ALB vs. SHW: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ALB and SHW, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
SHW’s market capitalization of 88.71 billion USD is significantly greater than ALB’s 7.91 billion USD, highlighting its more substantial market valuation.
With betas of 1.61 for ALB and 1.21 for SHW, both stocks show similar sensitivity to overall market movements.
| Symbol | ALB | SHW |
|---|---|---|
| Company Name | Albemarle Corporation | The Sherwin-Williams Company |
| Country | US | US |
| Sector | Basic Materials | Basic Materials |
| Industry | Chemicals - Specialty | Chemicals - Specialty |
| CEO | Jerry Kent Masters Jr. | Heidi G. Petz |
| Price | 67.21 USD | 354 USD |
| Market Cap | 7.91 billion USD | 88.71 billion USD |
| Beta | 1.61 | 1.21 |
| Exchange | NYSE | NYSE |
| IPO Date | February 22, 1994 | March 17, 1980 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ALB and SHW 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.
SHW
66.63%
Chemicals - Specialty Industry
- Max
- 34.45%
- Q3
- 15.78%
- Median
- 7.65%
- Q1
- 2.96%
- Min
- -12.04%
SHW’s Return on Equity of 66.63% is exceptionally high, placing it well beyond the typical range for the Chemicals - Specialty industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
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.
SHW
14.57%
Chemicals - Specialty Industry
- Max
- 20.22%
- Q3
- 10.99%
- Median
- 5.25%
- Q1
- 3.06%
- Min
- -8.62%
In the upper quartile for the Chemicals - Specialty industry, SHW’s Return on Invested Capital of 14.57% signifies a highly effective use of its capital to generate profits when compared to its peers.
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.
SHW
11.63%
Chemicals - Specialty Industry
- Max
- 23.23%
- Q3
- 10.64%
- Median
- 5.14%
- Q1
- 0.64%
- Min
- -8.93%
A Net Profit Margin of 11.63% places SHW in the upper quartile for the Chemicals - Specialty industry, signifying strong profitability and more effective cost management than most of its peers.
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.
SHW
16.50%
Chemicals - Specialty Industry
- Max
- 26.42%
- Q3
- 15.81%
- Median
- 10.07%
- Q1
- 4.82%
- Min
- -7.44%
An Operating Profit Margin of 16.50% places SHW 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.
Profitability at a Glance
| Symbol | ALB | SHW |
|---|---|---|
| Return on Equity (TTM) | -11.01% | 66.63% |
| Return on Assets (TTM) | -6.71% | 10.88% |
| Return on Invested Capital (TTM) | -8.62% | 14.57% |
| Net Profit Margin (TTM) | -22.39% | 11.63% |
| Operating Profit Margin (TTM) | -25.05% | 16.50% |
| Gross Profit Margin (TTM) | 3.53% | 48.72% |
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.
SHW
0.77
Chemicals - Specialty Industry
- Max
- 3.95
- Q3
- 2.60
- Median
- 2.04
- Q1
- 1.60
- Min
- 0.77
SHW’s Current Ratio of 0.77 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.
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.
SHW
3.10
Chemicals - Specialty Industry
- Max
- 1.65
- Q3
- 1.10
- Median
- 0.73
- Q1
- 0.55
- Min
- 0.01
With a Debt-to-Equity Ratio of 3.10, SHW operates with exceptionally high leverage compared to the Chemicals - Specialty industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
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.
SHW
9.13
Chemicals - Specialty Industry
- Max
- 13.69
- Q3
- 9.06
- Median
- 5.24
- Q1
- 1.68
- Min
- -3.09
SHW’s Interest Coverage Ratio of 9.13 is in the upper quartile for the Chemicals - Specialty industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | ALB | SHW |
|---|---|---|
| Current Ratio (TTM) | 2.11 | 0.77 |
| Quick Ratio (TTM) | 1.26 | 0.45 |
| Debt-to-Equity Ratio (TTM) | 0.36 | 3.10 |
| Debt-to-Asset Ratio (TTM) | 0.21 | 0.52 |
| Net Debt-to-EBITDA Ratio (TTM) | -2.61 | 2.82 |
| Interest Coverage Ratio (TTM) | -9.99 | 9.13 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ALB and SHW. 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.
SHW
0.85%
Chemicals - Specialty Industry
- Max
- 9.19%
- Q3
- 2.44%
- Median
- 1.46%
- Q1
- 0.25%
- Min
- 0.00%
SHW’s Dividend Yield of 0.85% is consistent with its peers in the Chemicals - Specialty industry, providing a dividend return that is standard for its sector.
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.
SHW
27.66%
Chemicals - Specialty Industry
- Max
- 163.70%
- Q3
- 57.04%
- Median
- 30.02%
- Q1
- 12.51%
- Min
- 0.00%
SHW’s Dividend Payout Ratio of 27.66% is within the typical range for the Chemicals - Specialty industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | ALB | SHW |
|---|---|---|
| Dividend Yield (TTM) | 2.41% | 0.85% |
| Dividend Payout Ratio (TTM) | -31.01% | 27.66% |
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.
SHW
32.94
Chemicals - Specialty Industry
- Max
- 56.68
- Q3
- 33.75
- Median
- 23.45
- Q1
- 16.09
- Min
- 7.50
SHW’s P/E Ratio of 32.94 is within the middle range for the Chemicals - Specialty industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
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.
SHW
2.72
Chemicals - Specialty Industry
- Max
- 6.58
- Q3
- 3.23
- Median
- 1.64
- Q1
- 0.96
- Min
- 0.16
SHW’s Forward PEG Ratio of 2.72 is within the middle range of its peers in the Chemicals - Specialty industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
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.
SHW
3.85
Chemicals - Specialty Industry
- Max
- 3.76
- Q3
- 2.31
- Median
- 1.38
- Q1
- 0.89
- Min
- 0.16
With a P/S Ratio of 3.85, SHW 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.
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.
SHW
21.38
Chemicals - Specialty Industry
- Max
- 6.73
- Q3
- 3.78
- Median
- 1.56
- Q1
- 1.27
- Min
- 0.35
At 21.38, SHW’s P/B Ratio is at an extreme premium to the Chemicals - Specialty 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 | SHW |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | -6.93 | 32.94 |
| Forward PEG Ratio (TTM) | 37.21 | 2.72 |
| Price-to-Sales Ratio (P/S, TTM) | 1.55 | 3.85 |
| Price-to-Book Ratio (P/B, TTM) | 0.79 | 21.38 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | -56.65 | 40.78 |
| EV-to-EBITDA (TTM) | -12.35 | 22.68 |
| EV-to-Sales (TTM) | 1.97 | 4.40 |