FMC (NYSE:FMC) and Livent (NYSE:LTHM) are both basic materials companies, but which is the better stock? We will contrast the two companies based on the strength of their valuation, risk, earnings, institutional ownership, profitability, dividends and analyst recommendations.
FMC pays an annual dividend of $1.60 per share and has a dividend yield of 1.6%. Livent does not pay a dividend. FMC pays out 25.4% of its earnings in the form of a dividend.
This table compares FMC and Livent’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
90.4% of FMC shares are held by institutional investors. Comparatively, 96.7% of Livent shares are held by institutional investors. 1.5% of FMC shares are held by insiders. Comparatively, 0.7% of Livent shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Earnings and Valuation
This table compares FMC and Livent’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|FMC||$4.73 billion||2.66||$502.10 million||$6.29||15.42|
|Livent||$442.50 million||2.67||$126.10 million||$0.91||8.88|
FMC has higher revenue and earnings than Livent. Livent is trading at a lower price-to-earnings ratio than FMC, indicating that it is currently the more affordable of the two stocks.
This is a breakdown of recent ratings and target prices for FMC and Livent, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
FMC currently has a consensus target price of $100.19, indicating a potential upside of 3.29%. Livent has a consensus target price of $13.12, indicating a potential upside of 62.38%. Given Livent’s higher possible upside, analysts clearly believe Livent is more favorable than FMC.
FMC beats Livent on 9 of the 15 factors compared between the two stocks.
FMC Corporation, a diversified chemical company, provides solutions, applications, and products for the agricultural, consumer, and industrial markets worldwide. The company operates in two segments, FMC Agricultural Solutions and FMC Lithium. The FMC Agricultural Solutions segment develops, manufactures, markets, and sells crop protection chemicals, including insecticides, herbicides, and fungicides that are used in agriculture to enhance crop yield and quality by controlling a range of insects, weeds, and diseases, as well as in non-agricultural markets for pest control. The FMC Lithium segment manufactures lithium for use in batteries, polymers, pharmaceuticals, greases and lubricants, glass and ceramics, and other industrial applications. FMC Corporation was founded in 1883 and is headquartered in Philadelphia, Pennsylvania.
Livent Corporation manufactures and sells performance lithium compounds that are used primarily in energy storage, specialty polymers, and chemical synthesis application. The company offers lithium compounds for use in applications that have specific performance requirements, including battery-grade lithium hydroxide for use in high performance lithium-ion batteries; and supplies butyllithium, which is used as a synthesizer in the production of polymers and pharmaceutical products, as well as a range of specialty lithium compounds, including high purity lithium metal, which is used in the production of lightweight materials for aerospace applications and non-rechargeable batteries. Livent Corporation was incorporated in 2018 and is headquartered in Philadelphia, Pennsylvania.
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