Air Products & Chemicals (NYSE: APD) and Kronos Worldwide (NYSE:KRO) are both basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, valuation, risk, earnings, institutional ownership and dividends.
Risk & Volatility
Air Products & Chemicals has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500. Comparatively, Kronos Worldwide has a beta of 2.39, meaning that its share price is 139% more volatile than the S&P 500.
Air Products & Chemicals pays an annual dividend of $4.40 per share and has a dividend yield of 2.6%. Kronos Worldwide pays an annual dividend of $0.68 per share and has a dividend yield of 2.7%. Air Products & Chemicals pays out 69.7% of its earnings in the form of a dividend. Kronos Worldwide pays out 36.2% 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 & Chemicals has raised its dividend for 35 consecutive years. Kronos Worldwide is clearly the better dividend stock, given its higher yield and lower payout ratio.
Valuation & Earnings
This table compares Air Products & Chemicals and Kronos Worldwide’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Air Products & Chemicals||$8.19 billion||4.52||$3.00 billion||$6.31||26.78|
|Kronos Worldwide||$1.73 billion||1.68||$354.50 million||$1.88||13.32|
Air Products & Chemicals has higher revenue and earnings than Kronos Worldwide. Kronos Worldwide is trading at a lower price-to-earnings ratio than Air Products & Chemicals, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
86.9% of Air Products & Chemicals shares are owned by institutional investors. Comparatively, 17.3% of Kronos Worldwide shares are owned by institutional investors. 0.4% of Air Products & Chemicals shares are owned by insiders. Comparatively, 0.1% of Kronos Worldwide shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
This table compares Air Products & Chemicals and Kronos Worldwide’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Air Products & Chemicals||13.13%||14.97%||8.34%|
This is a breakdown of recent ratings and price targets for Air Products & Chemicals and Kronos Worldwide, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Air Products & Chemicals||0||3||13||0||2.81|
Air Products & Chemicals presently has a consensus price target of $181.20, indicating a potential upside of 7.23%. Kronos Worldwide has a consensus price target of $25.33, indicating a potential upside of 1.13%. Given Air Products & Chemicals’ stronger consensus rating and higher probable upside, equities analysts plainly believe Air Products & Chemicals is more favorable than Kronos Worldwide.
Air Products & Chemicals beats Kronos Worldwide on 11 of the 17 factors compared between the two stocks.
Air Products & Chemicals Company Profile
Air Products and Chemicals, Inc. provides atmospheric gases, process and specialty gases, electronics and performance materials, equipment, and services worldwide. The company produces atmospheric gases, including oxygen, nitrogen, argon, and rare gases; process gases, such as hydrogen, helium, carbon dioxide, carbon monoxide, syngas, and specialty gases; and equipment for the production or processing of gases comprising air separation units and non-cryogenic generators for customers in various industries, including metals, glass, chemical processing, electronics, energy production and refining, food processing, metallurgical, medical, and general manufacturing. 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. Air Products and Chemicals, Inc. was founded in 1940 and is headquartered in Allentown, Pennsylvania.
Kronos Worldwide Company Profile
Kronos Worldwide, Inc. produces and markets titanium dioxide pigments (TiO2) in Europe, North America, the Asia Pacific, and internationally. It produces TiO2 in two crystalline forms, rutile and anatase to impart whiteness, brightness, opacity, and durability for various products, such as paints, coatings, plastics, paper, fibers, and ceramics, as well as for various specialty products, such as inks, food, and cosmetics. The company also produces ilmenite, a raw material used directly as a feedstock by sulfate-process TiO2 plants; iron-based chemicals, which are used as treatment and conditioning agents for industrial effluents and municipal wastewater, as well as in the manufacture of iron pigments, cement, and agricultural products; titanium oxychloride for use in the formulation of pearlescent pigments, and production of electroceramic capacitors for cell phones and other electronic devices; and titanyl sulfate that is used in pearlescent pigments, natural gas pipe, and other specialty applications. In addition, it sells and provides technical services for its products. The company sells its products under the Kronos brand through distributors and agents to paint, plastics, decorative laminate, and paper manufacturers. The company is headquartered in Dallas, Texas. Kronos Worldwide, Inc. is a subsidiary of Valhi, Inc.
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