Reviewing FMC (NYSE:FMC) and Loop Industries (NYSE:LOOP)

FMC (NYSE:FMC) and Loop Industries (NASDAQ:LOOP) are both basic materials companies, but which is the better stock? We will compare the two companies based on the strength of their valuation, analyst recommendations, institutional ownership, dividends, profitability, earnings and risk.

Dividends

FMC pays an annual dividend of $1.60 per share and has a dividend yield of 1.9%. Loop Industries does not pay a dividend. FMC pays out 25.4% of its earnings in the form of a dividend.

Valuation and Earnings

This table compares FMC and Loop Industries’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
FMC $4.73 billion 2.33 $502.10 million $6.29 13.32
Loop Industries N/A N/A -$17.54 million ($0.39) -31.00

FMC has higher revenue and earnings than Loop Industries. Loop Industries is trading at a lower price-to-earnings ratio than FMC, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares FMC and Loop Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FMC 9.57% 27.53% 8.54%
Loop Industries N/A -292.60% -117.38%

Analyst Recommendations

This is a summary of current ratings and recommmendations for FMC and Loop Industries, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FMC 0 3 8 0 2.73
Loop Industries 0 0 1 0 3.00

FMC currently has a consensus target price of $94.73, suggesting a potential upside of 13.04%. Loop Industries has a consensus target price of $12.00, suggesting a potential downside of 0.74%. Given FMC’s higher possible upside, equities analysts clearly believe FMC is more favorable than Loop Industries.

Volatility and Risk

FMC has a beta of 1.51, indicating that its share price is 51% more volatile than the S&P 500. Comparatively, Loop Industries has a beta of 0.59, indicating that its share price is 41% less volatile than the S&P 500.

Insider and Institutional Ownership

89.9% of FMC shares are owned by institutional investors. Comparatively, 4.9% of Loop Industries shares are owned by institutional investors. 1.5% of FMC shares are owned by company insiders. Comparatively, 55.1% of Loop Industries shares are owned 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.

Summary

FMC beats Loop Industries on 12 of the 15 factors compared between the two stocks.

FMC Company Profile

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 applications. FMC Corporation was founded in 1883 and is headquartered in Philadelphia, Pennsylvania.

Loop Industries Company Profile

Loop Industries, Inc. focuses on depolymerizing waste polyethylene terephthalate (PET) plastics and polyester fibers into base building blocks. It re-polymerized monomers into virgin-quality PET plastic for use in food-grade plastic packaging, such as water and soda bottles, as well as polyester fibers for textile applications. The company was founded in 2014 and is based in Terrebonne, Canada.

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