UFP Technologies (NASDAQ: UFPT) and Albemarle Corporation (NYSE:ALB) are both industrial products companies, but which is the better stock? We will compare the two companies based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.

Analyst Ratings

This is a breakdown of recent ratings for UFP Technologies and Albemarle Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
UFP Technologies 0 0 0 0 N/A
Albemarle Corporation 0 6 12 0 2.67

Albemarle Corporation has a consensus target price of $124.72, suggesting a potential downside of 10.94%. Given Albemarle Corporation’s higher possible upside, analysts plainly believe Albemarle Corporation is more favorable than UFP Technologies.

Dividends

Albemarle Corporation pays an annual dividend of $1.28 per share and has a dividend yield of 0.9%. UFP Technologies does not pay a dividend. Albemarle Corporation pays out 47.9% of its earnings in the form of a dividend. Albemarle Corporation has increased its dividend for 13 consecutive years.

Profitability

This table compares UFP Technologies and Albemarle Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
UFP Technologies 5.43% 6.90% 6.09%
Albemarle Corporation 31.49% 11.59% 5.42%

Institutional and Insider Ownership

68.3% of UFP Technologies shares are owned by institutional investors. Comparatively, 83.8% of Albemarle Corporation shares are owned by institutional investors. 13.3% of UFP Technologies shares are owned by insiders. Comparatively, 0.7% of Albemarle Corporation shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk and Volatility

UFP Technologies has a beta of 0.18, indicating that its stock price is 82% less volatile than the S&P 500. Comparatively, Albemarle Corporation has a beta of 1.72, indicating that its stock price is 72% more volatile than the S&P 500.

Valuation & Earnings

This table compares UFP Technologies and Albemarle Corporation’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
UFP Technologies $146.13 million 1.35 $7.97 million $1.09 24.82
Albemarle Corporation $2.68 billion 5.78 $643.67 million $2.67 52.45

Albemarle Corporation has higher revenue and earnings than UFP Technologies. UFP Technologies is trading at a lower price-to-earnings ratio than Albemarle Corporation, indicating that it is currently the more affordable of the two stocks.

Summary

Albemarle Corporation beats UFP Technologies on 13 of the 16 factors compared between the two stocks.

UFP Technologies Company Profile

UFP Technologies, Inc. is a designer and custom converter of foams, plastics, composites and natural fiber materials. The Company is engaged in providing solutions to customers primarily within the medical, automotive, consumer, electronics, industrial, and aerospace and defense markets. It converts these materials using laminating, molding, and fabricating manufacturing technologies. The Company’s raw materials consist of polyethylene and polyurethane foams, sheet plastics, pulp fiber, cross-linked polyethylene and reticulated polyurethane foams, fabric and foam laminates, and natural fiber materials. The Company converts these materials to provide customers various solutions, including automotive interior trim, medical device components, disposable wound care components, military uniform and gear components, athletic padding, air filtration, high-temperature insulation, abrasive nail files and other beauty aids, and cushion packaging for their products.

Albemarle Corporation Company Profile

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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