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Albemarle’s Performance against Its Peers and ETFs

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Dec. 4 2020, Updated 3:52 p.m. ET

Albemarle and its peers

In this article, we’ll compare Albemarle (ALB) with its peers:

  • The PE (price-to-earnings) ratios of Albemarle, W.R. Grace & Company (GRA), FMC (FMC), Chemtura Corporation (CHMT), and The Chemours Company (CC) are 32.9x, 52.3x, 37.1x, 3.4x, and 7.0x, respectively.

  • The PBV (price-to-book value) ratios of Albemarle, FMC, Chemtura, and Chemours are 1.9x, 2.6x, 2.2x, and 3.7x, respectively.

Thus, Albemarle’s peers have outperformed it based on PBV.

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ETFs that invest in Albemarle

The Global X Lithium ETF (LIT) invests 12.8% of its holdings in Albemarle. The ETF tracks a market-cap–weighted index of global lithium producers.

The SPDR Russell 1000 Low Volatility ETF (LGLV) invests 1.5% of its holdings in Albemarle. The ETF tracks an index of the least-volatile Russell 1000 Index securities.

The iShares Dow Jones US Basic Materials Sector ETF (IYM) invests 1.1% of its holdings in Albemarle. The ETF tracks a broad, market-cap–weighted index of US basic material companies, including coal companies.

Albemarle and its ETFs compared

Now let’s compare Albemarle with the ETFs that invest in it:

  • The year-to-date price movements of Albemarle, LIT, LGLV, and IYM are -8.3%, -6.1%, 2.6%, and -8.3%, respectively.
  • The PE (price-to-earnings) ratios of Albemarle, LIT, LGLV, and IYM are 32.9x, 28.9x, 18.1x, and 21.3x, respectively.
  • The PBV (price-to-book value) ratios of Albemarle, LIT, LGLV, and IYM are 1.9x, 1.6x, 2.5x, and 2.3x, respectively.

According to the above findings, the ETFs have outperformed Albemarle based on price movement and PBV. However, the company is far ahead of its ETFs based on PE.

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