Airgas (NYSE: ARG) and Celanese Corporation (NYSE:CE) are both basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, analyst recommendations, risk, dividends and valuation.
Valuation & Earnings
This table compares Airgas and Celanese Corporation’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Celanese Corporation||$5.86 billion||2.47||$1.17 billion||$5.73||18.46|
Celanese Corporation has higher revenue and earnings than Airgas.
Institutional & Insider Ownership
97.1% of Celanese Corporation shares are owned by institutional investors. 0.4% of Celanese Corporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
This table compares Airgas and Celanese Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Celanese Corporation pays an annual dividend of $1.84 per share and has a dividend yield of 1.7%. Airgas does not pay a dividend. Celanese Corporation pays out 32.1% of its earnings in the form of a dividend. Airgas has raised its dividend for 14 consecutive years and Celanese Corporation has raised its dividend for 5 consecutive years.
This is a summary of current ratings and target prices for Airgas and Celanese Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Celanese Corporation has a consensus target price of $107.85, suggesting a potential upside of 1.98%. Given Celanese Corporation’s higher possible upside, analysts plainly believe Celanese Corporation is more favorable than Airgas.
Celanese Corporation beats Airgas on 10 of the 12 factors compared between the two stocks.
Airgas Company Profile
Airgas, Inc. is a supplier of industrial, medical and specialty gases, and hard goods, such as welding equipment and related products. The Company is also a producer of atmospheric gases, carbon dioxide, dry ice and nitrous oxide and a supplier of safety products, refrigerants, ammonia products and process chemicals. It operates through two segments: Distribution and All Other Operations. The Distribution segment offers a portfolio of related gas and hard goods products and services to the end customers. The All Other Operations segment consists of five business units which manufacture or distribute carbon dioxide, dry ice, nitrous oxide, ammonia and refrigerant gases. It also offers supply chain management services and solutions, and product and process technical support across many customer segments. It markets its products and services through multiple sales channels, including branch-based sales representatives, retail stores and strategic customer account programs, among others.
Celanese Corporation Company Profile
Celanese Corporation (Celanese) is a technology and specialty materials company. The Company’s segments include Advanced Engineered Materials, Consumer Specialties, Industrial Specialties, Acetyl Intermediates and Other Activities. The Advanced Engineered Materials segment includes the Company’s engineered materials business and certain affiliates. The Consumer Specialties segment includes the Company’s cellulose derivatives and food ingredients businesses, which serve consumer-driven applications. The Industrial Specialties segment includes the Company’s emulsion polymers and ethylene vinyl acetate (EVA) polymers businesses. The Acetyl Intermediates segment includes the Company’s intermediate chemistry business, which produces and supplies acetyl products, including acetic acid, vinyl acetate monomer (VAM), acetic anhydride and acetate esters. The Company has operations in North America, Europe and Asia. As of December 31, 2016, the Company had 30 global production facilities.
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