Air Products and Chemicals, Inc. (APD) vs Ecolab Inc. (ECL)

Air Products and Chemicals, Inc. and Ecolab Inc. are both Specialty Chemicals companies. Ecolab Inc. is the larger, with a market value of $77.2B against $63.4B — 1.2× the size. Air Products and Chemicals, Inc. has negative trailing earnings, so its P/E is not meaningful; Ecolab Inc. trades at 37.3×. Ecolab Inc. grew revenue faster over the last twelve months: 7.11% against 4.51%. Ecolab Inc. has the higher net margin (12.6% vs −0.38%) and the higher return on invested capital (9.83% vs −1.12%). Both pay a dividend; Air Products and Chemicals, Inc. yields more (3.24% vs 1.06%). Across the 20 metrics below, Ecolab Inc. leads on 17 and Air Products and Chemicals, Inc. on 3.

Valuation

Metric APD ECL Specialty Chemicals median
P/E n/m 37.27 24.83
P/S 4.98 4.66 1.46
P/B 3.78 7.78 1.76
Price to free cash flow n/m 41.59 19.84
EV/EBITDA 83.44 22.28 13.18
EV/Sales 6.30 5.14 1.84
Earnings yield (0.08%) 2.68% 2.11%
Free cash flow yield (0.17%) 2.40% 2.29%

Profitability

Metric APD ECL Specialty Chemicals median
Gross margin 32.06% 44.11% 29.23%
Operating margin (4.71%) 16.93% 3.63%
Net margin (0.38%) 12.57% 2.89%
Free cash flow margin (0.86%) 11.20% 3.78%
Return on equity (0.28%) 21.78% 3.62%
Return on assets (0.12%) 7.89% 0.35%
Return on invested capital (1.12%) 9.83% 2.75%

Growth

Metric APD ECL Specialty Chemicals median
Revenue growth (TTM) 4.51% 7.11% 4.51%
EPS growth (last fiscal year) (110.30%) (1.22%) —
Revenue growth, 5-year CAGR 6.33% 6.40% 6.30%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric APD ECL Specialty Chemicals median
Debt to equity 1.06 1.31 0.54
Current ratio 1.08 1.84 1.94
Net debt to EBITDA 23.00 2.04 2.03

Dividend

Metric APD ECL Specialty Chemicals median
Dividend yield 3.24% 1.06% 1.69%
Payout ratio 0.69 0.51 0.25

Size

Metric APD ECL Specialty Chemicals median
Market cap 63.35b 77.19b 2.43b

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