Home > Comparison > Basic Materials > APD vs DD
The strategic rivalry between Air Products and Chemicals, Inc. and DuPont de Nemours, Inc. shapes the specialty chemicals sector’s future. Air Products operates as a global leader in atmospheric and process gases with capital-intensive infrastructure. DuPont offers technology-driven materials and integrated solutions across diverse industrial applications. This analysis pits capital-intensive scale against innovation-driven diversification to identify which trajectory delivers superior risk-adjusted returns for a balanced portfolio.
Table of contents
Companies Overview
Air Products and Chemicals, Inc. and DuPont de Nemours, Inc. both play pivotal roles in the specialty chemicals market.
Air Products and Chemicals, Inc.: Global Supplier of Industrial Gases
Air Products and Chemicals dominates the atmospheric and specialty gases market. Its core revenue stems from supplying oxygen, nitrogen, argon, hydrogen, and related equipment worldwide. In 2026, it strategically emphasizes hydrogen compression systems through collaboration with Baker Hughes, aiming to lead in energy transition technologies.
DuPont de Nemours, Inc.: Innovation Leader in Specialty Materials
DuPont de Nemours delivers technology-based materials and solutions across electronics, mobility, and water protection sectors. It generates revenue by offering advanced materials for semiconductors, industrial coatings, and safety systems. Its 2026 focus sharpens on expanding engineered products and integrated systems, targeting diverse end-markets including electronics and renewable energy.
Strategic Collision: Similarities & Divergences
Both companies operate in specialty chemicals but follow distinct philosophies. Air Products leans on a closed ecosystem centered on industrial gases, while DuPont pursues an open innovation model across multiple material technologies. Their primary battleground is advanced industrial and energy markets. This divergence creates distinct investment profiles: steady, infrastructure-heavy growth versus diversified, innovation-driven expansion.
Income Statement Comparison
This data dissects the core profitability and scalability of both corporate engines to reveal who dominates the bottom line:
| Metric | Air Products and Chemicals, Inc. (APD) | DuPont de Nemours, Inc. (DD) |
|---|---|---|
| Revenue | 12.0B | 12.4B |
| Cost of Revenue | 8.3B | 8.5B |
| Operating Expenses | 4.7B | 2.1B |
| Gross Profit | 3.8B | 3.9B |
| EBITDA | 1.3B | 2.8B |
| EBIT | -227M | 1.6B |
| Interest Expense | 214M | 366M |
| Net Income | -395M | 703M |
| EPS | -1.77 | 1.68 |
| Fiscal Year | 2025 | 2024 |
Income Statement Analysis: The Bottom-Line Duel
This income statement comparison reveals which company runs a more efficient and profitable corporate engine.
Air Products and Chemicals, Inc. (APD) Analysis
APD’s revenue grew modestly by 16.6% from 2021 to 2025 but declined slightly by 0.5% in the last year. Gross margin remains strong at 31.4%, yet the company swung to a net loss of $394M in 2025 from a $3.8B profit in 2024. The deteriorating EBIT and net margins highlight severe profitability challenges and weakening momentum.
DuPont de Nemours, Inc. (DD) Analysis
DD’s revenue declined 13.6% over five years but rose 2.6% in the latest year to $12.4B. The gross margin holds steady at 31.6%, while EBIT margin improved sharply to 12.6%, driving net income growth of 124% over five years and a $703M profit in 2024. DD’s earnings momentum and margin expansion signal improving operational efficiency.
Profitability Resilience vs. Earnings Recovery
DD clearly outperforms APD in profitability and growth metrics despite its revenue contraction. DD’s positive EBIT and net margins contrast sharply with APD’s recent losses and margin erosion. For investors, DD’s profile offers a more attractive combination of margin stability and earnings growth amid market challenges.
Financial Ratios Comparison
These vital ratios act as a diagnostic tool to expose underlying fiscal health, valuation premiums, and capital efficiency for a clear side-by-side analysis:
| Ratios | Air Products and Chemicals, Inc. (APD) | DuPont de Nemours, Inc. (DD) |
|---|---|---|
| ROE | -2.63% (2025) | 3.01% (2024) |
| ROIC | -1.82% (2025) | 3.54% (2024) |
| P/E | -154.0 (2025) | 19.0 (2024) |
| P/B | 4.04 (2025) | 0.57 (2024) |
| Current Ratio | 1.38 (2025) | 1.33 (2024) |
| Quick Ratio | 1.20 (2025) | 0.88 (2024) |
| D/E | 1.23 (2025) | 0.31 (2024) |
| Debt-to-Assets | 44.8% (2025) | 19.6% (2024) |
| Interest Coverage | -4.10 (2025) | 5.00 (2024) |
| Asset Turnover | 0.29 (2025) | 0.34 (2024) |
| Fixed Asset Turnover | 0.46 (2025) | 2.15 (2024) |
| Payout ratio | -401.5% (2025) | 90.3% (2024) |
| Dividend yield | 2.61% (2025) | 4.75% (2024) |
| Fiscal Year | 2025 | 2024 |
Efficiency & Valuation Duel: The Vital Signs
Financial ratios act as a company’s DNA, uncovering hidden risks and revealing operational strengths crucial for investment decisions.
