Analyzing Livent (NYSE:LTHM) and FMC (NYSE:FMC)

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

Profitability

This table compares Livent and FMC’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Livent 17.75% 16.97% 12.50%
FMC 11.08% 27.94% 8.11%

Institutional & Insider Ownership

98.2% of Livent shares are held by institutional investors. Comparatively, 90.8% of FMC shares are held by institutional investors. 0.7% of Livent shares are held by company insiders. Comparatively, 1.5% of FMC shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Livent and FMC’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Livent $442.50 million 2.58 $126.10 million $0.91 8.60
FMC $4.73 billion 2.66 $502.10 million $6.29 15.41

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

Dividends

FMC pays an annual dividend of $1.60 per share and has a dividend yield of 1.7%. Livent does not pay a dividend. FMC pays out 25.4% of its earnings in the form of a dividend.

Analyst Recommendations

This is a summary of current ratings for Livent and FMC, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Livent 2 4 5 0 2.27
FMC 0 3 14 0 2.82

Livent currently has a consensus target price of $13.12, suggesting a potential upside of 67.56%. FMC has a consensus target price of $100.19, suggesting a potential upside of 3.33%. Given Livent’s higher probable upside, equities analysts plainly believe Livent is more favorable than FMC.

Summary

FMC beats Livent on 10 of the 15 factors compared between the two stocks.

Livent Company Profile

Livent Corporation manufactures and sells performance lithium compounds that are used primarily in energy storage, specialty polymers, and chemical synthesis application. The company offers lithium compounds for use in applications that have specific performance requirements, including battery-grade lithium hydroxide for use in high performance lithium-ion batteries; and supplies butyllithium, which is used as a synthesizer in the production of polymers and pharmaceutical products, as well as a range of specialty lithium compounds, including high purity lithium metal, which is used in the production of lightweight materials for aerospace applications and non-rechargeable batteries. Livent Corporation was incorporated in 2018 and is headquartered in Philadelphia, Pennsylvania.

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.

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