Analyzing FMC (NYSE:FMC) and Ashland Global (ASH)

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

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

Ashland Global pays an annual dividend of $1.00 per share and has a dividend yield of 1.2%. FMC pays an annual dividend of $0.66 per share and has a dividend yield of 0.8%. Ashland Global pays out 41.0% of its earnings in the form of a dividend. FMC pays out 24.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. FMC has raised its dividend for 7 consecutive years.

Volatility and Risk

Ashland Global has a beta of 1.17, suggesting that its share price is 17% more volatile than the S&P 500. Comparatively, FMC has a beta of 1.6, suggesting that its share price is 60% more volatile than the S&P 500.

Profitability

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

Insider and Institutional Ownership

92.7% of Ashland Global shares are owned by institutional investors. Comparatively, 89.9% of FMC shares are owned by institutional investors. 1.1% of Ashland Global shares are owned by company insiders. Comparatively, 1.2% of FMC shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Ratings

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

Ashland Global presently has a consensus price target of $88.00, indicating a potential upside of 4.51%. FMC has a consensus price target of $102.07, indicating a potential upside of 19.45%. Given FMC’s stronger consensus rating and higher probable upside, analysts plainly believe FMC is more favorable than Ashland Global.