Air Products and Chemicals, Inc.
Air Products shows negative returns on equity (-2.63%) and margins, signaling operational challenges. Its P/E ratio is negative but paired with a high P/B of 4.04, indicating an expensive valuation relative to book value. The company offers a 2.61% dividend yield, rewarding shareholders despite weak profitability.
DuPont de Nemours, Inc.
DuPont delivers modest profitability with a 3.01% ROE and 5.68% net margin, reflecting a stable but unspectacular performance. Its P/E at 19.02 is neutral, while a low P/B of 0.57 suggests undervaluation. DuPont supports investors with a 4.75% dividend yield, highlighting a shareholder-friendly cash return policy.
Valuation Discipline vs. Operational Strain
DuPont balances moderate profitability with undervaluation and solid dividends, presenting a steadier risk-reward profile. Conversely, Air Products struggles with negative returns and a stretched valuation, despite paying dividends. Investors seeking value and income may prefer DuPont’s profile over Air Products’ current operational stress.
Which one offers the Superior Shareholder Reward?
I compare Air Products and Chemicals, Inc. (APD) and DuPont de Nemours, Inc. (DD) on dividend yield, payout, and buyback intensity. APD offers a 2.6% yield with a sustainable payout ratio near 41%, but negative free cash flow (-14M per share) signals pressure. DD yields 4.7%, with a high payout ratio above 90% but strong free cash flow coverage (69%), supporting dividends and buybacks. DD’s modest debt and lower price-to-book ratio (0.57) enhance value. APD’s buybacks are less pronounced amid stretched cash flow. I see DD’s model as more sustainable and rewarding for 2026, delivering superior total returns through yield and capital efficiency.
Comparative Score Analysis: The Strategic Profile
The radar chart reveals the fundamental DNA and trade-offs of both firms, highlighting their unique financial strengths and vulnerabilities:
DuPont de Nemours, Inc. (DD) exhibits a strong advantage in discounted cash flow (DCF) with a top score of 5, signaling good future cash flow projections. However, both companies score equally low in return on equity (ROE) and return on assets (ROA), indicating limited profitability efficiency. Air Products and Chemicals, Inc. (APD) struggles with very unfavorable scores across DCF, ROE, ROA, debt-to-equity, and price-to-earnings (P/E), only showing a moderate price-to-book (P/B) score. DD presents a more balanced profile with moderate debt-to-equity and favorable P/B scores, relying heavily on its DCF strength.
Bankruptcy Risk: Solvency Showdown
APD’s Altman Z-Score of 2.49 places it in the grey zone, indicating moderate bankruptcy risk. DD’s much lower score of 0.43 signals distress and a high probability of financial distress:
Financial Health: Quality of Operations
Both firms have average Piotroski F-Scores, with DD slightly ahead at 5 versus APD’s 4. Neither shows peak financial health, but APD’s lower score hints at emerging red flags in operational efficiency or liquidity compared to DD:
How are the two companies positioned?
This section dissects the operational DNA of Air Products and Chemicals and DuPont by comparing their revenue distribution and internal strengths and weaknesses. The goal is to confront their economic moats and reveal which business model holds the most resilient, sustainable competitive advantage today.
Revenue Segmentation: The Strategic Mix
This visual comparison dissects how Air Products and Chemicals, Inc. and DuPont de Nemours, Inc. diversify their income streams and where their primary sector bets lie:
Air Products leans on its two major segments, On-site at $6.18B and Merchant at $5.34B, with Sale of Equipment trailing at $520M. This concentration anchors its industrial gas ecosystem, enhancing infrastructure dominance. In contrast, DuPont balances Electronics and Industrial ($5.93B) against Water and Protection ($5.42B), with Corporate at $1.03B, reflecting a more diversified portfolio that mitigates single-segment risk while pivoting across industrial and protective materials markets.
Strengths and Weaknesses Comparison
This table compares the Strengths and Weaknesses of Air Products and Chemicals, Inc. (APD) and DuPont de Nemours, Inc. (DD):
APD Strengths
- Diversified revenue streams including Merchant, On-site, and Equipment sales
- Global presence with strong Americas, Asia, and Europe segments
- Favorable quick ratio indicates liquidity
- Dividend yield at 2.61% supports shareholder returns
DD Strengths
- Wide product diversification across Electronics, Water Protection, and Corporate segments
- Strong global presence with leading U.S. & Canada and Asia Pacific sales
- Favorable debt-to-equity and debt-to-assets ratios indicate financial stability
- Higher dividend yield of 4.75% enhances income appeal
APD Weaknesses
- Negative net margin, ROE, and ROIC reflect profitability challenges
- Unfavorable interest coverage and asset turnover ratios suggest inefficiencies
- High debt-to-equity ratio signals leverage concerns
- Elevated price-to-book ratio may indicate overvaluation
DD Weaknesses
- ROE and ROIC remain below ideal despite positive net margin
- Neutral quick ratio points to moderate liquidity risk
- Asset turnover is unfavorable, suggesting asset utilization issues
- Price-to-earnings ratio is neutral, limiting valuation clarity
Both companies show solid global diversification but face profitability and asset efficiency headwinds. APD struggles more with negative returns and leverage, while DD maintains better financial stability but needs to improve profitability and asset use. These factors are critical for shaping their strategic focus going forward.
The Moat Duel: Analyzing Competitive Defensibility
A structural moat is the only thing protecting long-term profits from relentless competition and market disruption. Let’s dissect the competitive moats of two specialty chemical giants:
Air Products and Chemicals, Inc. (APD): Capital-Intensive Infrastructure Moat
APD’s moat stems from its specialized gas production facilities and proprietary equipment, creating high switching costs. Despite a historically solid gross margin near 31%, declining ROIC and negative EBIT margin signal weakening profitability in 2026. Expansion into hydrogen compression with Baker Hughes could deepen its moat but execution risks remain.
DuPont de Nemours, Inc. (DD): Innovation-Driven Intellectual Property Moat
DD relies on technology-based materials and R&D-driven patents, differentiating it from APD’s asset-heavy moat. DD exhibits stable gross and EBIT margins over 12%, with improving ROIC and net margin growth, underscoring a strengthening competitive position. Its diverse segments targeting semiconductors and mobility materials offer multiple growth avenues in 2026.
Capital Intensity vs. Innovation Edge: Moat Strength Comparison
While both firms technically shed value (ROIC below WACC), DD’s growing profitability and innovation pipeline give it a deeper, more durable moat. APD’s infrastructure moat is challenged by declining returns. DD stands better equipped to defend and expand market share in the evolving specialty chemicals landscape.
Which stock offers better returns?
Over the past 12 months, both stocks show strong upward momentum, with DuPont de Nemours gaining significantly more than Air Products and Chemicals. Recent trading reveals a moderation of this bullish trend in both cases.
Trend Comparison
Air Products and Chemicals, Inc. (APD) experienced a 12.79% price increase over the past year, indicating a bullish trend with accelerating gains. The stock fluctuated between 231.53 and 335.26, showing notable volatility with a 25.54 standard deviation.
DuPont de Nemours, Inc. (DD) posted a 47.04% price rise over 12 months, also bullish with acceleration. It traded between 24.64 and 44.14, but with lower volatility, reflected by a 3.96 standard deviation.
Comparing trends, DD delivered the highest market performance with a 47.04% gain, substantially outperforming APD’s 12.79% increase over the same period.
Target Prices
Analysts present a mixed but clear target consensus for Air Products and Chemicals, Inc. and DuPont de Nemours, Inc.
| Company | Target Low | Target High | Consensus |
|---|---|---|---|
| Air Products and Chemicals, Inc. | 250 | 335 | 280 |
| DuPont de Nemours, Inc. | 44 | 107 | 55.5 |
Air Products trades near its consensus target, suggesting moderate upside potential. DuPont’s consensus sits above its current price, indicating cautious optimism among analysts.
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How do institutions grade them?
Here is a summary of recent institutional grades for Air Products and Chemicals, Inc. and DuPont de Nemours, Inc.:
Air Products and Chemicals, Inc. Grades
The table below shows recent grades assigned by reputable institutions for Air Products and Chemicals, Inc.:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Citigroup | Maintain | Neutral | 2026-01-21 |
| B of A Securities | Upgrade | Neutral | 2026-01-08 |
| Wells Fargo | Downgrade | Equal Weight | 2025-12-19 |
| Mizuho | Maintain | Outperform | 2025-12-18 |
| Citigroup | Downgrade | Neutral | 2025-12-15 |
| UBS | Downgrade | Neutral | 2025-12-12 |
| Argus Research | Maintain | Buy | 2025-12-11 |
| Evercore ISI Group | Maintain | Outperform | 2025-11-11 |
| JP Morgan | Maintain | Neutral | 2025-11-07 |
| Wells Fargo | Maintain | Overweight | 2025-11-07 |
DuPont de Nemours, Inc. Grades
Below is a table summarizing recent grades for DuPont de Nemours, Inc. from leading grading firms:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Citigroup | Maintain | Buy | 2026-01-21 |
| JP Morgan | Maintain | Overweight | 2026-01-16 |
| Keybanc | Maintain | Overweight | 2026-01-09 |
| UBS | Maintain | Buy | 2026-01-07 |
| Mizuho | Maintain | Outperform | 2025-12-18 |
| RBC Capital | Maintain | Outperform | 2025-11-18 |
| Wells Fargo | Maintain | Overweight | 2025-11-07 |
| Keybanc | Maintain | Overweight | 2025-11-07 |
| UBS | Maintain | Buy | 2025-11-07 |
| Keybanc | Maintain | Overweight | 2025-11-05 |
Which company has the best grades?
