ALB vs. DOW: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ALB and DOW, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
DOW’s market capitalization of 20.12 billion USD is significantly greater than ALB’s 7.91 billion USD, highlighting its more substantial market valuation.
ALB’s beta of 1.61 points to significantly higher volatility compared to DOW (beta: 0.88), suggesting ALB has greater potential for both gains and losses relative to market movements.
Symbol | ALB | DOW |
---|---|---|
Company Name | Albemarle Corporation | Dow Inc. |
Country | US | US |
Sector | Basic Materials | Basic Materials |
Industry | Chemicals - Specialty | Chemicals |
CEO | Jerry Kent Masters Jr. | James R. Fitterling |
Price | 67.21 USD | 28.46 USD |
Market Cap | 7.91 billion USD | 20.12 billion USD |
Beta | 1.61 | 0.88 |
Exchange | NYSE | NYSE |
IPO Date | February 22, 1994 | March 20, 2019 |
ADR | No | No |
Historical Performance
This chart compares the performance of ALB and DOW by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
ALB
-11.01%
Chemicals - Specialty Industry
- Max
- 34.45%
- Q3
- 15.78%
- Median
- 7.65%
- Q1
- 2.96%
- Min
- -12.04%
ALB has a negative Return on Equity of -11.01%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.
DOW
1.63%
Chemicals Industry
- Max
- 12.03%
- Q3
- 11.24%
- Median
- 1.63%
- Q1
- -4.72%
- Min
- -26.84%
DOW’s Return on Equity of 1.63% is on par with the norm for the Chemicals industry, indicating its profitability relative to shareholder equity is typical for the sector.
Return on Invested Capital
ALB
-8.62%
Chemicals - Specialty Industry
- Max
- 20.22%
- Q3
- 10.99%
- Median
- 5.25%
- Q1
- 3.06%
- Min
- -8.62%
ALB has a negative Return on Invested Capital of -8.62%. This indicates that its operations are failing to generate a profit on the total capital invested, signaling significant inefficiency or value destruction.
DOW
1.39%
Chemicals Industry
- Max
- 16.50%
- Q3
- 7.11%
- Median
- -0.79%
- Q1
- -3.65%
- Min
- -4.54%
DOW’s Return on Invested Capital of 1.39% is in line with the norm for the Chemicals industry, reflecting a standard level of efficiency in generating profits from its capital base.
Net Profit Margin
ALB
-22.39%
Chemicals - Specialty Industry
- Max
- 23.23%
- Q3
- 10.64%
- Median
- 5.14%
- Q1
- 0.64%
- Min
- -8.93%
ALB has a negative Net Profit Margin of -22.39%, indicating the company is operating at a net loss as its expenses exceeded its revenues.
DOW
0.68%
Chemicals Industry
- Max
- 8.25%
- Q3
- 5.49%
- Median
- -1.29%
- Q1
- -8.40%
- Min
- -16.54%
DOW’s Net Profit Margin of 0.68% is aligned with the median group of its peers in the Chemicals industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin
ALB
-25.05%
Chemicals - Specialty Industry
- Max
- 26.42%
- Q3
- 15.81%
- Median
- 10.07%
- Q1
- 4.82%
- Min
- -7.44%
ALB has a negative Operating Profit Margin of -25.05%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.
DOW
3.25%
Chemicals Industry
- Max
- 13.39%
- Q3
- 8.15%
- Median
- 3.25%
- Q1
- -1.95%
- Min
- -6.64%
DOW’s Operating Profit Margin of 3.25% is around the midpoint for the Chemicals industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
Symbol | ALB | DOW |
---|---|---|
Return on Equity (TTM) | -11.01% | 1.63% |
Return on Assets (TTM) | -6.71% | 0.50% |
Return on Invested Capital (TTM) | -8.62% | 1.39% |
Net Profit Margin (TTM) | -22.39% | 0.68% |
Operating Profit Margin (TTM) | -25.05% | 3.25% |
Gross Profit Margin (TTM) | 3.53% | 9.38% |
Financial Strength
Current Ratio
ALB
2.11
Chemicals - Specialty Industry
- Max
- 3.95
- Q3
- 2.60
- Median
- 2.04
- Q1
- 1.60
- Min
- 0.77
ALB’s Current Ratio of 2.11 aligns with the median group of the Chemicals - Specialty industry, indicating that its short-term liquidity is in line with its sector peers.
DOW
1.54
Chemicals Industry
- Max
- 3.17
- Q3
- 2.36
- Median
- 1.51
- Q1
- 1.33
- Min
- 0.00
DOW’s Current Ratio of 1.54 aligns with the median group of the Chemicals industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio
ALB
0.36
Chemicals - Specialty Industry
- Max
- 1.65
- Q3
- 1.10
- Median
- 0.73
- Q1
- 0.55
- Min
- 0.01
Falling into the lower quartile for the Chemicals - Specialty industry, ALB’s Debt-to-Equity Ratio of 0.36 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
DOW
1.07
Chemicals Industry
- Max
- 1.85
- Q3
- 1.44
- Median
- 1.06
- Q1
- 0.80
- Min
- 0.45
DOW’s Debt-to-Equity Ratio of 1.07 is typical for the Chemicals industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio
ALB
-9.99
Chemicals - Specialty Industry
- Max
- 13.69
- Q3
- 9.06
- Median
- 5.24
- Q1
- 1.68
- Min
- -3.09
ALB has a negative Interest Coverage Ratio of -9.99. This indicates that its earnings were insufficient to cover even its operational costs, let alone its interest payments, signaling significant financial distress.
