Balchem (NASDAQ: BCPC) is one of 25 public companies in the “Chemicals & allied products” industry, but how does it compare to its competitors? We will compare Balchem to related businesses based on the strength of its risk, institutional ownership, valuation, dividends, profitability, analyst recommendations and earnings.
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 1.8% and pay out 34.3% of their earnings in the form of a dividend. Balchem has raised its dividend for 7 consecutive years.
Earnings & Valuation
This table compares Balchem and its competitors gross revenue, earnings per share and valuation.
|Gross Revenue||Net Income||Price/Earnings Ratio|
|Balchem||$594.79 million||$90.07 million||38.02|
|Balchem Competitors||$7.18 billion||$618.02 million||23.08|
Balchem’s competitors have higher revenue and earnings than Balchem. Balchem 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.
Institutional & Insider Ownership
88.2% of Balchem shares are held by institutional investors. Comparatively, 76.0% of shares of all “Chemicals & allied products” companies are held by institutional investors. 1.0% of Balchem shares are held by insiders. Comparatively, 5.2% of shares of all “Chemicals & allied products” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
This is a breakdown of recent ratings for Balchem and its competitors, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Balchem presently has a consensus target price of $95.00, suggesting a potential downside of 1.25%. As a group, “Chemicals & allied products” companies have a potential upside of 23.41%. Given Balchem’s competitors stronger consensus rating and higher possible upside, analysts clearly believe Balchem has less favorable growth aspects than its competitors.
This table compares Balchem and its competitors’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Volatility & Risk
Balchem has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500. Comparatively, Balchem’s competitors have a beta of 0.97, meaning that their average share price is 3% less volatile than the S&P 500.
Balchem competitors beat Balchem on 10 of the 15 factors compared.
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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