DuPont de Nemours consistently receives higher grades such as Buy and Overweight from multiple firms. Air Products shows more Neutral and Equal Weight ratings, indicating relatively weaker institutional sentiment. This contrast may influence investor confidence and portfolio positioning.
Risks specific to each company
The following categories identify the critical pressure points and systemic threats facing both firms in the 2026 market environment:
1. Market & Competition
Air Products and Chemicals, Inc.
- Faces pressure from specialty gases competitors and must innovate in hydrogen technology.
DuPont de Nemours, Inc.
- Competes in diversified specialty chemicals with pressure in semiconductors and materials innovation.
2. Capital Structure & Debt
Air Products and Chemicals, Inc.
- High debt-to-equity ratio (1.23) and negative interest coverage signal financial strain.
DuPont de Nemours, Inc.
- Lower debt-to-equity (0.31) and manageable interest coverage indicate stronger balance sheet.
3. Stock Volatility
Air Products and Chemicals, Inc.
- Beta below 1 (0.88) suggests lower volatility than market average.
DuPont de Nemours, Inc.
- Beta above 1 (1.11) indicates higher stock price volatility relative to market.
4. Regulatory & Legal
Air Products and Chemicals, Inc.
- Exposed to regulations on industrial gases and hydrogen safety standards.
DuPont de Nemours, Inc.
- Faces complex regulatory environment across multiple chemical segments, including environmental compliance.
5. Supply Chain & Operations
Air Products and Chemicals, Inc.
- Relies on specialized equipment manufacturing and global industrial gas supply chains.
DuPont de Nemours, Inc.
- Operates complex multi-segment supply chains vulnerable to raw material and logistics disruptions.
6. ESG & Climate Transition
Air Products and Chemicals, Inc.
- Strategic hydrogen collaborations show ESG commitment but transition risks remain high.
DuPont de Nemours, Inc.
- Faces pressure to improve sustainability in water, protection, and materials segments.
7. Geopolitical Exposure
Air Products and Chemicals, Inc.
- Global operations expose it to trade tensions impacting industrial gases and energy markets.
DuPont de Nemours, Inc.
- Broad international footprint increases vulnerability to geopolitical risks in emerging markets.
Which company shows a better risk-adjusted profile?
DuPont de Nemours faces lower financial leverage risks and more favorable valuation metrics. Air Products struggles with high debt and weak profitability, intensifying its financial risk. DuPont’s diversified segments and stronger balance sheet offer a comparatively better risk-adjusted profile. However, DuPont’s Altman Z-score signals distress, warranting caution. The critical risk for Air Products is its negative interest coverage, impairing debt servicing ability. For DuPont, the most pressing risk is its distress-zone Altman Z-score, indicating bankruptcy risk despite lower leverage. Recent data shows Air Products’ negative net margin and DuPont’s poor debt coverage, underscoring financial vulnerabilities for both.
Final Verdict: Which stock to choose?
Air Products and Chemicals, Inc. (APD) excels as a cash-generating powerhouse with a resilient bullish price trend. Its key strength lies in operational efficiency and a solid dividend yield. However, its declining profitability and value destruction remain points of vigilance. APD suits portfolios targeting aggressive growth with a tolerance for cyclical swings.
DuPont de Nemours, Inc. (DD) benefits from a strategic moat rooted in steady innovation and recurring revenue streams. Its balance sheet reflects prudent leverage and better financial stability compared to APD. DD fits well in GARP portfolios seeking a blend of growth potential and reasonable valuation with lower volatility.
If you prioritize high operational efficiency and income generation under cyclical risks, APD is the compelling choice due to its strong cash flow and dividend. However, if you seek a steadier growth trajectory with improving profitability and safer financial footing, DD offers better stability and a more attractive risk-reward profile. Both choices require careful monitoring of profitability trends and capital returns.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of Air Products and Chemicals, Inc. and DuPont de Nemours, Inc. to enhance your investment decisions:
