Comparing Versum Materials (VSM) and Its Rivals

Versum Materials (NYSE: VSM) is one of 47 publicly-traded companies in the “Specialty Chemicals” industry, but how does it contrast to its rivals? We will compare Versum Materials to similar businesses based on the strength of its profitability, institutional ownership, risk, valuation, dividends, earnings and analyst recommendations.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Versum Materials and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Versum Materials 0 4 6 0 2.60
Versum Materials Competitors 172 1042 1313 24 2.47

Versum Materials currently has a consensus target price of $36.11, suggesting a potential downside of 0.41%. As a group, “Specialty Chemicals” companies have a potential upside of 0.57%. Given Versum Materials’ rivals higher possible upside, analysts clearly believe Versum Materials has less favorable growth aspects than its rivals.

Insider & Institutional Ownership

90.4% of Versum Materials shares are held by institutional investors. Comparatively, 65.3% of shares of all “Specialty Chemicals” companies are held by institutional investors. 0.5% of Versum Materials shares are held by company insiders. Comparatively, 7.4% of shares of all “Specialty Chemicals” companies are held 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.

Profitability

This table compares Versum Materials and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Versum Materials 17.13% -457.02% 17.84%
Versum Materials Competitors -655.93% -4.23% 0.37%

Dividends

Versum Materials pays an annual dividend of $0.20 per share and has a dividend yield of 0.6%. Versum Materials pays out 11.4% of its earnings in the form of a dividend. As a group, “Specialty Chemicals” companies pay a dividend yield of 1.3% and pay out 26.1% of their earnings in the form of a dividend.

Valuation & Earnings

This table compares Versum Materials and its rivals revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Versum Materials $1.13 billion $193.00 million 20.60
Versum Materials Competitors $1.91 billion $115.75 million 228.89

Versum Materials’ rivals have higher revenue, but lower earnings than Versum Materials. Versum Materials 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.

Versum Materials Company Profile

Versum Materials, Inc. is a provider of solutions to the semiconductor and display industries. The Company is engaged in the development, manufacturing, transportation and handling of specialty materials. Its segments include Materials; Delivery Systems and Services (DS&S), and Corporate. The Materials segment is an integrated provider of specialty materials for the electronics industry, focusing on the integrated circuit and flat-panel display markets. The DS&S segment designs, manufactures, installs, operates, and maintains chemical and gas delivery and distribution systems for specialty gases and chemicals delivered directly to its customers’ manufacturing tools. The Company is engaged in molecular design and synthesis, purification, advanced analytics, formulation development and containers and delivery systems for the handling of high purity materials.

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