Comparing Ecolab (ECL) & The Competition

Ecolab (NYSE:ECL) is one of 295 publicly-traded companies in the “Chemicals” industry, but how does it contrast to its competitors? We will compare Ecolab to similar companies based on the strength of its earnings, profitability, institutional ownership, analyst recommendations, dividends, valuation and risk.

Dividends

Ecolab pays an annual dividend of $2.92 per share and has a dividend yield of 1.0%. Ecolab pays out 39.7% of its earnings in the form of a dividend. As a group, “Chemicals” companies pay a dividend yield of 3.1% and pay out 104.5% of their earnings in the form of a dividend. Ecolab has increased its dividend for 33 consecutive years.

Insider & Institutional Ownership

74.9% of Ecolab shares are owned by institutional investors. Comparatively, 48.0% of shares of all “Chemicals” companies are owned by institutional investors. 0.5% of Ecolab shares are owned by insiders. Comparatively, 13.9% of shares of all “Chemicals” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Ecolab and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Ecolab	$16.08 billion	$2.08 billion	41.68
Ecolab Competitors	$6.41 billion	$230.87 million	9.87

Ecolab has higher revenue and earnings than its competitors. Ecolab 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.

Volatility & Risk

Ecolab has a beta of 0.85, suggesting that its share price is 15% less volatile than the S&P 500. Comparatively, Ecolab’s competitors have a beta of 0.93, suggesting that their average share price is 7% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Ecolab	11.99%	22.57%	8.23%
Ecolab Competitors	-59.13%	-0.46%	-1.40%

Analyst Recommendations

This is a breakdown of recent ratings for Ecolab and its competitors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ecolab	0	3	18	1	2.91
Ecolab Competitors	3259	12228	14147	520	2.40

Ecolab currently has a consensus price target of $328.58, indicating a potential upside of 7.26%. As a group, “Chemicals” companies have a potential upside of 7.27%. Given Ecolab’s competitors higher possible upside, analysts clearly believe Ecolab has less favorable growth aspects than its competitors.

Summary

Ecolab beats its competitors on 11 of the 15 factors compared.

About Ecolab

Ecolab Inc. provides water, hygiene, cleaning and infection-prevention products and services to businesses and institutions. Its solutions help customers manage water use, maintain sanitary environments and support operational efficiency. The company serves a range of industries, including food and beverage, foodservice, hospitality, healthcare, life sciences and manufacturing. Its offerings include cleaning and sanitizing products, water-treatment programs, pest-elimination services, and related monitoring and consulting support.