Reviewing CF Industries (NYSE:CF) & Its Peers

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

Dividends

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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 rivals, given its higher yield and lower payout ratio.

Profitability

This table compares CF Industries and its rivals’ 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%

Insider & Institutional 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 endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares CF Industries and its rivals 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 rivals. CF Industries is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Analyst Ratings

This is a breakdown of recent ratings for CF Industries and its rivals, as provided 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 presently 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’ rivals stronger consensus rating and higher possible upside, analysts plainly believe CF Industries has less favorable growth aspects than its rivals.

Risk and Volatility

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

Summary

CF Industries beats its rivals 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.

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