One of the sectors that is often overlooked by investors is the industrial gases sector. Industrial gases are a group of gases that are used in many industries such as metal, polymer, food, medical, oil refining industries. Like utilities and consumer staples, this sector can be considered as a stable and relatively safe industry to invest in during all market conditions.
Some of the industrial gases are Acetylene, Hydrogen, Oxygen, Nitrogen, Carbon dioxide and Argon. These gases can be transported in either compressed, liquid, or solid forms. Acetylene is used for cutting steel and for welding. Hydrogen is used in the edible fat and oil industries where it is used to hydrogenate vegetable oils to make margarine. Carbon dioxide is used to carbonate soft drinks, beers, etc. It is also used to remove caffeine from coffee beans to make decaffeinated coffee. Nitrogen is used for cooling many mechanical equipments that needs to be extremely cold in the food industry.In addition to the medical industry, Oxygen is used in the steel industry to remove impurities in the steel. Since Argon is highly unreactive it is used to protect very hot metal such as molten metal.
A comparison of the four major players in the industrial gases industry is shown below:
| S.No. | Company | Ticker | Country | 2009 Revenues | Current Dividend Yield |
|---|---|---|---|---|---|
| 1 | Airgas | ARG | USA | $4.0 B | 1.61% |
| 2 | Air Products and Chemicals | APD | USA | $9.0 B | 2.26% |
| 3 | Praxair | PX | USA | $9.0 B | 1.94% |
| 4 | Air Liquide | AIQUY.PK | France | EUR 12.0 B | 2.12% |
1. Radnor, PA-based Airgas (ARG) is the largest distributor of industrial, medical, and specialty gases and hardgoods, such as welding equipment and supplies in the U.S. It is also one of the largest U.S. distributors of safety products, the largest U.S. producer of nitrous oxide and dry ice and a leading distributor of process chemicals, refrigerants and
