Albemarle Corporation (NYSE: ALB) and Ingevity Corp (NASDAQ:NGVT) are both mid-cap basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, profitability, risk and earnings.
Valuation & Earnings
This table compares Albemarle Corporation and Ingevity Corp’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Albemarle Corporation||$2.81 billion||5.42||$744.58 million||$7.80||17.66|
|Ingevity Corp||$942.10 million||3.02||$216.90 million||N/A||N/A|
Albemarle Corporation has higher revenue and earnings than Ingevity Corp.
Albemarle Corporation pays an annual dividend of $1.28 per share and has a dividend yield of 0.9%. Ingevity Corp does not pay a dividend. Albemarle Corporation pays out 16.4% of its earnings in the form of a dividend. Albemarle Corporation has raised its dividend for 13 consecutive years.
Insider and Institutional Ownership
83.8% of Albemarle Corporation shares are owned by institutional investors. 0.7% of Albemarle Corporation shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
This is a summary of current recommendations for Albemarle Corporation and Ingevity Corp, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Albemarle Corporation presently has a consensus price target of $118.53, indicating a potential downside of 13.97%. Ingevity Corp has a consensus price target of $69.20, indicating a potential upside of 2.62%. Given Ingevity Corp’s stronger consensus rating and higher possible upside, analysts clearly believe Ingevity Corp is more favorable than Albemarle Corporation.
This table compares Albemarle Corporation and Ingevity Corp’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Albemarle Corporation beats Ingevity Corp on 9 of the 15 factors compared between the two stocks.
Albemarle Corporation Company Profile
Albemarle Corporation is a global developer, manufacturer and marketer of highly-engineered specialty chemicals. The Company operates through three segments: Lithium and Advanced Materials, Bromine Specialties and Refining Solutions. Lithium and Advanced Materials segment consist of two product categories: Lithium and Performance Catalyst Solutions. The bromine and bromine-based business includes products used in fire safety solutions and other specialty chemicals applications. The Company serves various end markets, including petroleum refining, consumer electronics, energy storage, construction, automotive, lubricants, pharmaceuticals, crop protection, food safety and custom chemistry services. As of December 31, 2016, the Company and its joint ventures operated 31 production and research and development (R&D) facilities, as well as a number of administrative and sales offices, around the world.
Ingevity Corp Company Profile
Ingevity Corporation is a manufacturer of specialty chemicals and high performance carbon materials. The Company is also a manufacturer of activated carbon used in gasoline vapor emission control systems in cars, trucks, motorcycles and boats. The Company operates through two segments: Performance Materials and Performance Chemicals. The Performance Materials segment primarily produces automotive carbon products used in gasoline vapor emission control systems in cars, trucks, motorcycles and boats. The Performance Chemicals segment develops, manufactures and sells a range of specialty chemicals primarily derived from co-products of the Kraft pulping process. Its products are used in a range of applications, including asphalt paving, oil exploration and production, agrochemicals, adhesives, lubricants, publication inks and automotive components that reduce gasoline vapor emissions.
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