Agrium (NYSE: AGU) is one of 28 public companies in the “Agricultural Chemicals” industry, but how does it compare to its competitors? We will compare Agrium to similar companies based on the strength of its earnings, valuation, dividends, risk, institutional ownership, analyst recommendations and profitability.
Agrium pays an annual dividend of $3.50 per share and has a dividend yield of 3.3%. Agrium pays out 84.3% 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, “Agricultural Chemicals” companies pay a dividend yield of 2.8% and pay out 71.7% of their earnings in the form of a dividend. Agrium has raised its dividend for 5 consecutive years.
Volatility and Risk
Agrium has a beta of 0.62, suggesting that its share price is 38% less volatile than the S&P 500. Comparatively, Agrium’s competitors have a beta of 0.95, suggesting that their average share price is 5% less volatile than the S&P 500.
Institutional & Insider Ownership
66.3% of Agrium shares are owned by institutional investors. Comparatively, 49.0% of shares of all “Agricultural Chemicals” companies are owned by institutional investors. 16.0% of shares of all “Agricultural Chemicals” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This is a breakdown of current recommendations for Agrium and its competitors, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Agrium currently has a consensus price target of $112.50, indicating a potential upside of 4.51%. As a group, “Agricultural Chemicals” companies have a potential upside of 4.36%. Given Agrium’s stronger consensus rating and higher possible upside, equities analysts plainly believe Agrium is more favorable than its competitors.
This table compares Agrium and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Valuation and Earnings
This table compares Agrium and its competitors gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Agrium||$13.56 billion||$1.62 billion||25.94|
|Agrium Competitors||$3.75 billion||$756.62 million||15.22|
Agrium has higher revenue and earnings than its competitors. Agrium is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.
Agrium beats its competitors on 11 of the 15 factors compared.
Agrium Company Profile
Agrium Inc. is a retailer of agricultural products and services in the United States, Canada, Australia, Argentina, Brazil, Chile and Uruguay and a multi-national producer and wholesale marketer of nutrients for agricultural and industrial markets. The Company’s segments include Retail and Wholesale. As of December 31, 2016, its Retail business unit marketed crop nutrients, crop protection products, seed, merchandise, application and other agronomic services through 1,500 retail locations in the United States, Canada, Australia, Argentina, Brazil, Chile and Uruguay. Its Wholesale business unit manufactures, mines and markets a range of nutrients, including nitrogen-based, potash and phosphate-based crop nutrient products. As of December 31, 2016, its Wholesale business unit owned and operated five North American nitrogen facilities, four located in Alberta, Canada and one in Borger, Texas, United States.
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