Air Products and Chemicals, Inc. (APD) vs RPM International Inc. (RPM)

Air Products and Chemicals, Inc. and RPM International Inc. are both Specialty Chemicals companies. Air Products and Chemicals, Inc. is the larger, with a market value of $66.1B against $12.8B — 5.2× the size. Air Products and Chemicals, Inc. has negative trailing earnings, so its P/E is not meaningful; RPM International Inc. trades at 18.4×. RPM International Inc. grew revenue faster over the last twelve months: 5.96% against 4.51%. RPM International Inc. has the higher net margin (8.63% vs −0.38%) and the higher return on invested capital (11.2% vs −1.12%). Both pay a dividend; Air Products and Chemicals, Inc. yields more (2.41% vs 2.17%). Across the 21 metrics below, RPM International Inc. leads on 19 and Air Products and Chemicals, Inc. on 2.

Valuation

Metric APD RPM Specialty Chemicals median
P/E n/m 18.38 25.37
P/S 5.30 1.59 1.46
P/B 4.02 3.63 1.84
Price to free cash flow n/m 16.71 21.16
EV/EBITDA 87.62 12.02 12.82
EV/Sales 6.61 1.85 1.85
Earnings yield (0.07%) 5.44% 2.11%
Free cash flow yield (0.16%) 5.98% 2.16%

Profitability

Metric APD RPM Specialty Chemicals median
Gross margin 32.06% 41.17% 29.23%
Operating margin (4.71%) 12.56% 3.63%
Net margin (0.38%) 8.63% 2.89%
Free cash flow margin (0.86%) 9.50% 3.76%
Return on equity (0.28%) 21.04% 3.62%
Return on assets (0.12%) 8.50% 0.35%
Return on invested capital (1.12%) 11.22% 2.75%

Growth

Metric APD RPM Specialty Chemicals median
Revenue growth (TTM) 4.51% 5.96% 4.51%
EPS growth (last fiscal year) (110.30%) (3.36%) (14.40%)
Revenue growth, 5-year CAGR 6.33% 5.19% 6.30%
Net income growth, 5-year CAGR 0.00% 5.73% 0.00%

Health

Metric APD RPM Specialty Chemicals median
Debt to equity 1.06 0.69 0.54
Current ratio 1.08 1.76 1.94
Net debt to EBITDA 23.00 1.87 2.03

Dividend

Metric APD RPM Specialty Chemicals median
Dividend yield 2.41% 2.17% 1.73%
Payout ratio — 0.40 0.41

Size

Metric APD RPM Specialty Chemicals median
Market cap 66.05b 12.76b 2.41b

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