Analyzing Albemarle (ALB) & Taminco (TAM)

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

Analyst Ratings

This is a breakdown of recent recommendations for Albemarle and Taminco, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Albemarle 0 6 13 0 2.68
Taminco 0 0 0 0 N/A

Albemarle presently has a consensus price target of $125.58, suggesting a potential downside of 1.50%. Given Albemarle’s higher possible upside, equities analysts plainly believe Albemarle is more favorable than Taminco.

Dividends

Albemarle pays an annual dividend of $1.28 per share and has a dividend yield of 1.0%. Taminco does not pay a dividend. Albemarle pays out 45.7% of its earnings in the form of a dividend. Albemarle has raised its dividend for 14 consecutive years.

Profitability

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

Net Margins Return on Equity Return on Assets
Albemarle 30.07% 11.61% 5.99%
Taminco N/A N/A N/A

Insider and Institutional Ownership

88.1% of Albemarle shares are held by institutional investors. 0.7% of Albemarle shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings and Valuation

This table compares Albemarle and Taminco’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Albemarle $2.68 billion 5.28 $643.67 million $2.80 45.71
Taminco N/A N/A N/A $0.66 39.39

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

Summary

Albemarle beats Taminco on 12 of the 13 factors compared between the two stocks.

About Albemarle

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 Taminco

Taminco Corp is a producer of alkylamines and alkylamine derivatives. The Company’s products are used by its customers in the manufacturing of everyday products primarily for the agriculture, water treatment, personal and home care, animal nutrition and oil and gas end-markets. It operates in 19 countries with seven production facilities and, as of December 31, 2012, had an installed production capacity of 1,272 thousand tons. The Company has three business segments: Functional Amines, Specialty Amines, and Crop Protection. In March 2014, the Company announced that it completed the acquisition of the formic acid business of Kemira Oyj. Its main shareholder is Eastman Chemical Company.

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