Financial Comparison: Versum Materials (VSM) vs. Its Rivals

Versum Materials (NYSE: VSM) is one of 45 public companies in the “Specialty Chemicals” industry, but how does it compare to its rivals? We will compare Versum Materials to similar companies based on the strength of its valuation, dividends, institutional ownership, risk, earnings, profitability and analyst recommendations.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Versum Materials and its rivals, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Versum Materials 0 4 6 0 2.60
Versum Materials Competitors 169 1024 1279 24 2.46

Versum Materials presently has a consensus price target of $36.11, suggesting a potential downside of 9.31%. As a group, “Specialty Chemicals” companies have a potential downside of 1.24%. Given Versum Materials’ rivals higher probable upside, analysts plainly believe Versum Materials has less favorable growth aspects than its rivals.

Dividends

Versum Materials pays an annual dividend of $0.20 per share and has a dividend yield of 0.5%. Versum Materials pays out 11.3% of its earnings in the form of a dividend. As a group, “Specialty Chemicals” companies pay a dividend yield of 1.3% and pay out 25.7% of their earnings in the form of a dividend.

Volatility & Risk

Versum Materials has a beta of 1.62, suggesting that its stock price is 62% more volatile than the S&P 500. Comparatively, Versum Materials’ rivals have a beta of 1.43, suggesting that their average stock price is 43% more volatile than the S&P 500.

Profitability

This table compares Versum Materials and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Versum Materials 17.13% -457.02% 17.84%
Versum Materials Competitors -7.17% -0.69% 3.50%

Institutional and Insider Ownership

90.7% of Versum Materials shares are owned by institutional investors. Comparatively, 66.5% of shares of all “Specialty Chemicals” companies are owned by institutional investors. 0.5% of Versum Materials shares are owned by company insiders. Comparatively, 7.4% of shares of all “Specialty Chemicals” companies are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Versum Materials and its rivals gross revenue, earnings per share and valuation.

Gross Revenue NetIncome Price/Earnings Ratio
Versum Materials $1.13 billion $193.00 million 22.50
Versum Materials Competitors $1.91 billion $115.75 million 248.49

Versum Materials’ rivals have higher revenue, but lower earnings than Versum Materials. Versum Materials is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Summary

Versum Materials beats its rivals on 8 of the 15 factors compared.

About Versum Materials

Versum Materials, Inc. is a provider of solutions to the semiconductor and display industries. The Company is engaged in the development, manufacturing, transportation and handling of specialty materials. Its segments include Materials; Delivery Systems and Services (DS&S), and Corporate. The Materials segment is an integrated provider of specialty materials for the electronics industry, focusing on the integrated circuit and flat-panel display markets. The DS&S segment designs, manufactures, installs, operates, and maintains chemical and gas delivery and distribution systems for specialty gases and chemicals delivered directly to its customers’ manufacturing tools. The Company is engaged in molecular design and synthesis, purification, advanced analytics, formulation development and containers and delivery systems for the handling of high purity materials.

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