Albemarle Corporation (ALB) vs PPG Industries, Inc. (PPG)

Albemarle Corporation and PPG Industries, Inc. are both Specialty Chemicals companies. PPG Industries, Inc. is the larger, with a market value of $23.6B against $12.9B — 1.8× the size. PPG Industries, Inc. trades at the lower P/E: 15.3× against 229×. Albemarle Corporation grew revenue faster over the last twelve months: 18.3% against 4.99%. PPG Industries, Inc. has the higher net margin (9.57% vs 0.97%) and the higher return on invested capital (9.87% vs 1.46%). Both pay a dividend; PPG Industries, Inc. yields more (1.92% vs 1.41%). Across the 23 metrics below, PPG Industries, Inc. leads on 14 and Albemarle Corporation on 9.

Valuation

Metric ALB PPG Specialty Chemicals median
P/E 228.60 15.32 24.83
P/S 2.19 1.46 1.46
P/B 1.56 2.79 1.76
Price to free cash flow 9.58 17.04 19.84
EV/EBITDA 12.27 10.72 13.18
EV/Sales 2.23 1.78 1.84
Earnings yield 0.44% 6.53% 2.11%
Free cash flow yield 10.44% 5.87% 2.29%

Profitability

Metric ALB PPG Specialty Chemicals median
Gross margin 23.81% 40.90% 29.23%
Operating margin 4.27% 13.35% 3.63%
Net margin 0.97% 9.57% 2.89%
Free cash flow margin 22.87% 8.57% 3.78%
Return on equity 0.69% 19.25% 3.62%
Return on assets 0.35% 7.04% 0.35%
Return on invested capital 1.46% 9.87% 2.75%

Growth

Metric ALB PPG Specialty Chemicals median
Revenue growth (TTM) 18.32% 4.99% 4.51%
EPS growth (last fiscal year) 48.57% 46.11% —
Revenue growth, 5-year CAGR 10.45% 2.79% 6.30%
Net income growth, 5-year CAGR 0.00% 8.28% 0.00%

Health

Metric ALB PPG Specialty Chemicals median
Debt to equity 0.18 0.80 0.54
Current ratio 2.09 1.58 1.94
Net debt to EBITDA 3.33 1.89 2.03

Dividend

Metric ALB PPG Specialty Chemicals median
Dividend yield 1.41% 1.92% 1.69%
Payout ratio 0.05 0.45 0.25

Size

Metric ALB PPG Specialty Chemicals median
Market cap 12.90b 23.63b 2.43b

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