Nufarm (NUFMF) vs. Its Peers Head to Head Review

Nufarm (OTCMKTS:NUFMF) is one of 298 public companies in the “Chemicals” industry, but how does it weigh in compared to its competitors? We will compare Nufarm to related companies based on the strength of its analyst recommendations, valuation, earnings, profitability, institutional ownership, dividends and risk.

Analyst Recommendations

This is a summary of current ratings and price targets for Nufarm and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nufarm	0	0	2	0	3.00
Nufarm Competitors	3196	12169	14275	503	2.40

As a group, “Chemicals” companies have a potential upside of 9.41%. Given Nufarm’s competitors higher probable upside, analysts plainly believe Nufarm has less favorable growth aspects than its competitors.

Insider & Institutional Ownership

14.9% of Nufarm shares are held by institutional investors. Comparatively, 47.5% of shares of all “Chemicals” companies are held by institutional investors. 13.7% of shares of all “Chemicals” companies are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Dividends

Nufarm pays an annual dividend of $0.08 per share and has a dividend yield of 4.1%. Nufarm pays out 83.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Chemicals” companies pay a dividend yield of 3.2% and pay out 104.0% of their earnings in the form of a dividend. Nufarm is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Nufarm	N/A	N/A	N/A
Nufarm Competitors	-103.27%	-11.30%	-1.82%

Valuation and Earnings

This table compares Nufarm and its competitors revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Nufarm	N/A	N/A	20.21
Nufarm Competitors	$8.08 billion	$215.11 million	-2.55

Nufarm’s competitors have higher revenue and earnings than Nufarm. Nufarm 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

Nufarm beats its competitors on 8 of the 13 factors compared.

About Nufarm

Nufarm Limited, together with its subsidiaries, develops, manufactures, and sells crop protection solutions and seed technologies in Europe, the Middle East, Africa, North America, and the Asia Pacific. The company operates through Crop Protection and Seed Technologies segments. The Crop Protection segment solutions include herbicides, insecticides, and fungicides that help growers protect crops against weeds, pests, and diseases. The Seed Technologies segment operates base seeds, bioenergy, omega-3 and seed treatment platforms, as well as sells seeds and oil based products. It also focuses on crops, such as cereals; corn; soybean; pasture, turf, and ornamentals; and trees, nuts, vines, and vegetables. In addition, the company provides seed treatment products for the protection and treatment of damage caused by insects, fungus, and disease. Further, it distributes sunflower, sorghum, and canola seeds. Nufarm Limited was founded in 1916 and is headquartered in Laverton North, Australia.