Comparing Ingevity Corp (NGVT) and Albemarle Corporation (ALB)

Ingevity Corp (NASDAQ: NGVT) and Albemarle Corporation (NYSE:ALB) are both mid-cap basic materials companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, earnings, dividends, analyst recommendations and risk.

Analyst Ratings

This is a summary of current recommendations and price targets for Ingevity Corp and Albemarle Corporation, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ingevity Corp 0 0 5 0 3.00
Albemarle Corporation 0 6 11 0 2.65

Ingevity Corp presently has a consensus price target of $69.20, suggesting a potential upside of 5.38%. Albemarle Corporation has a consensus price target of $116.76, suggesting a potential downside of 14.89%. Given Ingevity Corp’s stronger consensus rating and higher probable upside, research analysts clearly believe Ingevity Corp is more favorable than Albemarle Corporation.

Dividends

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. Ingevity Corp has raised its dividend for 13 consecutive years.

Earnings & Valuation

This table compares Ingevity Corp and Albemarle Corporation’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Ingevity Corp $942.10 million 2.94 $216.90 million N/A N/A
Albemarle Corporation $2.81 billion 5.39 $744.58 million $7.80 17.59

Albemarle Corporation has higher revenue and earnings than Ingevity Corp.

Profitability

This table compares Ingevity Corp and Albemarle Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ingevity Corp 13.75% 76.78% 16.55%
Albemarle Corporation 31.49% 11.59% 5.42%

Insider & Institutional Ownership

83.8% of Albemarle Corporation shares are held by institutional investors. 0.7% of Albemarle Corporation shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Albemarle Corporation beats Ingevity Corp on 8 of the 15 factors compared between the two stocks.

About Ingevity Corp

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.

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.

Receive News & Ratings for Ingevity Corp Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Ingevity Corp and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply