Albemarle Corporation (NYSE: ALB) and Calgon Carbon Corporation (NYSE:CCC) are both basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, profitability, analyst recommendations, dividends, risk, valuation and institutional ownership.
Albemarle Corporation pays an annual dividend of $1.28 per share and has a dividend yield of 0.9%. Calgon Carbon Corporation pays an annual dividend of C$0.20 per share and has a dividend yield of 0.9%. Albemarle Corporation pays out 16.6% of its earnings in the form of a dividend. Calgon Carbon Corporation pays out 166.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Calgon Carbon Corporation has raised its dividend for 13 consecutive years. Calgon Carbon Corporation is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Insider and Institutional Ownership
83.8% of Albemarle Corporation shares are owned by institutional investors. Comparatively, 81.4% of Calgon Carbon Corporation shares are owned by institutional investors. 0.7% of Albemarle Corporation shares are owned by company insiders. Comparatively, 2.3% of Calgon Carbon Corporation shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This table compares Albemarle Corporation and Calgon Carbon Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Calgon Carbon Corporation||0.97%||5.65%||2.75%|
This is a breakdown of recent recommendations for Albemarle Corporation and Calgon Carbon Corporation, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Calgon Carbon Corporation||1||3||0||0||1.75|
Albemarle Corporation presently has a consensus price target of $125.33, suggesting a potential downside of 10.87%. Calgon Carbon Corporation has a consensus price target of C$19.63, suggesting a potential downside of 8.51%. Given Calgon Carbon Corporation’s higher possible upside, analysts plainly believe Calgon Carbon Corporation is more favorable than Albemarle Corporation.
Volatility and Risk
Albemarle Corporation has a beta of 1.72, suggesting that its stock price is 72% more volatile than the S&P 500. Comparatively, Calgon Carbon Corporation has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500.
Earnings and Valuation
This table compares Albemarle Corporation and Calgon Carbon Corporation’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Albemarle Corporation||$2.68 billion||5.80||$643.67 million||$7.73||18.19|
|Calgon Carbon Corporation||$514.25 million||2.12||$13.79 million||C$0.12||178.76|
Albemarle Corporation has higher revenue and earnings than Calgon Carbon Corporation. Albemarle Corporation is trading at a lower price-to-earnings ratio than Calgon Carbon Corporation, indicating that it is currently the more affordable of the two stocks.
Albemarle Corporation beats Calgon Carbon Corporation on 12 of the 17 factors compared between the two stocks.
About Albemarle Corporation
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.
About Calgon Carbon Corporation
Calgon Carbon Corporation is a manufacturer of activated carbon, with capabilities in ultraviolet (UV) light disinfection. The Company provides purification solutions for drinking water, wastewater, pollution abatement, and a range of industrial and commercial manufacturing processes. The Company operates through four segments: Activated Carbon and Service, Equipment, Consumer and Other. The Company’s products and services are designed to protect human health and the environment from harmful contaminants in water, and air. The Company provides purification solutions for drinking water, wastewater, pollution abatement, and a range of industrial and commercial manufacturing processes. The Company operates in the United States, Europe, Japan, Africa, Canada, China, India, Latin America, and in other parts of Asia.
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