Comparing Innophos Holdings (NASDAQ:IPHS) & Its Peers

Innophos Holdings (NASDAQ: IPHS) is one of 39 publicly-traded companies in the “Commodity Chemicals” industry, but how does it compare to its competitors? We will compare Innophos Holdings to similar companies based on the strength of its valuation, dividends, institutional ownership, earnings, risk, profitability and analyst recommendations.

Volatility & Risk

Innophos Holdings has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500. Comparatively, Innophos Holdings’ competitors have a beta of 1.12, suggesting that their average share price is 12% more volatile than the S&P 500.

Dividends

Innophos Holdings pays an annual dividend of $1.92 per share and has a dividend yield of 4.4%. Innophos Holdings pays out 88.1% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. 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.

Profitability

This table compares Innophos Holdings and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Innophos Holdings 6.19% 13.90% 7.26%
Innophos Holdings Competitors -23.28% 23.98% 5.99%

Valuation & Earnings

This table compares Innophos Holdings and its competitors revenue, earnings per share (EPS) and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Innophos Holdings $725.34 million $47.97 million 19.97
Innophos Holdings Competitors $4.14 billion $352.97 million 116.02

Innophos Holdings’ competitors have higher revenue and earnings than Innophos Holdings. Innophos Holdings 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.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Innophos Holdings and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Innophos Holdings 0 1 1 0 2.50
Innophos Holdings Competitors 114 913 1350 40 2.54

Innophos Holdings currently has a consensus price target of $56.00, indicating a potential upside of 28.65%. As a group, “Commodity Chemicals” companies have a potential upside of 2.16%. Given Innophos Holdings’ higher probable upside, equities research analysts plainly believe Innophos Holdings is more favorable than its competitors.

Institutional and Insider Ownership

94.5% of Innophos Holdings shares are held by institutional investors. Comparatively, 69.1% of shares of all “Commodity Chemicals” companies are held by institutional investors. 2.3% of Innophos Holdings shares are held by company insiders. Comparatively, 8.2% of shares of all “Commodity Chemicals” companies 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.

Summary

Innophos Holdings competitors beat Innophos Holdings on 10 of the 15 factors compared.

Innophos Holdings Company Profile

Innophos Holdings, Inc. is a producer of nutritional specialty ingredients with applications in food, beverage, dietary supplements, pharmaceutical, oral care and industrial end markets. The Company also provides bioactive mineral and nutritional ingredients. The Company’s segments include Specialty Phosphates US & Canada, Specialty Phosphates Mexico, and Granular Triple Super Phosphate (GTSP) & Other. The Company has four principal product lines: Specialty Ingredients; Food and Technical Grade Purified Phosphoric Acid (PPA); Technical Grade Sodium Tripolyphosphate (STPP), & Detergent Grade PPA, and GTSP & Other. The Company’s bioactive mineral ingredients are mineral-based ingredients for food, beverage and dietary supplement end markets that are manufactured to be readily digestible. The Company has its manufacturing facilities located throughout the United States, Canada, Mexico and China.

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