Air Products and Chemicals (NYSE:APD – Get Free Report) and Oil-Dri Corporation Of America (NYSE:ODC – Get Free Report) are both basic materials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, profitability, earnings, risk, valuation, dividends and analyst recommendations.
Earnings and Valuation
This table compares Air Products and Chemicals and Oil-Dri Corporation Of America”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 | $12.04 billion | 4.58 | -$394.50 million | ($1.78) | -139.04 |
| Oil-Dri Corporation Of America | $485.57 million | 1.48 | $54.00 million | $3.64 | 13.52 |
Profitability
This table compares Air Products and Chemicals and Oil-Dri Corporation Of America’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Air Products and Chemicals | -3.28% | 15.18% | 6.64% |
| Oil-Dri Corporation Of America | 11.10% | 21.06% | 14.19% |
Volatility and Risk
Air Products and Chemicals has a beta of 0.86, meaning that its stock price is 14% less volatile than the S&P 500. Comparatively, Oil-Dri Corporation Of America has a beta of 0.75, meaning that its stock price is 25% less volatile than the S&P 500.
Insider and Institutional Ownership
81.7% of Air Products and Chemicals shares are held by institutional investors. Comparatively, 49.0% of Oil-Dri Corporation Of America shares are held by institutional investors. 1.9% of Air Products and Chemicals shares are held by company insiders. Comparatively, 11.7% of Oil-Dri Corporation Of America shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Dividends
Air Products and Chemicals pays an annual dividend of $7.16 per share and has a dividend yield of 2.9%. Oil-Dri Corporation Of America pays an annual dividend of $0.72 per share and has a dividend yield of 1.5%. Air Products and Chemicals pays out -402.2% of its earnings in the form of a dividend. Oil-Dri Corporation Of America pays out 19.8% 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 50 consecutive years and Oil-Dri Corporation Of America has raised its dividend for 11 consecutive years. Air Products and Chemicals is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Analyst Ratings
This is a breakdown of recent ratings and price targets for Air Products and Chemicals and Oil-Dri Corporation Of America, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Air Products and Chemicals | 2 | 6 | 7 | 1 | 2.44 |
| Oil-Dri Corporation Of America | 0 | 0 | 1 | 0 | 3.00 |
Air Products and Chemicals currently has a consensus target price of $292.47, indicating a potential upside of 18.17%. Given Air Products and Chemicals’ higher probable upside, equities research analysts clearly believe Air Products and Chemicals is more favorable than Oil-Dri Corporation Of America.
Summary
Air Products and Chemicals beats Oil-Dri Corporation Of America on 10 of the 18 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 Oil-Dri Corporation Of America
Oil-Dri Corporation of America is a manufacturer and supplier of specialty sorbent products for the pet care, animal health and nutrition, fluids purification, agricultural ingredients, sports field, industrial and automotive markets. It operates through the Business to Business Products Group and Retail and Wholesale Products Group segments. The Business to Business Products Group segment’s customers include processors and refiners of edible oils, jet fuel and biofuel, manufacturers of animal feed and agricultural chemicals, distributors of animal health and nutrition products, and marketers of consumer products. The Retail and Wholesale Products Group segment customers include retailers of cat litter and related accessories such as mass merchandisers, drugstore chains, pet specialty retail outlets, dollar stores, retail grocery stores as well as distributors of industrial cleanup and automotive products, environmental service companies, and sports field product users. The company was founded by Nick Jaffee in 1941 and is headquartered in Chicago, IL.
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