Comparing Rayonier Advanced Materials (NYSE:RYAM) and Air Products and Chemicals (NYSE:APD)

Air Products and Chemicals (NYSE:APD) and Rayonier Advanced Materials (NYSE:RYAM) are both materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their earnings, profitability, dividends, risk, valuation, analyst recommendations and institutional ownership.

Valuation & Earnings

This table compares Air Products and Chemicals and Rayonier Advanced Materials”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Air Products and Chemicals	$12.04 billion	5.70	-$394.50 million	($0.22)	-1,401.23
Rayonier Advanced Materials	$1.47 billion	0.40	-$420.67 million	($2.10)	-4.11

Air Products and Chemicals has higher revenue and earnings than Rayonier Advanced Materials. Air Products and Chemicals is trading at a lower price-to-earnings ratio than Rayonier Advanced Materials, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Air Products and Chemicals has a beta of 0.73, indicating that its share price is 27% less volatile than the S&P 500. Comparatively, Rayonier Advanced Materials has a beta of 1.77, indicating that its share price is 77% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings and price targets for Air Products and Chemicals and Rayonier Advanced Materials, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Air Products and Chemicals	0	6	10	1	2.71
Rayonier Advanced Materials	1	1	1	0	2.00

Air Products and Chemicals presently has a consensus target price of $332.76, suggesting a potential upside of 7.95%. Rayonier Advanced Materials has a consensus target price of $13.00, suggesting a potential upside of 50.46%. Given Rayonier Advanced Materials’ higher possible upside, analysts clearly believe Rayonier Advanced Materials is more favorable than Air Products and Chemicals.

Profitability

This table compares Air Products and Chemicals and Rayonier Advanced Materials’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Air Products and Chemicals	-0.38%	16.87%	7.18%
Rayonier Advanced Materials	-9.53%	-46.19%	-7.28%

Insider and Institutional Ownership

81.7% of Air Products and Chemicals shares are held by institutional investors. Comparatively, 68.6% of Rayonier Advanced Materials shares are held by institutional investors. 1.9% of Air Products and Chemicals shares are held by company insiders. Comparatively, 3.2% of Rayonier Advanced Materials shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Air Products and Chemicals beats Rayonier Advanced Materials on 11 of the 15 factors compared between the two stocks.

About Air Products and Chemicals

Air Products and Chemicals, Inc. provides atmospheric gases, process and specialty gases, equipment, and related services in the Americas, Asia, Europe, the Middle East, India, and internationally. The company produces atmospheric gases, including oxygen, nitrogen, and argon; process gases, such as hydrogen, helium, carbon dioxide, carbon monoxide, and syngas; and specialty gases for customers in various industries, including refining, chemical, manufacturing, electronics, energy production, medical, food, and metals. It also designs and manufactures equipment for air separation, hydrocarbon recovery and purification, natural gas liquefaction, and liquid helium and liquid hydrogen transport and storage. The company was founded in 1940 and is headquartered in Allentown, Pennsylvania.

About Rayonier Advanced Materials

Rayonier Advanced Materials Inc. manufactures and sells cellulose specialty products in the United States, China, Latin America, Canada, Japan, Europe, Latin America, other Asian countries, and internationally. It operates through High Purity Cellulose, Paperboard, and High-Yield Pulp segments. The company’s products include cellulose specialties, which are natural polymers that are used as raw materials to manufacture a range of consumer-oriented products, such as liquid crystal displays, impact-resistant plastics, thickeners for food products, pharmaceuticals, cosmetics, cigarette filters, high-tenacity rayon yarn for tires and industrial hoses, food casings, paints, and lacquers. It also offers commodity products, such as commodity viscose pulp used in woven applications, including rayon textiles for clothing and other fabrics, as well as in non-woven applications comprising baby wipes, cosmetic and personal wipes, industrial wipes, and mattress ticking; and absorbent materials consisting of fluff fibers that are used as an absorbent medium in disposable baby diapers, feminine hygiene products, incontinence pads, convalescent bed pads, industrial towels and wipes, and non-woven fabrics. In addition, the company provides paperboards for packaging, printing documents, brochures, promotional materials, paperback books and catalog covers, file folders, tags, and lottery tickets; and high-yield pulps to produces hardwood aspen, maple, and birch species for paperboard, packaging, printing and writing papers, and various other paper products. The company was founded in 1926 and is headquartered in Jacksonville, Florida.