Balchem (BCPC) vs. Its Competitors Financial Review

Balchem (NASDAQ: BCPC) is one of 25 public companies in the “Chemicals & allied products” industry, but how does it contrast to its rivals? We will compare Balchem to similar companies based on the strength of its institutional ownership, risk, valuation, earnings, dividends, analyst recommendations and profitability.

Analyst Recommendations

This is a summary of current ratings and target prices for Balchem and its rivals, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Balchem 0 2 2 0 2.50
Balchem Competitors 131 561 801 34 2.48

Balchem currently has a consensus price target of $120.67, suggesting a potential upside of 20.33%. As a group, “Chemicals & allied products” companies have a potential upside of 24.22%. Given Balchem’s rivals higher probable upside, analysts clearly believe Balchem has less favorable growth aspects than its rivals.

Institutional & Insider Ownership

88.2% of Balchem shares are owned by institutional investors. Comparatively, 75.9% of shares of all “Chemicals & allied products” companies are owned by institutional investors. 1.0% of Balchem shares are owned by company insiders. Comparatively, 7.0% of shares of all “Chemicals & allied products” companies are owned by company 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.

Valuation and Earnings

This table compares Balchem and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Balchem $594.79 million $90.07 million 39.64
Balchem Competitors $7.19 billion $619.73 million 22.02

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

Dividends

Balchem pays an annual dividend of $0.42 per share and has a dividend yield of 0.4%. Balchem pays out 16.6% of its earnings in the form of a dividend. As a group, “Chemicals & allied products” companies pay a dividend yield of 1.9% and pay out 32.8% of their earnings in the form of a dividend. Balchem has increased its dividend for 7 consecutive years.

Risk and Volatility

Balchem has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500. Comparatively, Balchem’s rivals have a beta of 0.97, indicating that their average share price is 3% less volatile than the S&P 500.

Profitability

This table compares Balchem and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Balchem 15.28% 13.78% 8.90%
Balchem Competitors -96.73% 21.06% 5.32%

Summary

Balchem rivals beat Balchem on 9 of the 15 factors compared.

Balchem Company Profile

Balchem Corporation develops, manufactures, and markets specialty performance ingredients and products for the food, nutritional, feed, pharmaceutical, medical sterilization, and industrial markets in the United States and internationally. The company's Human Nutrition & Health segment supplies ingredients in the food and beverage industry. Its products include creamer and chocolate systems, dairy replacers, powdered fats, nutritional beverage bases, beverages, juice and dairy bases, ice cream bases and variegates, cereals, grain based snacks, and cereal based ingredients. This segment also offers microencapsulation solutions; and human grade choline nutrients and mineral amino acid chelated products for wellness applications. Its Animal Nutrition & Health segment provides microencapsulated products to enhance health and milk production in ruminant animals; chelation technology, which offers enhanced nutrient absorption for various species of production and companion animals; and choline chloride, a nutrient for monogastric animal health. The company's Specialty Products segment offers ethylene oxide primarily for use in the health care industry; and single use canisters with ethylene oxide for sterilizing re-usable devices. It also sells propylene oxide, a fumigant to aid in the control of insects and microbiological spoilage, as well as to reduce bacterial and mold contamination in shell and processed nut meats, processed spices, cacao beans, cocoa powder, raisins, figs, and prunes; and chelated minerals for high value crops. The company's Industrial Products segment provides choline chloride derivatives for hydraulic fracturing of shale natural gas wells; and methylamines, which are building blocks for the manufacture of choline products, as well as used in industrial applications. The company sells its products through sales force, independent distributors, and sales agents. Balchem Corporation was founded in 1967 and is headquartered in New Hampton, New York.

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