Head to Head Review: Agrium (AGU) and Its Peers
Agrium (NYSE: AGU) is one of 28 public companies in the “Agricultural Chemicals” industry, but how does it contrast to its peers? We will compare Agrium to related companies based on the strength of its dividends, analyst recommendations, risk, valuation, profitability, earnings and institutional ownership.
This table compares Agrium and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent recommendations for Agrium and its peers, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Agrium presently has a consensus price target of $112.50, suggesting a potential upside of 3.83%. As a group, “Agricultural Chemicals” companies have a potential upside of 5.12%. Given Agrium’s peers higher probable upside, analysts clearly believe Agrium has less favorable growth aspects than its peers.
Agrium pays an annual dividend of $3.50 per share and has a dividend yield of 3.2%. 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 2.9% and pay out 71.9% of their earnings in the form of a dividend. Agrium has raised its dividend for 5 consecutive years.
Institutional & Insider Ownership
65.9% of Agrium shares are held by institutional investors. Comparatively, 49.0% of shares of all “Agricultural Chemicals” companies are held by institutional investors. 16.0% of shares of all “Agricultural Chemicals” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
Volatility and Risk
Agrium has a beta of 0.62, meaning that its stock price is 38% less volatile than the S&P 500. Comparatively, Agrium’s peers have a beta of 0.95, meaning that their average stock price is 5% less volatile than the S&P 500.
Valuation and Earnings
This table compares Agrium and its peers revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Agrium||$13.56 billion||$1.62 billion||26.11|
|Agrium Competitors||$3.75 billion||$756.62 million||15.37|
Agrium has higher revenue and earnings than its peers. Agrium 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.
Agrium beats its peers on 10 of the 15 factors compared.
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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