Head to Head Survey: FUCHS (OTCMKTS:FUPBY) vs. Albemarle (NYSE:ALB)

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

Dividends

FUCHS pays an annual dividend of $0.20 per share and has a dividend yield of 1.7%. Albemarle pays an annual dividend of $1.64 per share and has a dividend yield of 1.5%. FUCHS pays out 26.7% of its earnings in the form of a dividend. Albemarle pays out 607.4% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Albemarle has raised its dividend for 30 consecutive years. FUCHS is clearly the better dividend stock, given its higher yield and lower payout ratio.

Valuation and Earnings

This table compares FUCHS and Albemarle”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
FUCHS	$4.03 billion	1.57	$346.21 million	$0.75	16.15
Albemarle	$5.14 billion	2.43	-$510.63 million	$0.27	392.46

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

Volatility & Risk

FUCHS has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500. Comparatively, Albemarle has a beta of 1.33, indicating that its share price is 33% more volatile than the S&P 500.

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
FUCHS	0	2	2	1	2.80
Albemarle	2	9	15	0	2.50

Albemarle has a consensus target price of $188.09, suggesting a potential upside of 77.50%. Given Albemarle’s higher probable upside, analysts clearly believe Albemarle is more favorable than FUCHS.

Institutional & Insider Ownership

92.9% of Albemarle shares are held by institutional investors. 0.4% of Albemarle shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
FUCHS	9.04%	17.40%	12.30%
Albemarle	3.09%	10.96%	5.39%

About FUCHS

Fuchs SE develops, produces, and sells lubricants and related specialties in Europe, the Middle East, Africa, the Asia Pacific, and North and South America. The company offers automotive lubricants, such as biodegradable lubricants, central and mobile hydraulic oils, dry coatings, engine and gear oils, motorcycle/two wheelers, and service fluids, as well as various oils for agriculture sector. It also provides industrial lubricants, including chain lubricants, dry coatings, gear and hydraulic oils, machine oils, open gear lubricants, rapidly biodegradable lubricants, compressor and refrigeration oils, release agents, slideways oils, fluids and industrial oils, textile machine oils, and turbine oils. In addition, the company offers lubricating greases comprising assembly pastes, biodegradable greases, food grade greases, multi-purpose/long-life greases, pastes for extreme temperatures, perfluorinated pastes, and wheel bearing greases, as well as gear boxes, and greases for central lubricating system, extreme temperature, machine tools, plain and roller bearings, rail vehicles, spray cans or rattle cans, and solid lubricants. Further, it provides metal processing lubricants consisting of cleaners, corrosion preventives, cutting and grinding, forming lubricants, and quenching oils; and special application lubricants for application equipment, chain lubrication, dry coatings, food and beverage, gears, sugar processing, railway traffic, plain and roller bearings, glass manufacturing process, hot forming, maintenance, open gears, pastes, release agents, other specialties, special greases, and wind power plants. Additionally, the company offers open gear and surface coating services. The company was formerly known as Fuchs Petrolub SE and changed its name to Fuchs SE in July 2023. Fuchs SE was founded in 1931 and is headquartered in Mannheim, Germany.

About Albemarle

Albemarle Corporation develops, manufactures, and markets engineered specialty chemicals worldwide. It operates through three segments: Energy Storage, Specialties and Ketjen. The Energy Storage segment offers lithium compounds, including lithium carbonate, lithium hydroxide, and lithium chloride; technical services for the handling and use of reactive lithium products; and lithium-containing by-products recycling services. The Specialties segment provides bromine-based specialty chemicals, including elemental bromine, alkyl and inorganic bromides, brominated powdered activated carbon, and other bromine fine chemicals; lithium specialties, such as butyllithium and lithium aluminum hydride; develops and manufactures cesium products for the chemical and pharmaceutical industries; and zirconium, barium, and titanium products for pyrotechnical applications that include airbag initiators. The Ketjen segment offers clean fuels technologies (CFT), which is composed of hydroprocessing catalysts (HPC) together with isomerization and akylation catalysts; fluidized catalytic cracking (FCC) catalysts and additives; and performance catalyst solutions (PCS), which is composed of organometallics and curatives. The company serves the energy storage, petroleum refining, consumer electronics, construction, automotive, lubricants, pharmaceuticals, and crop protection markets. Albemarle Corporation was founded in 1887 and is headquartered in Charlotte, North Carolina.