Seek Returns logo

ALB vs. LIN: A Head-to-Head Stock Comparison

Updated on

Here’s a clear look at ALB and LIN, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Overview

LIN’s market capitalization of 223.87 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 LIN (beta: 0.98), suggesting ALB has greater potential for both gains and losses relative to market movements.

SymbolALBLIN
Company NameAlbemarle CorporationLinde plc
CountryUSGB
SectorBasic MaterialsBasic Materials
IndustryChemicals - SpecialtyChemicals - Specialty
CEOJerry Kent Masters Jr.Sanjiv Lamba
Price67.21 USD475.58 USD
Market Cap7.91 billion USD223.87 billion USD
Beta1.610.98
ExchangeNYSENASDAQ
IPO DateFebruary 22, 1994June 17, 1992
ADRNoNo

Historical Performance

This chart compares the performance of ALB and LIN 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.

ALB vs. LIN: Growth of a $10,000 investment over the past one year.

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.

LIN

17.23%

Chemicals - Specialty Industry

Max
34.45%
Q3
15.78%
Median
7.65%
Q1
2.96%
Min
-12.04%

In the upper quartile for the Chemicals - Specialty industry, LIN’s Return on Equity of 17.23% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

ALB vs. LIN: A comparison of their ROE against the Chemicals - Specialty industry benchmark.

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.

LIN

8.94%

Chemicals - Specialty Industry

Max
20.22%
Q3
10.99%
Median
5.25%
Q1
3.06%
Min
-8.62%

LIN’s Return on Invested Capital of 8.94% is in line with the norm for the Chemicals - Specialty industry, reflecting a standard level of efficiency in generating profits from its capital base.

ALB vs. LIN: A comparison of their ROIC against the Chemicals - Specialty industry benchmark.

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.

LIN

20.02%

Chemicals - Specialty Industry

Max
23.23%
Q3
10.64%
Median
5.14%
Q1
0.64%
Min
-8.93%

A Net Profit Margin of 20.02% places LIN in the upper quartile for the Chemicals - Specialty industry, signifying strong profitability and more effective cost management than most of its peers.

ALB vs. LIN: A comparison of their Net Profit Margin against the Chemicals - Specialty industry benchmark.

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.

LIN

26.42%

Chemicals - Specialty Industry

Max
26.42%
Q3
15.81%
Median
10.07%
Q1
4.82%
Min
-7.44%

An Operating Profit Margin of 26.42% places LIN in the upper quartile for the Chemicals - Specialty industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

ALB vs. LIN: A comparison of their Operating Margin against the Chemicals - Specialty industry benchmark.

Profitability at a Glance

SymbolALBLIN
Return on Equity (TTM)-11.01%17.23%
Return on Assets (TTM)-6.71%7.99%
Return on Invested Capital (TTM)-8.62%8.94%
Net Profit Margin (TTM)-22.39%20.02%
Operating Profit Margin (TTM)-25.05%26.42%
Gross Profit Margin (TTM)3.53%42.45%

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.

LIN

0.94

Chemicals - Specialty Industry

Max
3.95
Q3
2.60
Median
2.04
Q1
1.60
Min
0.77

LIN’s Current Ratio of 0.94 falls into the lower quartile for the Chemicals - Specialty industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

ALB vs. LIN: A comparison of their Current Ratio against the Chemicals - Specialty industry benchmark.

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.

LIN

0.63

Chemicals - Specialty Industry

Max
1.65
Q3
1.10
Median
0.73
Q1
0.55
Min
0.01

LIN’s Debt-to-Equity Ratio of 0.63 is typical for the Chemicals - Specialty industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

ALB vs. LIN: A comparison of their D/E Ratio against the Chemicals - Specialty industry benchmark.

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.

LIN

34.75

Chemicals - Specialty Industry

Max
13.69
Q3
9.06
Median
5.24
Q1
1.68
Min
-3.09

With an Interest Coverage Ratio of 34.75, LIN demonstrates a superior capacity to service its debt, placing it well above the typical range for the Chemicals - Specialty industry. This stems from either robust earnings or a conservative debt load.

