Alcoa (AA) vs Albemarle Corporation (ALB)

Alcoa and Albemarle Corporation are both in the Basic Materials sector (Aluminum and Specialty Chemicals). Alcoa and Albemarle Corporation are of similar size ($11.6B and $10.7B). Alcoa trades at the lower P/E: 8.5× against 199×. Albemarle Corporation grew revenue faster over the last twelve months: 18.3% against 6.46%. Alcoa has the higher net margin (9.39% vs 0.97%) and the higher return on invested capital (3.72% vs 1.46%). Both pay a dividend; Albemarle Corporation yields more (1.70% vs 0.96%). Across the 22 metrics below, Alcoa leads on 11 and Albemarle Corporation on 11.

Valuation

Metric AA ALB
P/E 8.48 198.92
P/S 0.80 1.91
P/B 1.49 1.36
Price to free cash flow 30.24 8.33
EV/EBITDA 9.15 10.71
EV/Sales 0.87 1.95
Earnings yield 11.79% 0.50%
Free cash flow yield 3.31% 12.00%

Profitability

Metric AA ALB
Gross margin 18.79% 23.81%
Operating margin 3.61% 4.27%
Net margin 9.39% 0.97%
Free cash flow margin 2.66% 22.87%
Return on equity 18.77% 0.69%
Return on assets 8.02% 0.35%
Return on invested capital 3.72% 1.46%

Growth

Metric AA ALB
Revenue growth (TTM) 6.46% 18.32%
EPS growth (last fiscal year) 1,600.00% 48.57%
Revenue growth, 5-year CAGR 6.68% 10.45%
Net income growth, 5-year CAGR 0.00% 0.00%

Health

Metric AA ALB
Debt to equity 0.30 0.18
Current ratio 1.54 2.09
Net debt to EBITDA 0.90 3.33

Dividend

Metric AA ALB
Dividend yield 0.96% 1.70%
Payout ratio 0.08 6.02

Size

Metric AA ALB
Market cap 10.67b 11.59b

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