Financial Contrast: Chemours (CC) versus Albemarle (ALB)

Chemours (NYSE: CC) and Albemarle (NYSE:ALB) are both basic materials companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, valuation, profitability, earnings, dividends, analyst recommendations and institutional ownership.

Dividends

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Chemours pays an annual dividend of $0.68 per share and has a dividend yield of 1.4%. Albemarle pays an annual dividend of $1.34 per share and has a dividend yield of 1.5%. Chemours pays out 17.8% of its earnings in the form of a dividend. Albemarle pays out 29.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Albemarle has raised its dividend for 14 consecutive years. Albemarle is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Chemours and Albemarle’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Chemours 12.06% 115.54% 10.83%
Albemarle 1.79% 13.27% 6.89%

Valuation and Earnings

This table compares Chemours and Albemarle’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Chemours $6.18 billion 1.44 $746.00 million $3.82 12.74
Albemarle $3.07 billion 3.31 $54.85 million $4.59 20.00

Chemours has higher revenue and earnings than Albemarle. Chemours is trading at a lower price-to-earnings ratio than Albemarle, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

77.8% of Chemours shares are held by institutional investors. Comparatively, 86.4% of Albemarle shares are held by institutional investors. 1.8% of Chemours shares are held by insiders. Comparatively, 0.7% of Albemarle shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk & Volatility

Chemours has a beta of 2.95, indicating that its stock price is 195% more volatile than the S&P 500. Comparatively, Albemarle has a beta of 1.66, indicating that its stock price is 66% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for Chemours and Albemarle, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Chemours 0 2 7 0 2.78
Albemarle 0 5 17 0 2.77

Chemours presently has a consensus target price of $58.94, indicating a potential upside of 21.09%. Albemarle has a consensus target price of $124.38, indicating a potential upside of 35.49%. Given Albemarle’s higher probable upside, analysts clearly believe Albemarle is more favorable than Chemours.

Summary

Chemours beats Albemarle on 9 of the 17 factors compared between the two stocks.

Chemours Company Profile

The Chemours Company is a provider of performance chemicals. The Company operates through three segments: Titanium Technologies, Fluoroproducts and Chemical Solutions. The Titanium Technologies segment is a producer of titanium dioxide (TiO2). The Fluoroproducts segment is a provider of fluoroproducts, including refrigerants and industrial fluoropolymer resins. The Chemical Solutions segment is a North American provider of industrial chemicals used in gold production, oil and gas, water treatment and other industries. It delivers customized solutions with a range of industrial and specialty chemical products for markets, including plastics and coatings, refrigeration and air conditioning, industrial, mining and oil refining. Its products include titanium dioxide, refrigerants, industrial fluoropolymer resins and a portfolio of mining and industrial chemicals, including sodium cyanide. As of December 31, 2016, the Company operates 26 production facilities located in 10 countries.

Albemarle Company Profile

Albemarle Corporation develops, manufactures, and markets engineered specialty chemicals worldwide. Its Lithium and Advanced Materials segment offers lithium compounds, including lithium carbonate, lithium hydroxide, lithium chloride, and lithium specialties, as well as reagents, such as butyllithium and lithium aluminum hydride for applications in lithium batteries for consumer electronics and automobiles, high performance greases, thermoplastic elastomers for car tires, rubber soles, plastic bottles, catalysts for chemical reactions, organic synthesis processes, life science, pharmaceutical, and other markets. It also offers cesium products for the chemical and pharmaceutical markets; zirconium, barium, and titanium products for various pyrotechnical applications; technical services, such as the handling and use of reactive lithium products; and recycling services for lithium-containing by-products. In addition, this segment offers performance catalyst solutions comprising organometallics, polymer catalysts, and curatives for polyolefin polymers, packaging, non-packaging, films, injection molding, alpha-olefins, polyurethanes, epoxies, and engineered resins markets. Its Bromine Specialties segment offers bromine and bromine-based solutions for fire safety, chemical synthesis, mercury control, water purification, beef and poultry processing, and other industrial applications, as well as oil and gas well drilling, and completion fluids applications; and tertiary amines, biocides, disinfectants, and sanitizers. Its Refining Solutions segment offers clean fuels technologies, which is primarily composed of hydroprocessing catalysts; and fluidized catalytic cracking catalysts and additives for refining industry. It serves energy storage, petroleum refining, consumer electronics, construction, automotive, lubricants, pharmaceuticals, crop protection, and custom chemistry services markets. The company was founded in 1994 and is headquartered in Charlotte, North Carolina.

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