ALB vs. LIN: A comparison of their Interest Coverage against the Chemicals - Specialty industry benchmark.

Financial Strength at a Glance

SymbolALBLIN
Current Ratio (TTM)2.110.94
Quick Ratio (TTM)1.260.80
Debt-to-Equity Ratio (TTM)0.360.63
Debt-to-Asset Ratio (TTM)0.210.29
Net Debt-to-EBITDA Ratio (TTM)-2.611.48
Interest Coverage Ratio (TTM)-9.9934.75

Growth

The following charts compare key year-over-year (YoY) growth metrics for ALB and LIN. These metrics are based on the companies’ annual financial reports.

Revenue Growth

ALB vs. LIN: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

ALB vs. LIN: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

ALB vs. LIN: A comparison of their annual year-over-year 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.

LIN

1.22%

Chemicals - Specialty Industry

Max
9.19%
Q3
2.44%
Median
1.46%
Q1
0.25%
Min
0.00%

LIN’s Dividend Yield of 1.22% is consistent with its peers in the Chemicals - Specialty industry, providing a dividend return that is standard for its sector.

ALB vs. LIN: A comparison of their Dividend Yield against the Chemicals - Specialty industry benchmark.

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.

LIN

40.75%

Chemicals - Specialty Industry

Max
163.70%
Q3
57.04%
Median
30.02%
Q1
12.51%
Min
0.00%

LIN’s Dividend Payout Ratio of 40.75% is within the typical range for the Chemicals - Specialty industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

ALB vs. LIN: A comparison of their Payout Ratio against the Chemicals - Specialty industry benchmark.

Dividend at a Glance

SymbolALBLIN
Dividend Yield (TTM)2.41%1.22%
Dividend Payout Ratio (TTM)-31.01%40.75%

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.

LIN

34.05

Chemicals - Specialty Industry

Max
56.68
Q3
33.75
Median
23.45
Q1
16.09
Min
7.50

A P/E Ratio of 34.05 places LIN in the upper quartile for the Chemicals - Specialty industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

ALB vs. LIN: A comparison of their P/E Ratio against the Chemicals - Specialty industry benchmark.

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.

LIN

4.93

Chemicals - Specialty Industry

Max
6.58
Q3
3.23
Median
1.64
Q1
0.96
Min
0.16

A Forward PEG Ratio of 4.93 places LIN in the upper quartile for the Chemicals - Specialty industry. This suggests the stock is potentially expensive compared to its peers relative to its growth forecast, which may warrant caution.

ALB vs. LIN: A comparison of their Forward PEG Ratio against the Chemicals - Specialty industry benchmark.

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.

LIN

6.78

Chemicals - Specialty Industry

Max
3.76
Q3
2.31
Median
1.38
Q1
0.89
Min
0.16

With a P/S Ratio of 6.78, LIN trades at a valuation that eclipses even the highest in the Chemicals - Specialty industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.

ALB vs. LIN: A comparison of their P/S Ratio against the Chemicals - Specialty industry benchmark.

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.

LIN

5.92

Chemicals - Specialty Industry

Max
6.73
Q3
3.78
Median
1.56
Q1
1.27
Min
0.35

LIN’s P/B Ratio of 5.92 is in the upper tier for the Chemicals - Specialty industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

ALB vs. LIN: A comparison of their P/B Ratio against the Chemicals - Specialty industry benchmark.

Valuation at a Glance

SymbolALBLIN
Price-to-Earnings Ratio (P/E, TTM)-6.9334.05
Forward PEG Ratio (TTM)37.214.93
Price-to-Sales Ratio (P/S, TTM)1.556.78
Price-to-Book Ratio (P/B, TTM)0.795.92
Price-to-Free Cash Flow Ratio (P/FCF, TTM)-56.6545.58
EV-to-EBITDA (TTM)-12.3519.26
EV-to-Sales (TTM)1.977.34