Albemarle Corporation (ALB) vs. Its Peers Critical Analysis
Albemarle Corporation (NYSE: ALB) is one of 34 public companies in the “Commodity Chemicals” industry, but how does it weigh in compared to its peers? We will compare Albemarle Corporation to related companies based on the strength of its institutional ownership, dividends, profitability, valuation, analyst recommendations, earnings and risk.
Albemarle Corporation pays an annual dividend of $1.28 per share and has a dividend yield of 0.9%. Albemarle Corporation pays out 16.4% of its earnings in the form of a dividend. As a group, “Commodity Chemicals” companies pay a dividend yield of 1.8% and pay out 62.9% of their earnings in the form of a dividend. Albemarle Corporation has raised its dividend for 13 consecutive years.
This is a summary of recent ratings and recommmendations for Albemarle Corporation and its peers, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Albemarle Corporation Competitors||103||768||1147||32||2.54|
Albemarle Corporation presently has a consensus price target of $121.88, indicating a potential downside of 12.57%. As a group, “Commodity Chemicals” companies have a potential upside of 0.41%. Given Albemarle Corporation’s peers higher possible upside, analysts clearly believe Albemarle Corporation has less favorable growth aspects than its peers.
Risk and Volatility
Albemarle Corporation has a beta of 1.66, indicating that its stock price is 66% more volatile than the S&P 500. Comparatively, Albemarle Corporation’s peers have a beta of 1.17, indicating that their average stock price is 17% more volatile than the S&P 500.
Earnings and Valuation
This table compares Albemarle Corporation and its peers top-line revenue, earnings per share and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Albemarle Corporation||$2.81 billion||$744.58 million||17.87|
|Albemarle Corporation Competitors||$4.15 billion||$892.82 million||33.62|
Albemarle Corporation’s peers have higher revenue and earnings than Albemarle Corporation. Albemarle Corporation is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
This table compares Albemarle Corporation and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Albemarle Corporation Competitors||-29.19%||27.54%||5.29%|
Insider and Institutional Ownership
83.7% of Albemarle Corporation shares are owned by institutional investors. Comparatively, 69.0% of shares of all “Commodity Chemicals” companies are owned by institutional investors. 0.7% of Albemarle Corporation shares are owned by insiders. Comparatively, 8.3% of shares of all “Commodity Chemicals” companies are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Albemarle Corporation peers beat Albemarle Corporation on 8 of the 15 factors compared.
About Albemarle Corporation
Albemarle Corporation is a global developer, manufacturer and marketer of highly-engineered specialty chemicals. The Company operates through three segments: Lithium and Advanced Materials, Bromine Specialties and Refining Solutions. Lithium and Advanced Materials segment consist of two product categories: Lithium and Performance Catalyst Solutions. The bromine and bromine-based business includes products used in fire safety solutions and other specialty chemicals applications. The Company serves various end markets, including petroleum refining, consumer electronics, energy storage, construction, automotive, lubricants, pharmaceuticals, crop protection, food safety and custom chemistry services. As of December 31, 2016, the Company and its joint ventures operated 31 production and research and development (R&D) facilities, as well as a number of administrative and sales offices, around the world.
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