DOW
1.67
Chemicals Industry
- Max
- 3.78
- Q3
- 3.48
- Median
- 0.92
- Q1
- -0.29
- Min
- -0.99
DOW’s Interest Coverage Ratio of 1.67 is positioned comfortably within the norm for the Chemicals industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
Symbol | ALB | DOW |
---|---|---|
Current Ratio (TTM) | 2.11 | 1.54 |
Quick Ratio (TTM) | 1.26 | 0.90 |
Debt-to-Equity Ratio (TTM) | 0.36 | 1.07 |
Debt-to-Asset Ratio (TTM) | 0.21 | 0.31 |
Net Debt-to-EBITDA Ratio (TTM) | -2.61 | 3.65 |
Interest Coverage Ratio (TTM) | -9.99 | 1.67 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ALB and DOW. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
ALB
2.41%
Chemicals - Specialty Industry
- Max
- 9.19%
- Q3
- 2.44%
- Median
- 1.46%
- Q1
- 0.25%
- Min
- 0.00%
ALB’s Dividend Yield of 2.41% is consistent with its peers in the Chemicals - Specialty industry, providing a dividend return that is standard for its sector.
DOW
9.84%
Chemicals Industry
- Max
- 10.37%
- Q3
- 8.69%
- Median
- 2.57%
- Q1
- 0.99%
- Min
- 0.00%
With a Dividend Yield of 9.84%, DOW offers a more attractive income stream than most of its peers in the Chemicals industry, signaling a strong commitment to shareholder returns.
Dividend Payout Ratio
ALB
-31.01%
Chemicals - Specialty Industry
- Max
- 163.70%
- Q3
- 57.04%
- Median
- 30.02%
- Q1
- 12.51%
- Min
- 0.00%
ALB has a negative Dividend Payout Ratio of -31.01%. This typically means the company paid a dividend despite reporting a net loss, a situation that may signal financial instability.
DOW
678.28%
Chemicals Industry
- Max
- 678.28%
- Q3
- 47.18%
- Median
- 21.29%
- Q1
- 10.87%
- Min
- 0.00%
DOW’s Dividend Payout Ratio of 678.28% is above 100%. This means the company is paying out more in dividends than it earned, a practice that is often unsustainable and could indicate a risk to future dividend stability.
Dividend at a Glance
Symbol | ALB | DOW |
---|---|---|
Dividend Yield (TTM) | 2.41% | 9.84% |
Dividend Payout Ratio (TTM) | -31.01% | 678.28% |
Valuation
Price-to-Earnings Ratio
ALB
-6.93
Chemicals - Specialty Industry
- Max
- 56.68
- Q3
- 33.75
- Median
- 23.45
- Q1
- 16.09
- Min
- 7.50
ALB has a negative P/E Ratio of -6.93. This occurs when a company has negative earnings (a net loss), making the ratio unsuitable for valuation analysis.
DOW
69.37
Chemicals Industry
- Max
- 10.33
- Q3
- 10.33
- Median
- 8.69
- Q1
- 7.64
- Min
- 3.94
At 69.37, DOW’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Chemicals industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
Forward P/E to Growth Ratio
ALB
37.21
Chemicals - Specialty Industry
- Max
- 6.58
- Q3
- 3.23
- Median
- 1.64
- Q1
- 0.96
- Min
- 0.16
ALB’s Forward PEG Ratio of 37.21 is exceptionally high for the Chemicals - Specialty industry. This suggests its stock price is very high relative to its expected earnings growth, signaling significant overvaluation risk.
DOW
0.49
Chemicals Industry
- Max
- 0.63
- Q3
- 0.57
- Median
- 0.49
- Q1
- 0.34
- Min
- 0.01
The Forward PEG Ratio is often not a primary valuation metric in the Chemicals industry.
Price-to-Sales Ratio
ALB
1.55
Chemicals - Specialty Industry
- Max
- 3.76
- Q3
- 2.31
- Median
- 1.38
- Q1
- 0.89
- Min
- 0.16
ALB’s P/S Ratio of 1.55 aligns with the market consensus for the Chemicals - Specialty industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
DOW
0.47
Chemicals Industry
- Max
- 1.07
- Q3
- 0.67
- Median
- 0.45
- Q1
- 0.30
- Min
- 0.09
DOW’s P/S Ratio of 0.47 aligns with the market consensus for the Chemicals industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio
ALB
0.79
Chemicals - Specialty Industry
- Max
- 6.73
- Q3
- 3.78
- Median
- 1.56
- Q1
- 1.27
- Min
- 0.35
ALB’s P/B Ratio of 0.79 is in the lower quartile for the Chemicals - Specialty industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
DOW
1.20
Chemicals Industry
- Max
- 1.20
- Q3
- 1.15
- Median
- 1.00
- Q1
- 0.67
- Min
- 0.43
At 1.20, DOW’s P/B Ratio is at an extreme premium to the Chemicals industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
Valuation at a Glance
Symbol | ALB | DOW |
---|---|---|
Price-to-Earnings Ratio (P/E, TTM) | -6.93 | 69.37 |
Forward PEG Ratio (TTM) | 37.21 | 0.49 |
Price-to-Sales Ratio (P/S, TTM) | 1.55 | 0.47 |
Price-to-Book Ratio (P/B, TTM) | 0.79 | 1.20 |
Price-to-Free Cash Flow Ratio (P/FCF, TTM) | -56.65 | -40.64 |
EV-to-EBITDA (TTM) | -12.35 | 8.11 |
EV-to-Sales (TTM) | 1.97 | 0.86 |