Albemarle Corporation (ALB) vs RPM International Inc. (RPM)

Albemarle Corporation and RPM International Inc. are both Specialty Chemicals companies. Albemarle Corporation and RPM International Inc. are of similar size ($12.9B and $12.6B). RPM International Inc. trades at the lower P/E: 19.4× against 229×. Albemarle Corporation grew revenue faster over the last twelve months: 18.3% against 6.66%. RPM International Inc. has the higher net margin (8.38% vs 0.97%) and the higher return on invested capital (10.9% vs 1.46%). Both pay a dividend; RPM International Inc. yields more (1.47% vs 1.41%). Across the 23 metrics below, RPM International Inc. leads on 13 and Albemarle Corporation on 10.

Valuation

Metric ALB RPM Specialty Chemicals median
P/E 228.60 19.39 24.83
P/S 2.19 1.62 1.46
P/B 1.56 3.85 1.76
Price to free cash flow 9.58 18.27 19.84
EV/EBITDA 12.27 12.59 13.18
EV/Sales 2.23 1.90 1.84
Earnings yield 0.44% 5.16% 2.11%
Free cash flow yield 10.44% 5.47% 2.29%

Profitability

Metric ALB RPM Specialty Chemicals median
Gross margin 23.81% 41.44% 29.23%
Operating margin 4.27% 12.29% 3.63%
Net margin 0.97% 8.38% 2.89%
Free cash flow margin 22.87% 8.88% 3.78%
Return on equity 0.69% 21.25% 3.62%
Return on assets 0.35% 8.17% 0.35%
Return on invested capital 1.46% 10.92% 2.75%

Growth

Metric ALB RPM Specialty Chemicals median
Revenue growth (TTM) 18.32% 6.66% 4.51%
EPS growth (last fiscal year) 48.57% (3.36%) —
Revenue growth, 5-year CAGR 10.45% 5.19% 6.30%
Net income growth, 5-year CAGR 0.00% 5.73% 0.00%

Health

Metric ALB RPM Specialty Chemicals median
Debt to equity 0.18 0.76 0.54
Current ratio 2.09 1.68 1.94
Net debt to EBITDA 3.33 1.87 2.03

Dividend

Metric ALB RPM Specialty Chemicals median
Dividend yield 1.41% 1.47% 1.69%
Payout ratio 0.05 0.42 0.25

Size

Metric ALB RPM Specialty Chemicals median
Market cap 12.90b 12.59b 2.43b

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