Comparing Nufarm (NUFMF) and Its Competitors

Nufarm (OTCMKTS:NUFMF) is one of 298 publicly-traded companies in the “Chemicals” industry, but how does it compare to its peers? We will compare Nufarm to similar companies based on the strength of its earnings, dividends, risk, valuation, profitability, analyst recommendations and institutional ownership.

Earnings and Valuation

This table compares Nufarm and its peers revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Nufarm	N/A	N/A	20.21
Nufarm Competitors	$8.08 billion	$215.11 million	-2.55

Nufarm’s peers have higher revenue and earnings than Nufarm. Nufarm is trading at a higher price-to-earnings ratio than its peers, indicating that it is currently more expensive than other companies in its industry.

Dividends

Nufarm pays an annual dividend of $0.08 per share and has a dividend yield of 4.1%. Nufarm pays out 83.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Chemicals” companies pay a dividend yield of 3.2% and pay out 104.0% of their earnings in the form of a dividend. Nufarm is clearly a better dividend stock than its peers, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Nufarm and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nufarm	0	0	2	0	3.00
Nufarm Competitors	3196	12169	14275	503	2.40

As a group, “Chemicals” companies have a potential upside of 9.41%. Given Nufarm’s peers higher possible upside, analysts clearly believe Nufarm has less favorable growth aspects than its peers.

Insider & Institutional Ownership

14.9% of Nufarm shares are owned by institutional investors. Comparatively, 47.5% of shares of all “Chemicals” companies are owned by institutional investors. 13.7% of shares of all “Chemicals” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Nufarm and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nufarm	N/A	N/A	N/A
Nufarm Competitors	-103.27%	-11.30%	-1.82%

Summary

Nufarm beats its peers on 8 of the 13 factors compared.

Nufarm Company Profile

Nufarm Limited, together with its subsidiaries, develops, manufactures, and sells crop protection solutions and seed technologies in Europe, the Middle East, Africa, North America, and the Asia Pacific. The company operates through Crop Protection and Seed Technologies segments. The Crop Protection segment solutions include herbicides, insecticides, and fungicides that help growers protect crops against weeds, pests, and diseases. The Seed Technologies segment operates base seeds, bioenergy, omega-3 and seed treatment platforms, as well as sells seeds and oil based products. It also focuses on crops, such as cereals; corn; soybean; pasture, turf, and ornamentals; and trees, nuts, vines, and vegetables. In addition, the company provides seed treatment products for the protection and treatment of damage caused by insects, fungus, and disease. Further, it distributes sunflower, sorghum, and canola seeds. Nufarm Limited was founded in 1916 and is headquartered in Laverton North, Australia.