Arcadium Lithium (NYSE:ALTM) versus Brenntag (OTCMKTS:BNTGF) Financial Contrast

Arcadium Lithium (NYSE:ALTM) and Brenntag (OTCMKTS:BNTGF) are both basic materials companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, institutional ownership, analyst recommendations, risk, earnings and profitability.

Earnings & Valuation

This table compares Arcadium Lithium and Brenntag’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arcadium Lithium	$1.21 billion	2.55	$1.12 billion	1.04	2.75
Brenntag	N/A	N/A	N/A	$2.32	30.72

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

Dividends

Arcadium Lithium pays an annual dividend of 6.00 per share and has a dividend yield of 209.8%. Brenntag pays an annual dividend of $0.87 per share and has a dividend yield of 1.2%. Arcadium Lithium pays out 576.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Brenntag pays out 37.3% of its earnings in the form of a dividend.

Profitability

This table compares Arcadium Lithium and Brenntag’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Arcadium Lithium	N/A	N/A	N/A
Brenntag	N/A	N/A	N/A

Insider & Institutional Ownership

27.0% of Arcadium Lithium shares are held by institutional investors. Comparatively, 48.2% of Brenntag shares are held by institutional investors. 0.4% of Arcadium Lithium shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and price targets for Arcadium Lithium and Brenntag, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arcadium Lithium	0	0	1	0	3.00
Brenntag	0	0	0	0	N/A

About Arcadium Lithium

Arcadium Lithium plc engages in the production of lithium chemicals products in the Asia Pacific, North America, Europe, the Middle East, Africa, and Latin America. It offers battery-grade lithium hydroxide, lithium carbonate, butyllithium and high purity lithium metal for electric vehicles, electronics, agricultural, industrial, greases, polymers, pharmaceutical, battery, and aerospace applications. The company also owns interest in various properties located in Argentina, Canada, and Western Australia. Arcadium Lithium plc was founded in 1944 and is based in Shannon, Ireland.

About Brenntag

Brenntag SE purchases and supplies various industrial and specialty chemicals, and ingredients in Germany, Europe, the Middle East, Africa, the Americas, and the Asia Pacific. The company operates in two segments, Brenntag Essentials and Brenntag Specialties. It provides just-in-time delivery, product mixing, blending, repackaging, inventory management, and drum return handling. The company serves customers in various end-market industries, including nutrition, pharma, personal care, water treatment, and lubricants; and home, industrial, and institutional markets, as well as coatings and constructions, polymers, and rubber industries. The company was founded in 1874 and is based in Essen, Germany.