Northern Technologies International (NASDAQ:NTIC) and Air Products and Chemicals (NYSE:APD) Head to Head Analysis

Air Products and Chemicals (NYSE:APD) and Northern Technologies International (NASDAQ:NTIC) are both basic materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, earnings, risk and valuation.

Valuation and Earnings

This table compares Air Products and Chemicals and Northern Technologies International”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Air Products and Chemicals	$12.04 billion	4.87	-$394.50 million	($1.78)	-148.04
Northern Technologies International	$84.24 million	0.98	$20,000.00	($0.04)	-218.50

Northern Technologies International has lower revenue, but higher earnings than Air Products and Chemicals. Northern Technologies International is trading at a lower price-to-earnings ratio than Air Products and Chemicals, indicating that it is currently the more affordable of the two stocks.

Dividends

Air Products and Chemicals pays an annual dividend of $7.16 per share and has a dividend yield of 2.7%. Northern Technologies International pays an annual dividend of $0.04 per share and has a dividend yield of 0.5%. Air Products and Chemicals pays out -402.2% of its earnings in the form of a dividend. Northern Technologies International pays out -100.0% 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. Air Products and Chemicals is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk & Volatility

Air Products and Chemicals has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500. Comparatively, Northern Technologies International has a beta of 0.15, meaning that its share price is 85% less volatile than the S&P 500.

Insider & Institutional Ownership

81.7% of Air Products and Chemicals shares are owned by institutional investors. Comparatively, 32.9% of Northern Technologies International shares are owned by institutional investors. 1.9% of Air Products and Chemicals shares are owned by insiders. Comparatively, 24.9% of Northern Technologies International shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Air Products and Chemicals and Northern Technologies International’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%
Northern Technologies International	-0.35%	-0.44%	-0.34%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Air Products and Chemicals and Northern Technologies International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Air Products and Chemicals	1	7	7	1	2.50
Northern Technologies International	2	0	0	0	1.00

Air Products and Chemicals presently has a consensus price target of $292.00, indicating a potential upside of 10.81%. Given Air Products and Chemicals’ stronger consensus rating and higher probable upside, research analysts clearly believe Air Products and Chemicals is more favorable than Northern Technologies International.

Summary

Air Products and Chemicals beats Northern Technologies International on 14 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 Northern Technologies International

Northern Technologies International Corporation develops and markets rust and corrosion inhibiting solutions in North America, South America, Europe, Asia, the Middle East and internationally. It offers rust and corrosion inhibiting products, such as plastic and paper packaging, liquids, coatings, rust removers, cleaners, diffusers, and engineered solutions designed for the oil and gas industry under the ZERUST brand. The company provides a portfolio of bio-based and certified compostable polymer resin compounds and finished products under the Natur-Tec brand. In addition, it offers on-site and technical consulting for rust and corrosion prevention issues. It sells its products and services to automotive, electronics, electrical, mechanical, military, retail consumer, and oil and gas markets through direct sales force, network of independent distributors, agents, manufacturer's sales representatives, and strategic partners. The company was founded in 1970 and is headquartered in Circle Pines, Minnesota.