Methanex (NASDAQ:MEOH) vs. Air Liquide (OTCMKTS:AIQUY) Critical Analysis

Air Liquide (OTCMKTS:AIQUY) and Methanex (NASDAQ:MEOH) are both basic materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, valuation, risk, institutional ownership, profitability and dividends.

Risk and Volatility

Air Liquide has a beta of 0.8, suggesting that its stock price is 20% less volatile than the S&P 500. Comparatively, Methanex has a beta of 0.56, suggesting that its stock price is 44% less volatile than the S&P 500.

Insider & Institutional Ownership

0.0% of Air Liquide shares are held by institutional investors. Comparatively, 73.5% of Methanex shares are held by institutional investors. 1.0% of Methanex shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Dividends

Air Liquide pays an annual dividend of $0.48 per share and has a dividend yield of 1.1%. Methanex pays an annual dividend of $0.74 per share and has a dividend yield of 1.2%. Methanex pays out 65.5% of its earnings in the form of a dividend. Methanex has raised its dividend for 4 consecutive years. Methanex is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Air Liquide and Methanex’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Air Liquide	N/A	N/A	N/A
Methanex	2.21%	5.35%	2.03%

Analyst Recommendations

This is a breakdown of recent recommendations for Air Liquide and Methanex, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Air Liquide	1	2	1	1	2.40
Methanex	1	4	6	1	2.58

Methanex has a consensus price target of $55.50, suggesting a potential downside of 7.11%. Given Methanex’s stronger consensus rating and higher possible upside, analysts plainly believe Methanex is more favorable than Air Liquide.

Valuation and Earnings

This table compares Air Liquide and Methanex”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Air Liquide	$30.47 billion	4.21	$3.98 billion	N/A	N/A
Methanex	$3.59 billion	1.29	$79.88 million	$1.13	52.88

Air Liquide has higher revenue and earnings than Methanex.

Summary

Methanex beats Air Liquide on 10 of the 15 factors compared between the two stocks.

About Air Liquide

L'Air Liquide S.A. provides gases, technologies, and services for the industrial and health sectors in Europe, the Americas, the Asia Pacific, the Middle East, and Africa. It operates in Gas & Services, Engineering & Construction, and Global Markets & Technologies segments. The Gas & Services segment comprises large industries business, which offers gas and energy solutions including oxygen, nitrogen, argon, hydrogen, and carbon monoxide, as well as operates cogeneration plants to supply steam and electricity to metals, chemicals, refining, and energy industries; and industrial merchant business line provides industrial gases, equipment, hardgoods, and associated services to materials and energy, automotive and manufacturing, food and pharmaceuticals, technology and research, and craftsmen and retail sectors. This segment also includes healthcare business, which provides medical gases, home healthcare services, medical equipment, and specialty ingredient to patients, healthcare professionals, and hospitals; and electronic business supply carrier gases, electronic specialty and advanced materials, equipment and installation, and service to semiconductor, flat panel, and photovoltaic markets. The Engineering & Construction segment designs, develops, and builds industrial gas production plants to third parties; and design and manufacture plants in traditional, renewable and alternative energy sectors. The Global Markets & Technologies segment delivers technological solutions, such as molecules, equipment, and services to energy transition and deep technology. This segment also invests in and operates biomethane production units; designs hydrogen refueling stations; and supplies gases for the offshore oil and gas platforms, offshore wind turbines, and cryogenic transportation by sea. L'Air Liquide S.A. was incorporated in 1902 and is headquartered in Paris, France.

About Methanex

Methanex Corporation produces and supplies methanol in China, Europe, the United States, South America, South Korea, Canada, and Asia. The company also purchases methanol produced by others under methanol offtake contracts and on the spot market. In addition, it owns and leases storage and terminal facilities. The company owns and manages a fleet of approximately 30 ocean-going vessels. It serves chemical and petrochemical producers. Methanex Corporation was incorporated in 1968 and is headquartered in Vancouver, Canada.