Head-To-Head Survey: Air Liquide (OTCMKTS:AIQUY) versus Basf (OTCMKTS:BASFY)

Air Liquide (OTCMKTS:AIQUY) and Basf (OTCMKTS:BASFY) are both large-cap basic materials companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, analyst recommendations, risk, earnings, valuation, institutional ownership and dividends.

Volatility & Risk

Air Liquide has a beta of 0.73, indicating that its stock price is 27% less volatile than the S&P 500. Comparatively, Basf has a beta of 0.74, indicating that its stock price is 26% less volatile than the S&P 500.

Valuation and Earnings

This table compares Air Liquide and Basf”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Air Liquide	$30.47 billion	3.78	$3.98 billion	N/A	N/A
Basf	$67.48 billion	0.71	$1.83 billion	$0.58	23.26

Air Liquide has higher earnings, but lower revenue than Basf.

Dividends

Air Liquide pays an annual dividend of $0.51 per share and has a dividend yield of 1.3%. Basf pays an annual dividend of $0.47 per share and has a dividend yield of 3.5%. Basf pays out 81.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Air Liquide and Basf’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Air Liquide	N/A	N/A	N/A
Basf	2.91%	3.90%	1.72%

Institutional & Insider Ownership

0.0% of Air Liquide shares are held by institutional investors. Comparatively, 0.0% of Basf shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Air Liquide and Basf, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Air Liquide	1	0	2	1	2.75
Basf	1	3	4	1	2.56

Summary

Basf beats Air Liquide on 7 of the 11 factors compared between the two stocks.

About Air Liquide

L'Air Liquide S.A. provides gases, technologies, and services for the industrial and health sectors in Europe, the Americas, the Asia Pacific, the Middle East, and Africa. It operates in Gas & Services, Engineering & Construction, and Global Markets & Technologies segments. The Gas & Services segment comprises large industries business, which offers gas and energy solutions including oxygen, nitrogen, argon, hydrogen, and carbon monoxide, as well as operates cogeneration plants to supply steam and electricity to metals, chemicals, refining, and energy industries; and industrial merchant business line provides industrial gases, equipment, hardgoods, and associated services to materials and energy, automotive and manufacturing, food and pharmaceuticals, technology and research, and craftsmen and retail sectors. This segment also includes healthcare business, which provides medical gases, home healthcare services, medical equipment, and specialty ingredient to patients, healthcare professionals, and hospitals; and electronic business supply carrier gases, electronic specialty and advanced materials, equipment and installation, and service to semiconductor, flat panel, and photovoltaic markets. The Engineering & Construction segment designs, develops, and builds industrial gas production plants to third parties; and design and manufacture plants in traditional, renewable and alternative energy sectors. The Global Markets & Technologies segment delivers technological solutions, such as molecules, equipment, and services to energy transition and deep technology. This segment also invests in and operates biomethane production units; designs hydrogen refueling stations; and supplies gases for the offshore oil and gas platforms, offshore wind turbines, and cryogenic transportation by sea. L'Air Liquide S.A. was incorporated in 1902 and is headquartered in Paris, France.

About Basf

BASF SE operates as a chemical company worldwide. It operates through six segments: Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition & Care, and Agricultural Solutions. The Chemicals segment provides petrochemicals and intermediates. The Materials segment offers advanced materials and their precursors for applications and systems comprising isocyanates, polyamides, and inorganic basic products, as well as specialties for plastics and plastics processing industries. The Industrial Solutions segment develops and markets ingredients and additives for industrial applications, such as polymer dispersions, resins, additives, electronic materials, and antioxidants for automotive, plastics, paints and coatings, electronics, and energy and resource industries. The Surface Technologies segment provides automotive OEM and refinish coatings, surface treatment, catalysts, battery materials, and precious and base metal services for the automotive and chemical sectors. The Nutrition & Care segment offers ingredients for consumer goods in the areas of nutrition, home, personal care, and technical applications; and serves the food and feed producers, pharmaceutical, cosmetics, detergents, cleaners, and crop protection industries, as well as fast-moving consumer goods sector. The Agricultural Solutions segment provides seeds and seed treatment products; fungicides, herbicides, insecticides, and biological crop protection products; and digital farming solutions. The company engages in engineering and other; rental and leasing; and commodity trading activities. BASF SE was founded in 1865 and is headquartered in Ludwigshafen am Rhein, Germany.