Air Products and Chemicals (NYSE:APD) and Nippon Paint (OTCMKTS:NPCPF) Head to Head Review

Nippon Paint (OTCMKTS:NPCPF) and Air Products and Chemicals (NYSE:APD) are both large-cap materials companies, but which is the better business? We will compare the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, dividends, analyst recommendations and risk.

Profitability

This table compares Nippon Paint and Air Products and Chemicals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nippon Paint	10.22%	10.65%	4.85%
Air Products and Chemicals	-0.38%	16.87%	7.18%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Nippon Paint and Air Products and Chemicals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nippon Paint	0	1	0	0	2.00
Air Products and Chemicals	0	7	10	2	2.74

Air Products and Chemicals has a consensus target price of $333.88, indicating a potential upside of 6.73%. Given Air Products and Chemicals’ stronger consensus rating and higher possible upside, analysts plainly believe Air Products and Chemicals is more favorable than Nippon Paint.

Valuation and Earnings

This table compares Nippon Paint and Air Products and Chemicals”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nippon Paint	$11.87 billion	1.56	$1.20 billion	$0.56	14.20
Air Products and Chemicals	$12.04 billion	5.79	-$394.50 million	($0.22)	-1,421.94

Nippon Paint has higher earnings, but lower revenue than Air Products and Chemicals. Air Products and Chemicals is trading at a lower price-to-earnings ratio than Nippon Paint, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Nippon Paint has a beta of 0.01, indicating that its stock price is 99% less volatile than the S&P 500. Comparatively, Air Products and Chemicals has a beta of 0.67, indicating that its stock price is 33% less volatile than the S&P 500.

Institutional and Insider Ownership

81.7% of Air Products and Chemicals shares are held by institutional investors. 1.9% of Air Products and Chemicals shares are held 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

Air Products and Chemicals beats Nippon Paint on 11 of the 15 factors compared between the two stocks.

About Nippon Paint

Nippon Paint Holdings Co., Ltd. engages in the paints and fine chemicals businesses. The company offers automotive coatings, including paints for the automotive body, including surface treatment, electrodeposition coating, intermediate coating, and finish coating; paints for plastic components, such as bumpers and interior components; trade-use paints for construction sites, including single-family detached homes, buildings, and bridges; and industrial coatings that are used in a range of products, including construction and farming machinery, exterior construction materials, office equipment, and electric home appliances. It also provides marine coatings, such as antifouling paints; treatment agents for steel and aluminum products; and paints for DIY applications comprising wallpaper, wall cloth, and wooden, steel, and concrete materials. In addition, the company offers surface treatment products comprising functional coatings, which demonstrate various functions, such as hydrophilicity and rust prevention, and substrate films; caulking agents to fill gaps between building materials; adhesives to fix flooring and building materials; and fillers used for base coatings. Further, it is involved in the investment business; manufactures and sells surface treatment agents; and sales of paints and raw materials. The company has operations in Japan, Asia, the Americas, Oceania, and internationally. The company was formerly known as Nippon Paint Co., Ltd. and changed its name to Nippon Paint Holdings Co., Ltd. in October 2014. Nippon Paint Holdings Co., Ltd. was founded in 1879 and is headquartered in Tokyo, Japan.

About Air Products and Chemicals

Air Products and Chemicals, Inc. provides atmospheric gases, process and specialty gases, equipment, and related services in the Americas, Asia, Europe, the Middle East, India, and internationally. The company produces atmospheric gases, including oxygen, nitrogen, and argon; process gases, such as hydrogen, helium, carbon dioxide, carbon monoxide, and syngas; and specialty gases for customers in various industries, including refining, chemical, manufacturing, electronics, energy production, medical, food, and metals. It also designs and manufactures equipment for air separation, hydrocarbon recovery and purification, natural gas liquefaction, and liquid helium and liquid hydrogen transport and storage. The company was founded in 1940 and is headquartered in Allentown, Pennsylvania.