Albemarle Corporation (NYSE: ALB) and OM Group (NYSE:OMG) are both basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, institutional ownership, profitabiliy, risk and dividends.

Profitability

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

Net Margins Return on Equity Return on Assets
Albemarle Corporation 17.02% 11.97% 5.06%
OM Group N/A N/A N/A

Institutional & Insider Ownership

86.1% of Albemarle Corporation shares are owned by institutional investors. 0.7% of Albemarle Corporation shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Albemarle Corporation and OM Group’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Albemarle Corporation $2.74 billion 4.29 $724.01 million $4.10 25.90
OM Group N/A N/A N/A N/A N/A

Albemarle Corporation has higher revenue and earnings than OM Group.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Albemarle Corporation and OM Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Albemarle Corporation 0 2 8 1 2.91
OM Group 0 0 0 0 N/A

Albemarle Corporation presently has a consensus target price of $113.73, indicating a potential upside of 7.10%. Given Albemarle Corporation’s higher possible upside, research analysts plainly believe Albemarle Corporation is more favorable than OM Group.

Dividends

Albemarle Corporation pays an annual dividend of $1.28 per share and has a dividend yield of 1.2%. OM Group does not pay a dividend. Albemarle Corporation pays out 31.2% of its earnings in the form of a dividend. OM Group has increased its dividend for 13 consecutive years.

Summary

Albemarle Corporation beats OM Group on 10 of the 12 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.

OM Group Company Profile

OM Group, Inc. is a United States-based industrial company. The Company is engaged in serving global markets, including automotive systems, electronic devices, aerospace and defense, industrial and medical. It operates in three business segments: Magnetic Technologies, Battery Technologies and Specialty Chemicals. Its Magnetic Technologies segment develops, manufactures and distributes industrial-use magnetic materials and related products to an array of end markets, including automotive systems, electrical installation technology, industrial, retail and renewable energy. The Company’s Battery Technologies segment provides batteries, battery management systems, and energetic devices for defense, space and medical markets. The Company’s Specialty Chemicals segment develops, produces and supplies chemicals for electronic applications, industrial applications including coatings, composites and tire, and photomasks used by customers to produce semiconductors and related products.

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