HeadHead Contrast: Nexeo Solutions (NXEO) vs. FMC (FMC)

Nexeo Solutions (NASDAQ: NXEO) 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 earnings, institutional ownership, dividends, risk, valuation, profitability and analyst recommendations.

Earnings & Valuation

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This table compares Nexeo Solutions and FMC’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nexeo Solutions $3.64 billion 0.24 $14.40 million $0.33 29.55
FMC $2.88 billion 4.32 $535.80 million $2.71 34.10

FMC has lower revenue, but higher earnings than Nexeo Solutions. Nexeo Solutions 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 $0.66 per share and has a dividend yield of 0.7%. Nexeo Solutions does not pay a dividend. FMC pays out 24.4% of its earnings in the form of a dividend. FMC has raised its dividend for 7 consecutive years.

Volatility & Risk

Nexeo Solutions has a beta of 0.35, indicating that its share price is 65% less volatile than the S&P 500. Comparatively, FMC has a beta of 1.62, indicating that its share price is 62% more volatile than the S&P 500.

Insider & Institutional Ownership

96.4% of Nexeo Solutions shares are owned by institutional investors. Comparatively, 88.2% of FMC shares are owned by institutional investors. 0.6% of Nexeo Solutions shares are owned by company insiders. Comparatively, 1.2% of FMC shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

Net Margins Return on Equity Return on Assets
Nexeo Solutions 1.30% 11.16% 2.01%
FMC 26.54% 22.69% 7.14%

Analyst Ratings

This is a breakdown of current ratings and target prices for Nexeo Solutions and FMC, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nexeo Solutions 0 2 2 0 2.50
FMC 0 2 15 0 2.88

Nexeo Solutions currently has a consensus price target of $11.17, suggesting a potential upside of 14.53%. FMC has a consensus price target of $100.35, suggesting a potential upside of 8.61%. Given Nexeo Solutions’ higher possible upside, equities analysts plainly believe Nexeo Solutions is more favorable than FMC.

Summary

FMC beats Nexeo Solutions on 13 of the 17 factors compared between the two stocks.

About Nexeo Solutions

Nexeo Solutions, Inc. operates as a chemical and plastic products distributor in North America, Europe, the Middle East, Africa, and Asia. The company operates through Chemicals, Plastics, and Environmental Services segments. It provides approximately 22,000 products used in various industries, including household, industrial and institutional, lubricants, architectural coatings, adhesives, sealants, elastomers, automotive, healthcare, personal care, oil and gas, and construction. The company was formerly known as WL Ross Holding Corp. and changed its name to Nexeo Solutions, Inc. in June 2016. Nexeo Solutions, Inc. was founded in 2014 and is based in The Woodlands, Texas.

About FMC

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 uses. FMC Corporation was founded in 1883 and is headquartered in Philadelphia, Pennsylvania.