APD (Air Products and Chemicals Inc) vs S&P 500 Comparison

APD

S&P 500

Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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APD

S&P 500

Difference

1Y 3Y 5Y 10Y 15Y 20Y

APD

S&P 500

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Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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S&P 500

APD

LIN

4091

LINDEINDIA

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1Y 3Y 5Y 10Y 15Y 20Y

Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

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Air Products and Chemicals Inc
Glance View

Economic Moat

None

Market Cap

63.4B USD

Industry

Chemicals

Air Products and Chemicals Inc., founded in 1940 by Leonard P. Pool, ventured into the industrial gases landscape with a refreshing business model focused on leasing its gas-producing equipment plants to customers, setting a new standard in the industry. The company's core business is centered around providing atmospheric gases such as oxygen, nitrogen, and argon, as well as process and specialty gases, including hydrogen and helium, to a myriad of industries. By leveraging long-term contracts, it ensures consistent revenue streams and operational stability, catering to sectors ranging from healthcare to energy production. This approach not only fortified its financial foundation but also allowed it to expand globally, building production facilities that address local needs while optimizing its logistic networks to maintain competitive delivery times and costs. As the business environment evolved, Air Products progressively broadened its horizons, delving into innovative areas like hydrogen infrastructure development for cleaner energy solutions. This strategic pivot capitalizes on the growing environmental consciousness worldwide, aligning the company with emergent sustainability trends. Through technological advancements, Air Products delivers high-efficiency solutions, enhancing productivity for clients across petrochemicals, refining, and manufacturing industries. The company’s revenue generation is deeply intertwined with its capability to integrate gas application expertise into the operational matrices of its partners, ensuring value addition beyond mere supply. By continually adapting and innovating, Air Products solidifies its position as not merely a supplier, but a pivotal partner driving industrial advancement and environmentally conscious growth.

View APD Analysis

APD Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

UK	L	Linde PLC XETRA:LIN	Add
FR		L'Air Liquide Societe Anonyme pour l'Etude et l'Exploitation des Procedes Georges Claude SA PAR:AI	Add
JP		Nippon Sanso Holdings Corp TSE:4091	Add
IN		Linde India Ltd NSE:LINDEINDIA	Add
IT		SOL SpA MIL:SOL	Add
JP		Air Water Inc TSE:4088	Add
CN		Hangzhou Oxygen Plant Group Co Ltd SZSE:002430	Add
CN	P	Peric Special Gases Co Ltd SSE:688146	Add
CN	S	Sichuan Qiaoyuan Gas Co Ltd SZSE:301286	Add
CN	S	Suzhou Jinhong Gas Co Ltd SSE:688106	Add

UK	L	Linde PLC XETRA:LIN	Select
FR		L'Air Liquide Societe Anonyme pour l'Etude et l'Exploitation des Procedes Georges Claude SA PAR:AI	Select
JP		Nippon Sanso Holdings Corp TSE:4091	Select
IN		Linde India Ltd NSE:LINDEINDIA	Select
IT		SOL SpA MIL:SOL	Select
JP		Air Water Inc TSE:4088	Select
CN		Hangzhou Oxygen Plant Group Co Ltd SZSE:002430	Select
CN	P	Peric Special Gases Co Ltd SSE:688146	Select
CN	S	Sichuan Qiaoyuan Gas Co Ltd SZSE:301286	Select
CN	S	Suzhou Jinhong Gas Co Ltd SSE:688106	Select

UK	L	Linde PLC XETRA:LIN	Add
FR		L'Air Liquide Societe Anonyme pour l'Etude et l'Exploitation des Procedes Georges Claude SA PAR:AI	Add
JP		Nippon Sanso Holdings Corp TSE:4091	Add
IN		Linde India Ltd NSE:LINDEINDIA	Add
IT		SOL SpA MIL:SOL	Add
JP		Air Water Inc TSE:4088	Add
CN		Hangzhou Oxygen Plant Group Co Ltd SZSE:002430	Add
CN	P	Peric Special Gases Co Ltd SSE:688146	Add
CN	S	Sichuan Qiaoyuan Gas Co Ltd SZSE:301286	Add
CN	S	Suzhou Jinhong Gas Co Ltd SSE:688106	Add

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APD

vs

S&P 500

Stocks Performance
APD vs S&P 500

Performance Gap
APD vs S&P 500

Performance By Year
APD vs S&P 500

Competitors Performance
Air Products and Chemicals Inc vs Peers

Air Products and Chemicals Inc
Glance View

Company

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APD vs S&P 500

Stocks Performance APD vs S&P 500

Performance Gap APD vs S&P 500

Performance By Year APD vs S&P 500

Competitors Performance Air Products and Chemicals Inc vs Peers

Air Products and Chemicals Inc Glance View

Company

Help

Tools

Stocks

APD

vs

S&P 500

Stocks Performance
APD vs S&P 500

Performance Gap
APD vs S&P 500

Performance By Year
APD vs S&P 500

Competitors Performance
Air Products and Chemicals Inc vs Peers

Air Products and Chemicals Inc
Glance View