Albemarle Corporation (ALB) vs Element Solutions Inc. (ESI)

Albemarle Corporation and Element Solutions Inc. are both Specialty Chemicals companies. Albemarle Corporation is the larger, with a market value of $12.9B against $8.4B — 1.5× the size. Element Solutions Inc. trades at the lower P/E: 48.3× against 229×. Element Solutions Inc. grew revenue faster over the last twelve months: 26.6% against 18.3%. Element Solutions Inc. has the higher net margin (5.67% vs 0.97%) and the higher return on invested capital (5.20% vs 1.46%). Both pay a dividend; Albemarle Corporation yields more (1.41% vs 1.15%). Across the 23 metrics below, Element Solutions Inc. leads on 12 and Albemarle Corporation on 11.

Valuation

Metric ALB ESI Specialty Chemicals median
P/E 228.60 48.26 24.83
P/S 2.19 2.76 1.46
P/B 1.56 3.08 1.76
Price to free cash flow 9.58 62.81 19.84
EV/EBITDA 12.27 19.03 13.18
EV/Sales 2.23 3.37 1.84
Earnings yield 0.44% 2.07% 2.11%
Free cash flow yield 10.44% 1.59% 2.29%

Profitability

Metric ALB ESI Specialty Chemicals median
Gross margin 23.81% 38.42% 29.23%
Operating margin 4.27% 12.56% 3.63%
Net margin 0.97% 5.67% 2.89%
Free cash flow margin 22.87% 4.40% 3.78%
Return on equity 0.69% 6.53% 3.62%
Return on assets 0.35% 3.31% 0.35%
Return on invested capital 1.46% 5.20% 2.75%

Growth

Metric ALB ESI Specialty Chemicals median
Revenue growth (TTM) 18.32% 26.61% 4.51%
EPS growth (last fiscal year) 48.57% (21.78%) —
Revenue growth, 5-year CAGR 10.45% 6.60% 6.30%
Net income growth, 5-year CAGR 0.00% 20.31% 0.00%

Health

Metric ALB ESI Specialty Chemicals median
Debt to equity 0.18 0.75 0.54
Current ratio 2.09 2.91 1.94
Net debt to EBITDA 3.33 2.03 2.03

Dividend

Metric ALB ESI Specialty Chemicals median
Dividend yield 1.41% 1.15% 1.69%
Payout ratio 0.05 1.52 0.25

Size

Metric ALB ESI Specialty Chemicals median
Market cap 12.90b 8.41b 2.43b

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