Reviewing ICL Group (NYSE:ICL) & Akzo Nobel (OTCMKTS:AKZOY)

ICL Group (NYSE:ICL) and Akzo Nobel (OTCMKTS:AKZOY) are both materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, valuation, risk, institutional ownership, profitability and dividends.

Earnings and Valuation

This table compares ICL Group and Akzo Nobel”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ICL Group	$7.15 billion	0.86	$226.00 million	$0.24	19.85
Akzo Nobel	$11.49 billion	1.02	$718.44 million	$1.43	15.97

Akzo Nobel has higher revenue and earnings than ICL Group. Akzo Nobel is trading at a lower price-to-earnings ratio than ICL Group, indicating that it is currently the more affordable of the two stocks.

Dividends

ICL Group pays an annual dividend of $0.17 per share and has a dividend yield of 3.6%. Akzo Nobel pays an annual dividend of $0.99 per share and has a dividend yield of 4.3%. ICL Group pays out 70.8% of its earnings in the form of a dividend. Akzo Nobel pays out 69.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Akzo Nobel is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares ICL Group and Akzo Nobel’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ICL Group	3.95%	8.40%	4.19%
Akzo Nobel	6.49%	12.77%	4.09%

Analyst Recommendations

This is a breakdown of recent recommendations for ICL Group and Akzo Nobel, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ICL Group	0	2	0	0	2.00
Akzo Nobel	0	6	2	1	2.44

ICL Group currently has a consensus price target of $6.00, suggesting a potential upside of 25.92%. Given ICL Group’s higher possible upside, equities analysts plainly believe ICL Group is more favorable than Akzo Nobel.

Insider & Institutional Ownership

13.4% of ICL Group shares are held by institutional investors. Comparatively, 0.4% of Akzo Nobel shares are held by institutional investors. 0.3% of ICL Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

ICL Group has a beta of 1.03, suggesting that its stock price is 3% more volatile than the S&P 500. Comparatively, Akzo Nobel has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500.

Summary

Akzo Nobel beats ICL Group on 13 of the 17 factors compared between the two stocks.

About ICL Group

ICL Group Ltd, together with its subsidiaries, operates as a specialty minerals and chemicals company worldwide. It operates in four segments: Industrial Products, Potash, Phosphate Solutions, and Growing Solutions. The Industrial Products segment produces bromine out of a solution that is a by-product of the potash production process, as well as bromine-based compounds; produces various grades of potash, salt, magnesium chloride, and magnesia products; and produces and markets phosphorous-based flame retardants and other phosphorus-based products. The Potash segment extracts potash from the Dead Sea; mines and produces potash and salt; produces polysulphate; produces, markets, and sells magnesium and magnesium alloys, as well as related by-products, including chlorine and sylvinite; and sells salt. The Phosphate Solutions segment uses phosphate commodity products to produce specialty products; produces and markets phosphate-based fertilizers, as well as sulphuric acid, green phosphoric acid, and phosphate fertilizers; and manufactures thermal phosphoric acid for various industrial end markets, such as oral care, cleaning products, paints and coatings, water treatment, asphalt modification, construction, and metal treatment. It also develops and produces functional food ingredients and phosphate additives for use in the processed meat, poultry, seafood, dairy, beverage, and baked goods markets; and produces milk and whey proteins for the food ingredients industry. The Growing Solutions segment develops, manufactures, markets, and sells fertilizers based primarily on nitrogen, potash, and phosphate, including water soluble specialty, liquid, soluble, and controlled-release fertilizers. It sells its products through marketing companies, agents, and distributors. The company was formerly known as Israel Chemicals Ltd. and changed its name to ICL Group Ltd in May 2020. The company was founded in 1968 and is headquartered in Tel Aviv, Israel.

About Akzo Nobel

Akzo Nobel N.V. engages in the production and sale of paints and coatings worldwide. The company operates through two segments: Decorative Paints and Performance Coatings. It offers decorative paints, including paints, lacquers, and varnishes; and a range of mixing machines and color concepts for the building and renovation industry, as well as specialty coatings. The company also provides performance coatings that protect and enhance ships, cars, aircraft, yachts, architectural components, consumer goods, and oil and gas facilities. It offers its products under AkzoNobel, Alabastine, Alba, Andercol, Apla, Armstead Trade, Astral, Astral Batiment, AwlGrip, Brikol, Dulux, Bruguer, Cetabever, Cetol, Chemcraft, Colourland Paints, CONSOLAN, Coral, Cromadex, Cuprinol, Dynacoat, Flexa, Glitsa, Grip-Gard, Herbol, Hammerite, International, Interlux, Innenweis, Interpon, Inca, Luxol, Levis, Lesonal, Molto, Modern Classikk, Maxilite, Mauvilac, Mason CT, Marshall, Mactra, Nordsjo, Oxirite, Protecto, Procolor, Polyfilla, Polycell, Pinotex, Pintuco, Resicoat, Relest, Sparlack, Sadolin, Sikkens, Sea Hawk, Savana, Salcomix, Trimetal, Titanlux, Taubmans, U-tech, Vpowdertech, Vivechrom, Xylazel, Xyladecor, Wanda, and Zweihorn brands. The company serves to energy, packaging, infrastructure, and shipbuilding and maintenance industries, as well as general industries, such as agricultural and construction equipment, construction-related steel, metal fabrication, pipes, appliances, and transportation. The company was formerly known as Akzo NV and changed its name to Akzo Nobel N.V. in 1994. Akzo Nobel N.V. was founded in 1646 and is headquartered in Amsterdam, the Netherlands.