | 6.75% |
| Huntsman | -5.00% | -3.97% | -1.70% |
Dividends
Air Products and Chemicals pays an annual dividend of $7.24 per share and has a dividend yield of 2.4%. Huntsman pays an annual dividend of $0.35 per share and has a dividend yield of 2.5%. Air Products and Chemicals pays out -479.5% of its earnings in the form of a dividend. Huntsman pays out -21.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Air Products and Chemicals has raised its dividend for 43 consecutive years and Huntsman has raised its dividend for 4 consecutive years.
Volatility & Risk
Air Products and Chemicals has a beta of 0.8, meaning that its stock price is 20% less volatile than the S&P 500. Comparatively, Huntsman has a beta of 0.59, meaning that its stock price is 41% less volatile than the S&P 500.
Earnings & Valuation
This table compares Air Products and Chemicals and Huntsman”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Air Products and Chemicals | $12.21 billion | 5.41 | -$394.50 million | ($1.51) | -196.41 |
| Huntsman | $5.68 billion | 0.42 | -$284.00 million | ($1.64) | -8.44 |
Huntsman has lower revenue, but higher earnings than Air Products and Chemicals. Air Products and Chemicals is trading at a lower price-to-earnings ratio than Huntsman, indicating that it is currently the more affordable of the two stocks.
Summary
Air Products and Chemicals beats Huntsman on 12 of the 17 factors compared between the two stocks.
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.
About Huntsman
Huntsman Corporation manufactures and sells diversified organic chemical products worldwide. The company operates in three segments: Polyurethanes, Performance Products, and Advanced Materials. The Polyurethanes segment offers polyurethane chemicals, including methyl diphenyl diisocyanate, polyether and polyester polyols, and thermoplastic polyurethane; and aniline, benzene, nitrobenzene and other co-products. The Performance Products segment manufactures amines, such as polyetheramines, ethyleneamines, DGA Agent, JEFFCAT catalysts, and E-GRADE specialty amines and carbonates; and maleic anhydrides. The Advanced Materials segment offers epoxy, phenoxy, acrylic, polyurethane, and acrylonitrile-butadiene-based polymer formulations; and thermoset resins, curing and toughening agents, and carbon nanomaterials. The company provides pre-and post-sales technical service support to customers. Its products are used in a range of applications, including adhesives, aerospace, automotive, construction products, durable and non-durable consumer products, electronics, insulation, packaging, coatings and construction, power generation, and refining, as well as serves the elastomers, insulation, footwear, furniture, industrial, oil and gas, liquid natural gas transport, printed circuit boards, consumer, appliances, electrical power transmission and distribution, recreational sports equipment, and medical appliances markets. The company sells its products through a network of distributors and agents. Huntsman Corporation was founded in 1970 and is headquartered in The Woodlands, Texas.
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