Alcoa (AA) vs Albemarle Corporation (ALB)

Alcoa and Albemarle Corporation are both in the Basic Materials sector (Aluminum and Specialty Chemicals). Albemarle Corporation is the larger, with a market value of $11.6B against $10.1B — 1.1× the size. Alcoa trades at the lower P/E: 6.6× against 22.6×. Albemarle Corporation grew revenue faster over the last twelve months: 24.4% against 11.2%. Alcoa has the higher net margin (10.7% vs 8.37%) and the higher return on invested capital (13.8% vs 3.55%). Both pay a dividend; Albemarle Corporation yields more (1.65% vs 1.04%). Across the 22 metrics below, Alcoa leads on 14 and Albemarle Corporation on 8.

Valuation

Metric AA ALB
P/E 6.61 22.58
P/S 0.71 1.89
P/B 1.24 1.35
Price to free cash flow 11.32 8.60
EV/EBITDA 3.89 9.23
EV/Sales 0.74 1.89
Earnings yield 15.13% 4.43%
Free cash flow yield 8.83% 11.63%

Profitability

Metric AA ALB
Gross margin 21.93% 25.84%
Operating margin 13.33% 10.03%
Net margin 10.68% 8.37%
Free cash flow margin 6.29% 0.00%
Return on equity 20.82% 6.20%
Return on assets 8.41% 3.10%
Return on invested capital 13.77% 3.55%

Growth

Metric AA ALB
Revenue growth (TTM) 11.22% 24.40%
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 0.58 0.17
Current ratio 2.31 2.34
Net debt to EBITDA 0.90 3.33

Dividend

Metric AA ALB
Dividend yield 1.04% 1.65%
Payout ratio 0.07 0.39

Size

Metric AA ALB
Market cap 10.14b 11.61b

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack