Airgas (NYSE: ARG) is one of 33 public companies in the “Commodity Chemicals” industry, but how does it weigh in compared to its competitors? We will compare Airgas to related businesses based on the strength of its valuation, institutional ownership, earnings, dividends, analyst recommendations, profitability and risk.
Institutional & Insider Ownership
69.8% of shares of all “Commodity Chemicals” companies are held by institutional investors. 7.8% of shares of all “Commodity Chemicals” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Airgas pays an annual dividend of $2.40 per share and has a dividend yield of 1.7%. Airgas pays out 53.0% of its earnings in the form of a dividend. As a group, “Commodity Chemicals” companies pay a dividend yield of 1.8% and pay out 47.6% of their earnings in the form of a dividend. Airgas has raised its dividend for 14 consecutive years. Airgas lags its competitors as a dividend stock, given its lower dividend yield and higher payout ratio.
Valuation and Earnings
This table compares Airgas and its competitors top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|Airgas Competitors||$4.01 billion||$340.26 million||117.30|
Airgas’ competitors have higher revenue and earnings than Airgas. Airgas is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.
This is a summary of current recommendations for Airgas and its competitors, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
As a group, “Commodity Chemicals” companies have a potential upside of 2.70%. Given Airgas’ competitors higher possible upside, analysts clearly believe Airgas has less favorable growth aspects than its competitors.
This table compares Airgas and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Airgas competitors beat Airgas on 8 of the 9 factors compared.
Airgas, Inc. is a supplier of industrial, medical and specialty gases, and hard goods, such as welding equipment and related products. The Company is also a producer of atmospheric gases, carbon dioxide, dry ice and nitrous oxide and a supplier of safety products, refrigerants, ammonia products and process chemicals. It operates through two segments: Distribution and All Other Operations. The Distribution segment offers a portfolio of related gas and hard goods products and services to the end customers. The All Other Operations segment consists of five business units which manufacture or distribute carbon dioxide, dry ice, nitrous oxide, ammonia and refrigerant gases. It also offers supply chain management services and solutions, and product and process technical support across many customer segments. It markets its products and services through multiple sales channels, including branch-based sales representatives, retail stores and strategic customer account programs, among others.
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