Albemarle Corporation (ALB) vs Axalta Coating Systems Ltd. (AXTA)

Albemarle Corporation and Axalta Coating Systems Ltd. are both Specialty Chemicals companies. Albemarle Corporation is the larger, with a market value of $11.6B against $7.8B — 1.5× the size. Albemarle Corporation trades at the lower P/E: 22.6× against 23.3×. Albemarle Corporation grew revenue faster over the last twelve months: 24.4% against 0.14%. Albemarle Corporation has the higher net margin (8.37% vs 6.46%) and the lower return on invested capital (3.55% vs 7.99%). Across the 22 metrics below, Albemarle Corporation leads on 13 and Axalta Coating Systems Ltd. on 9.

Valuation

Metric ALB AXTA Specialty Chemicals median
P/E 22.58 23.28 24.46
P/S 1.89 1.51 1.64
P/B 1.35 2.92 1.88
Price to free cash flow 8.60 15.68 19.15
EV/EBITDA 9.23 10.57 12.87
EV/Sales 1.89 1.96 1.88
Earnings yield 4.43% 4.30% 2.42%
Free cash flow yield 11.63% 6.38% 2.25%

Profitability

Metric ALB AXTA Specialty Chemicals median
Gross margin 25.84% 33.58% 27.84%
Operating margin 10.03% 12.37% 5.64%
Net margin 8.37% 6.46% 4.19%
Free cash flow margin 0.00% 9.61% 3.49%
Return on equity 6.20% 13.38% 2.34%
Return on assets 3.10% 4.31% 0.45%
Return on invested capital 3.55% 7.99% 3.21%

Growth

Metric ALB AXTA Specialty Chemicals median
Revenue growth (TTM) 24.40% 0.14% 6.39%
EPS growth (last fiscal year) 48.57% (2.25%) (9.77%)
Revenue growth, 5-year CAGR 10.45% 6.48% 6.33%
Net income growth, 5-year CAGR 0.00% 25.46% 0.00%

Health

Metric ALB AXTA Specialty Chemicals median
Debt to equity 0.17 1.12 0.59
Current ratio 2.34 1.53 2.28
Net debt to EBITDA 3.33 2.45 2.03

Dividend

Metric ALB AXTA Specialty Chemicals median
Dividend yield 1.65% — 1.80%
Payout ratio 0.39 — 0.40

Size

Metric ALB AXTA Specialty Chemicals median
Market cap 11.61b 7.78b 2.08b

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