Albemarle (NYSE:ALB – Get Free Report) and Axalta Coating Systems (NYSE:AXTA – Get Free Report) are both materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, earnings, dividends, profitability, risk, institutional ownership and analyst recommendations.
Institutional and Insider Ownership
92.9% of Albemarle shares are owned by institutional investors. Comparatively, 98.3% of Axalta Coating Systems shares are owned by institutional investors. 0.4% of Albemarle shares are owned by insiders. Comparatively, 0.5% of Axalta Coating Systems shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Albemarle and Axalta Coating Systems”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Albemarle | $5.14 billion | 2.15 | -$510.63 million | $0.27 | 346.40 |
| Axalta Coating Systems | $5.12 billion | 1.43 | $378.00 million | $1.62 | 21.13 |
Axalta Coating Systems has lower revenue, but higher earnings than Albemarle. Axalta Coating Systems is trading at a lower price-to-earnings ratio than Albemarle, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current ratings and price targets for Albemarle and Axalta Coating Systems, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Albemarle | 3 | 7 | 15 | 0 | 2.48 |
| Axalta Coating Systems | 0 | 8 | 4 | 1 | 2.46 |
Albemarle presently has a consensus target price of $179.41, indicating a potential upside of 91.82%. Axalta Coating Systems has a consensus target price of $38.18, indicating a potential upside of 11.57%. Given Albemarle’s stronger consensus rating and higher probable upside, analysts clearly believe Albemarle is more favorable than Axalta Coating Systems.
Risk and Volatility
Albemarle has a beta of 1.36, suggesting that its stock price is 36% more volatile than the S&P 500. Comparatively, Axalta Coating Systems has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500.
Profitability
This table compares Albemarle and Axalta Coating Systems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Albemarle | 3.09% | 10.96% | 5.39% |
| Axalta Coating Systems | 6.78% | 22.35% | 7.12% |
Summary
Axalta Coating Systems beats Albemarle on 8 of the 15 factors compared between the two stocks.
About Albemarle
Albemarle Corporation develops, manufactures, and markets engineered specialty chemicals worldwide. It operates through three segments: Energy Storage, Specialties and Ketjen. The Energy Storage segment offers lithium compounds, including lithium carbonate, lithium hydroxide, and lithium chloride; technical services for the handling and use of reactive lithium products; and lithium-containing by-products recycling services. The Specialties segment provides bromine-based specialty chemicals, including elemental bromine, alkyl and inorganic bromides, brominated powdered activated carbon, and other bromine fine chemicals; lithium specialties, such as butyllithium and lithium aluminum hydride; develops and manufactures cesium products for the chemical and pharmaceutical industries; and zirconium, barium, and titanium products for pyrotechnical applications that include airbag initiators. The Ketjen segment offers clean fuels technologies (CFT), which is composed of hydroprocessing catalysts (HPC) together with isomerization and akylation catalysts; fluidized catalytic cracking (FCC) catalysts and additives; and performance catalyst solutions (PCS), which is composed of organometallics and curatives. The company serves the energy storage, petroleum refining, consumer electronics, construction, automotive, lubricants, pharmaceuticals, and crop protection markets. Albemarle Corporation was founded in 1887 and is headquartered in Charlotte, North Carolina.
About Axalta Coating Systems
Axalta Coating Systems Ltd., through its subsidiaries, manufactures, markets, and distributes high-performance coatings systems in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. The company operates through two segments, Performance Coatings and Mobility Coatings. It also offers water and solvent-borne products and systems to repair damaged vehicles for independent body shops, multi-shop operators, and original equipment manufacturer (OEM) dealership body shops. In addition, the company provides functional and decorative liquid, and powder coatings used in various industrial applications, including building materials, cabinet, wood and luxury vinyl flooring and furniture market under the Voltatex, AquaEC, Durapon, Hydropon, UNRIVALED, Ceranamel, Industrial, Corlar Industrial, Tufcote, Imron Industrial, Alesta, Teodur, Nap-Gard, Abcite, and Plascoat brands for powder coatings. Further, it develops and supplies electrocoat, primer, the basecoat, and clearcoat products for OEMs of light and commercial vehicles; and coatings systems for various commercial applications, including HDT, MDT, bus, and rail under the Imron, Imron Elite, Centari, Rival, Corlar epoxy undercoats, and AquaEC brands. The company offers products under the Audurra, Abcite, Alesta, AquaEC, Centari, Ceranamel, Challenger, Chemophan, ColorNet, Cromax, Cromax Mosaic, Durapon 70, Duxone, Harmonized Coating Technologies, Imron ExcelPro, Lutophen, Nason, Spies Hecker, Standox, Stollaquid, Syntopal, Syrox, Raptor, U-POL, and Vermeera brand names. The company was formerly known as Axalta Coating Systems Bermuda Co., Ltd. and changed its name to Axalta Coating Systems Ltd. in August 2014. Axalta Coating Systems Ltd. was founded in 1866 and is headquartered in Glen Mills, Pennsylvania.
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