Reviewing Nutrien (NTR) & The Competition

Nutrien (NYSE:NTR) is one of 295 public companies in the “Chemicals” industry, but how does it weigh in compared to its competitors? We will compare Nutrien to related companies based on the strength of its valuation, institutional ownership, analyst recommendations, earnings, dividends, risk and profitability.

Insider & Institutional Ownership

63.1% of Nutrien shares are held by institutional investors. Comparatively, 48.0% of shares of all “Chemicals” companies are held by institutional investors. 3.1% of Nutrien shares are held by company insiders. Comparatively, 14.1% of shares of all “Chemicals” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk & Volatility

Nutrien has a beta of 0.67, indicating that its stock price is 33% less volatile than the S&P 500. Comparatively, Nutrien’s competitors have a beta of 0.94, indicating that their average stock price is 6% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Nutrien and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nutrien	1	6	16	0	2.65
Nutrien Competitors	3239	12187	14104	516	2.40

Nutrien currently has a consensus price target of $79.24, indicating a potential upside of 14.54%. As a group, “Chemicals” companies have a potential upside of 6.78%. Given Nutrien’s stronger consensus rating and higher probable upside, equities analysts clearly believe Nutrien is more favorable than its competitors.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Nutrien	8.44%	8.88%	4.27%
Nutrien Competitors	-61.34%	1.24%	-1.42%

Dividends

Nutrien pays an annual dividend of $2.20 per share and has a dividend yield of 3.2%. Nutrien pays out 44.5% of its earnings in the form of a dividend. As a group, “Chemicals” companies pay a dividend yield of 3.1% and pay out 107.6% of their earnings in the form of a dividend. Nutrien has increased its dividend for 7 consecutive years. Nutrien is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Earnings and Valuation

This table compares Nutrien and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Nutrien	$26.89 billion	$2.27 billion	14.00
Nutrien Competitors	$6.36 billion	$222.31 million	-3.43

Nutrien has higher revenue and earnings than its competitors. Nutrien 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

Nutrien beats its competitors on 12 of the 15 factors compared.

Nutrien Company Profile

Nutrien Ltd. provides crop inputs and services. The company operates through four segments: Retail, Potash, Nitrogen, and Phosphate. The Retail segment distributes crop nutrients, crop protection products, seeds, and merchandise products. The Potash segment provides granular and standard potash products. The Nitrogen segment offers ammonia, urea, environmentally smart nitrogen, nitrogen solutions, nitrates, and sulfates. The Phosphate segment provides solid fertilizer, liquid fertilizer, and industrial and feed products. In addition, it provides services directly to growers through a network of farm centers in North America, South America, and Australia. The company is headquartered in Saskatoon, Canada.