Contrasting Nufarm (NUFMF) & Its Rivals

Nufarm (OTCMKTS:NUFMF) is one of 297 publicly-traded companies in the “Chemicals” industry, but how does it compare to its competitors? We will compare Nufarm to related companies based on the strength of its analyst recommendations, dividends, profitability, institutional ownership, valuation, risk and earnings.

Institutional & Insider Ownership

14.9% of Nufarm shares are held by institutional investors. Comparatively, 47.6% of shares of all “Chemicals” companies are held by institutional investors. 13.8% of shares of all “Chemicals” companies are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Nufarm and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nufarm	N/A	N/A	N/A
Nufarm Competitors	-102.08%	-11.16%	-1.63%

Analyst Recommendations

This is a summary of current recommendations for Nufarm and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nufarm	0	0	2	0	3.00
Nufarm Competitors	3198	12168	14180	490	2.40

As a group, “Chemicals” companies have a potential upside of 7.07%. Given Nufarm’s competitors higher possible upside, analysts plainly believe Nufarm has less favorable growth aspects than its competitors.

Dividends

Nufarm pays an annual dividend of $0.08 per share and has a dividend yield of 4.1%. Nufarm pays out 83.3% 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, “Chemicals” companies pay a dividend yield of 3.2% and pay out 103.3% of their earnings in the form of a dividend. Nufarm is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Nufarm	N/A	N/A	20.21
Nufarm Competitors	$8.15 billion	$216.34 million	-4.13

Nufarm’s competitors have higher revenue and earnings than Nufarm. Nufarm 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.

Summary

Nufarm beats its competitors on 8 of the 13 factors compared.

Nufarm Company Profile

Nufarm Limited, together with its subsidiaries, develops, manufactures, and sells crop protection solutions and seed technologies in Europe, the Middle East, Africa, North America, and the Asia Pacific. The company operates through Crop Protection and Seed Technologies segments. The Crop Protection segment solutions include herbicides, insecticides, and fungicides that help growers protect crops against weeds, pests, and diseases. The Seed Technologies segment operates base seeds, bioenergy, omega-3 and seed treatment platforms, as well as sells seeds and oil based products. It also focuses on crops, such as cereals; corn; soybean; pasture, turf, and ornamentals; and trees, nuts, vines, and vegetables. In addition, the company provides seed treatment products for the protection and treatment of damage caused by insects, fungus, and disease. Further, it distributes sunflower, sorghum, and canola seeds. Nufarm Limited was founded in 1916 and is headquartered in Laverton North, Australia.