FMC (NYSE: FMC) and Basf (OTCMKTS:BASFY) are both large-cap basic materials companies, but which is the better investment? We will contrast the two companies based on the strength of their risk, analyst recommendations, dividends, valuation, profitability, earnings and institutional ownership.
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This table compares FMC and Basf’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a summary of recent ratings for FMC and Basf, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
FMC presently has a consensus price target of $100.35, indicating a potential upside of 15.89%. Given FMC’s stronger consensus rating and higher possible upside, research analysts plainly believe FMC is more favorable than Basf.
Risk & Volatility
FMC has a beta of 1.63, suggesting that its stock price is 63% more volatile than the S&P 500. Comparatively, Basf has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500.
FMC pays an annual dividend of $0.66 per share and has a dividend yield of 0.8%. Basf pays an annual dividend of $0.66 per share and has a dividend yield of 2.7%. FMC pays out 24.4% of its earnings in the form of a dividend. Basf pays out 36.3% 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. FMC has increased its dividend for 7 consecutive years.
Insider & Institutional Ownership
84.5% of FMC shares are owned by institutional investors. Comparatively, 0.5% of Basf shares are owned by institutional investors. 1.2% of FMC shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares FMC and Basf’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|FMC||$2.88 billion||4.05||$535.80 million||$2.71||31.95|
|Basf||$72.83 billion||1.22||$6.87 billion||$1.82||13.29|
Basf has higher revenue and earnings than FMC. Basf is trading at a lower price-to-earnings ratio than FMC, indicating that it is currently the more affordable of the two stocks.
FMC beats Basf on 13 of the 17 factors compared between the two stocks.
FMC Corporation, a diversified chemical company, provides solutions, applications, and products for the agricultural, consumer, and industrial markets worldwide. The company operates in two segments, FMC Agricultural Solutions and FMC Lithium. The FMC Agricultural Solutions segment develops, manufactures, markets, and sells crop protection chemicals, including insecticides, herbicides, and fungicides that are used in agriculture to enhance crop yield and quality by controlling a range of insects, weeds, and diseases, as well as in non-agricultural markets for pest control. The FMC Lithium segment manufactures lithium for use in batteries, polymers, pharmaceuticals, greases and lubricants, glass and ceramics, and other industrial uses. FMC Corporation was founded in 1883 and is headquartered in Philadelphia, Pennsylvania.
BASF SE operates as a chemical company worldwide. It operates through five segments: Chemicals, Performance Products, Functional Materials & Solutions, Agricultural Solutions, and Oil & Gas. The Chemicals segment offers solvents, plasticizers, monomers, and glues, as well as raw materials for detergents, plastics, textile fibers, paints and coatings, crop protection products, and medicines. The Performance Products segment provides dispersions and pigments, care chemicals, nutrition and health products, and performance chemicals that are used in pharmaceuticals, personal care products, and cosmetics, as well as hygiene and household products; and other products for enhancing processes in the paper industry and water treatment, as well as in oil, gas, and ore extraction. The Functional Materials & Solutions segment offers catalysts, battery materials, engineering plastics, polyurethane systems, automotive coatings, surface treatment solutions, and concrete admixtures; and tile adhesives and decorative paints for the automotive, electrical, chemical, and construction industries, as well as for household, and sports and leisure applications. The Agricultural Solutions segment provides fungicides, herbicides, and insecticides, as well as functional crop care products. The Oil & Gas segment explores for and produces oil and gas in Europe, North Africa, Russia, South America, and the Middle East. It also produces ammonia; and transports natural gas in Europe. BASF SE was founded in 1865 and is headquartered in Ludwigshafen am Rhein, Germany.