Contrasting FMC (FMC) and Its Peers

FMC (NYSE: FMC) is one of 24 publicly-traded companies in the “Chemicals & allied products” industry, but how does it contrast to its competitors? We will compare FMC to related companies based on the strength of its dividends, analyst recommendations, valuation, risk, profitability, earnings and institutional ownership.

Volatility & Risk

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FMC has a beta of 1.63, suggesting that its share price is 63% more volatile than the S&P 500. Comparatively, FMC’s competitors have a beta of 1.08, suggesting that their average share price is 8% more volatile than the S&P 500.

Earnings and Valuation

This table compares FMC and its competitors revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
FMC $2.88 billion $535.80 million 30.37
FMC Competitors $7.12 billion $610.16 million 25.06

FMC’s competitors have higher revenue and earnings than FMC. FMC is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Insider and Institutional Ownership

90.5% of FMC shares are held by institutional investors. Comparatively, 76.3% of shares of all “Chemicals & allied products” companies are held by institutional investors. 1.2% of FMC shares are held by insiders. Comparatively, 5.8% of shares of all “Chemicals & allied products” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Dividends

FMC pays an annual dividend of $0.66 per share and has a dividend yield of 0.8%. FMC pays out 24.4% of its earnings in the form of a dividend. As a group, “Chemicals & allied products” companies pay a dividend yield of 1.5% and pay out 30.7% of their earnings in the form of a dividend. FMC has increased its dividend for 7 consecutive years.

Analyst Recommendations

This is a breakdown of current ratings and target prices for FMC and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FMC 0 4 14 0 2.78
FMC Competitors 101 468 689 26 2.50

FMC presently has a consensus target price of $97.89, suggesting a potential upside of 18.93%. As a group, “Chemicals & allied products” companies have a potential upside of 10.56%. Given FMC’s stronger consensus rating and higher probable upside, equities research analysts plainly believe FMC is more favorable than its competitors.

Profitability

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

Net Margins Return on Equity Return on Assets
FMC 18.61% 16.82% 5.40%
FMC Competitors -119.34% 22.18% 4.99%

Summary

FMC beats its competitors on 9 of the 15 factors compared.

About FMC

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.

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