Head to Head Analysis: Akzo Nobel (OTCMKTS:AKZOY) vs. Albemarle (NYSE:ALB)

Albemarle (NYSE:ALB) and Akzo Nobel (OTCMKTS:AKZOY) are both basic materials companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.

Earnings and Valuation

This table compares Albemarle and Akzo Nobel”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Albemarle	$5.14 billion	4.09	-$510.63 million	($5.75)	-30.99
Akzo Nobel	$11.49 billion	0.84	$718.44 million	$1.41	13.34

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

Dividends

Albemarle pays an annual dividend of $1.62 per share and has a dividend yield of 0.9%. Akzo Nobel pays an annual dividend of $0.25 per share and has a dividend yield of 1.3%. Albemarle pays out -28.2% of its earnings in the form of a dividend. Akzo Nobel pays out 17.7% 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. Albemarle has increased its dividend for 30 consecutive years.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Albemarle and Akzo Nobel, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Albemarle	2	11	13	2	2.54
Akzo Nobel	1	4	0	1	2.17

Albemarle currently has a consensus price target of $170.24, suggesting a potential downside of 4.47%. Given Albemarle’s stronger consensus rating and higher probable upside, analysts clearly believe Albemarle is more favorable than Akzo Nobel.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Albemarle	-10.74%	0.41%	0.19%
Akzo Nobel	6.49%	13.73%	4.39%

Insider and Institutional Ownership

92.9% of Albemarle shares are owned by institutional investors. Comparatively, 0.4% of Akzo Nobel shares are owned by institutional investors. 0.3% of Albemarle shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Albemarle has a beta of 1.43, meaning that its share price is 43% more volatile than the S&P 500. Comparatively, Akzo Nobel has a beta of 1.12, meaning that its share price is 12% more volatile than the S&P 500.

Summary

Albemarle beats Akzo Nobel on 10 of the 18 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 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.