Financial Contrast: FMC (NYSE:FMC) versus Livent (NYSE:LTHM)

FMC (NYSE:FMC) and Livent (NYSE:LTHM) are both basic materials companies, but which is the better investment? We will contrast the two companies based on the strength of their dividends, institutional ownership, valuation, profitability, earnings, risk and analyst recommendations.

Profitability

This table compares FMC and Livent’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
FMC 11.08% 27.94% 8.11%
Livent 17.75% 16.97% 12.50%

Valuation and Earnings

This table compares FMC and Livent’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
FMC $4.73 billion 2.68 $502.10 million $6.29 15.55
Livent $442.50 million 2.77 $126.10 million $0.91 9.24

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.

Institutional & Insider Ownership

88.8% of FMC shares are owned by institutional investors. Comparatively, 98.1% of Livent shares are owned by institutional investors. 1.5% of FMC shares are owned by company insiders. Comparatively, 0.7% of Livent shares are owned 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.

Volatility and Risk

FMC has a beta of 1.5, meaning that its share price is 50% more volatile than the S&P 500. Comparatively, Livent has a beta of 2.26, meaning that its share price is 126% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for FMC and Livent, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
FMC 0 3 14 0 2.82
Livent 2 4 4 0 2.20

FMC presently has a consensus price target of $100.19, indicating a potential upside of 2.41%. Livent has a consensus price target of $12.01, indicating a potential upside of 42.81%. Given Livent’s higher possible upside, analysts plainly believe Livent is more favorable than FMC.

Summary

FMC beats Livent on 8 of the 14 factors compared between the two stocks.

FMC Company Profile

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 Company Profile

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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