CF Industries (CF) and Its Competitors Critical Analysis

CF Industries (NYSE: CF) is one of 21 publicly-traded companies in the “Agricultural chemicals” industry, but how does it contrast to its competitors? We will compare CF Industries to similar companies based on the strength of its dividends, institutional ownership, analyst recommendations, profitability, earnings, valuation and risk.

Dividends

CF Industries pays an annual dividend of $1.20 per share and has a dividend yield of 3.3%. CF Industries pays out -480.0% of its earnings in the form of a dividend. As a group, “Agricultural chemicals” companies pay a dividend yield of 2.2% and pay out 63.6% of their earnings in the form of a dividend. CF Industries is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a summary of current ratings and recommmendations for CF Industries and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CF Industries 3 10 2 0 1.93
CF Industries Competitors 171 572 645 38 2.39

CF Industries currently has a consensus price target of $37.54, indicating a potential upside of 1.92%. As a group, “Agricultural chemicals” companies have a potential upside of 20.22%. Given CF Industries’ competitors stronger consensus rating and higher probable upside, analysts plainly believe CF Industries has less favorable growth aspects than its competitors.

Volatility & Risk

CF Industries has a beta of 1.1, indicating that its stock price is 10% more volatile than the S&P 500. Comparatively, CF Industries’ competitors have a beta of 0.46, indicating that their average stock price is 54% less volatile than the S&P 500.

Profitability

This table compares CF Industries and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CF Industries 8.67% -0.92% -0.40%
CF Industries Competitors -1,647.82% -18.02% -10.75%

Institutional and Insider Ownership

38.0% of shares of all “Agricultural chemicals” companies are held by institutional investors. 1.0% of CF Industries shares are held by company insiders. Comparatively, 13.7% of shares of all “Agricultural chemicals” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings and Valuation

This table compares CF Industries and its competitors gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
CF Industries $4.13 billion $358.00 million -147.32
CF Industries Competitors $3.12 billion $271.73 million 0.23

CF Industries has higher revenue and earnings than its competitors. CF Industries 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.

Summary

CF Industries beats its competitors on 8 of the 15 factors compared.

About CF Industries

CF Industries Holdings, Inc. manufactures and distributes nitrogen fertilizers and other nitrogen products worldwide. The company operates through Ammonia, Granular Urea, UAN, AN, Other, and Phosphate segments. Its principal nitrogen fertilizer products include ammonia, granular urea, urea ammonium nitrate, and ammonium nitrate. The company also offers diesel exhaust fluid, urea liquor, nitric acid, and aqua ammonia, as well as compound fertilizer products with nitrogen, phosphorus, and potassium. It offers products primarily to cooperatives, independent fertilizer distributors, farmers, and industrial users. CF Industries Holdings, Inc. was founded in 1946 and is headquartered in Deerfield, Illinois.

Receive News & Ratings for CF Industries Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for CF Industries and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply