Home > Comparison > Basic Materials > APD vs ALB
The strategic rivalry between Air Products and Chemicals, Inc. and Albemarle Corporation shapes the specialty chemicals sector’s evolution. Air Products operates as a capital-intensive industrial gas supplier, while Albemarle focuses on engineered specialty chemicals, including lithium and catalysts. This face-off highlights a contest between stable industrial services and high-growth chemical innovation. This analysis aims to identify which company offers superior risk-adjusted returns for a diversified portfolio in 2026.
Table of contents
Companies Overview
Air Products and Chemicals, Inc. and Albemarle Corporation stand as key players in the specialty chemicals market with distinct strategic priorities.
Air Products and Chemicals, Inc.: Global Leader in Industrial Gases
Air Products commands a dominant position in specialty gases, producing atmospheric and process gases like oxygen and hydrogen. Its revenue hinges on supplying diverse industries, including refining and electronics. In 2026, the company sharpens its focus on hydrogen compression systems through a strategic collaboration with Baker Hughes, aiming to lead the clean energy transition.
Albemarle Corporation: Specialty Chemicals Innovator
Albemarle specializes in engineered chemicals, primarily lithium compounds, bromine products, and catalysts. Its core revenue derives from serving energy storage, electronics, and automotive sectors. The company’s 2026 strategy emphasizes expanding lithium production for electric vehicle batteries while maintaining strength in bromine-based fire safety and chemical catalysts.
Strategic Collision: Similarities & Divergences
Both firms operate in specialty chemicals but diverge sharply in business models. Air Products focuses on industrial gas supply and infrastructure, while Albemarle centers on chemical materials and battery components. Their competition unfolds in the energy transition arena, with Air Products pushing hydrogen solutions and Albemarle advancing lithium technologies. Investors face distinct profiles: Air Products offers stability with industrial gas dominance; Albemarle carries higher volatility tied to lithium market cycles.
Income Statement Comparison
This comparison dissects the core profitability and scalability of both corporate engines to reveal who dominates the bottom line:
| Metric | Air Products and Chemicals, Inc. (APD) | Albemarle Corporation (ALB) |
|---|---|---|
| Revenue | 12.04B | 5.38B |
| Cost of Revenue | 8.26B | 5.29B |
| Operating Expenses | 4.66B | 1.86B |
| Gross Profit | 3.78B | 84M |
| EBITDA | 1.34B | -9.11M |
| EBIT | -227M | -598M |
| Interest Expense | 214M | 166M |
| Net Income | -395M | -1.32B |
| EPS | -1.77 | -11.2 |
| Fiscal Year | 2025 | 2024 |
Income Statement Analysis: The Bottom-Line Duel
This income statement comparison reveals which company drives greater efficiency and profit conversion in their core operations over recent years.
Air Products and Chemicals, Inc. Analysis
Air Products’ revenue grew 16.6% over five years but declined slightly by 0.5% in 2025 to $12B. The gross margin remains solid at 31.4%, yet net income swung from a $3.8B profit in 2024 to a $395M loss in 2025, reflecting margin compression and operational setbacks. EBIT turned negative, signaling efficiency challenges.
Albemarle Corporation Analysis
Albemarle posted a 71.9% revenue increase over five years but plunged 44.1% in 2024 to $5.4B. The gross margin collapsed to 1.6%, and net income fell sharply to a $1.3B loss, driven by rising expenses and negative EBIT margin of -11.1%. The company faces severe profitability pressure and deteriorating operational performance.
Verdict: Margin Resilience vs. Revenue Volatility
Air Products maintains stronger gross margins and a larger revenue base, though it recently suffered a net loss. Albemarle’s drastic revenue decline and margin erosion highlight deeper struggles. Air Products’ profile offers more resilience, while Albemarle’s volatility poses higher risk for investors prioritizing stable profitability.
Financial Ratios Comparison
These vital ratios act as a diagnostic tool to expose the underlying fiscal health, valuation premiums, and capital efficiency for the companies compared below:
| Ratios | Air Products and Chemicals, Inc. (APD) | Albemarle Corporation (ALB) |
|---|---|---|
| ROE | -2.63% (2025) | -11.84% (2024) |
| ROIC | -1.82% (2025) | -11.81% (2024) |
| P/E | -154.0 (2025) | -8.58 (2024) |
| P/B | 4.04 (2025) | 1.02 (2024) |
| Current Ratio | 1.38 (2025) | 1.95 (2024) |
| Quick Ratio | 1.20 (2025) | 1.19 (2024) |
| D/E | 1.23 (2025) | 0.36 (2024) |
| Debt-to-Assets | 44.8% (2025) | 21.8% (2024) |
| Interest Coverage | -4.10 (2025) | -10.73 (2024) |
| Asset Turnover | 0.29 (2025) | 0.32 (2024) |
| Fixed Asset Turnover | 0.46 (2025) | 0.57 (2024) |
| Payout ratio | -401.5% (2025) | -26.4% (2024) |
| Dividend yield | 2.61% (2025) | 3.08% (2024) |
| Fiscal Year | 2025 | 2024 |
Efficiency & Valuation Duel: The Vital Signs
Ratios serve as a company’s DNA, revealing hidden risks and operational excellence through key financial metrics.
Air Products and Chemicals, Inc.
Air Products shows weak profitability with a negative ROE of -2.63% and net margin of -3.28%. Its valuation appears stretched, but the P/E ratio is favorable at -154.02. The company maintains a 2.61% dividend yield, signaling shareholder returns despite operational challenges. Liquidity ratios are neutral to favorable, yet leverage and asset turnover remain concerns.
Albemarle Corporation
Albemarle’s profitability is deeply negative, with ROE at -11.84% and net margin at -21.93%, indicating operational weakness. Valuation metrics such as P/E (-8.58) and P/B (1.02) appear attractively priced. The firm offers a 3.08% dividend yield, balancing shareholder returns with a solid current ratio of 1.95 and low leverage, though interest coverage is unfavorable.
Valuation Stretch vs. Operational Weakness: Who Balances Risk Better?
Air Products trades at a premium with stretched operational efficiency but pays steady dividends. Albemarle offers a cheaper valuation and stronger liquidity, though suffers from deeper profitability issues. Risk-tolerant investors may prefer Albemarle’s value profile; conservative investors might favor Air Products’ dividend stability.
Which one offers the Superior Shareholder Reward?
I compare Air Products and Chemicals, Inc. (APD) and Albemarle Corporation (ALB) on dividends, payout ratios, and buybacks. APD yields ~2.4–2.6% with payout ratios around 40–65%, indicating solid dividend coverage but recent negative free cash flow per share. ALB offers a higher yield near 3%, but payout ratios are inconsistent and sometimes negative, raising sustainability concerns. APD maintains stronger buyback activity historically, supporting total returns, while ALB’s cash flow struggles limit buybacks. Given APD’s more consistent dividend policy and buyback capacity despite short-term cash flow pressure, I see APD as offering the superior shareholder reward in 2026.
Comparative Score Analysis: The Strategic Profile
The radar chart reveals the fundamental DNA and trade-offs of Air Products and Chemicals, Inc. and Albemarle Corporation, highlighting their financial strengths and weaknesses:
Both companies score low on Discounted Cash Flow, ROE, ROA, and Price-to-Earnings, indicating valuation and profitability challenges. Albemarle edges Air Products with a better Debt-to-Equity score (2 vs. 1) and a notably stronger Price-to-Book score (4 vs. 2). Albemarle presents a more balanced financial profile, while Air Products relies heavily on a moderate Price-to-Book valuation as its relative strength.
Bankruptcy Risk: Solvency Showdown
The Altman Z-Scores position both firms in the grey zone, signaling moderate bankruptcy risk in this late-cycle environment:
Albemarle’s score of 2.89 slightly surpasses Air Products’ 2.49, implying marginally better solvency and resilience against financial distress risks over the long term.
Financial Health: Quality of Operations
Piotroski F-Scores indicate both companies exhibit average financial health with no immediate red flags in internal operations:
Both firms score 4 out of 9, reflecting moderate operational quality. Neither company demonstrates peak financial robustness, signaling room for improvement in profitability and efficiency metrics.
How are the two companies positioned?
This section dissects the operational DNA of APD and ALB by comparing their revenue distribution and internal dynamics. The goal is to confront their economic moats and identify which model offers the most resilient competitive advantage today.
Revenue Segmentation: The Strategic Mix
The following visual comparison dissects how Air Products and Chemicals, Inc. and Albemarle Corporation diversify their income streams and where their primary sector bets lie:
Air Products anchors its revenue in two robust segments: On-site at $6.18B and Merchant at $5.34B, with Sale of Equipment trailing at $520M. This mix reveals a strong infrastructure and recurring revenue model. Albemarle pivots around Energy Storage at $3.02B, followed by Specialties at $1.33B and Ketjen at $1.04B, showing a more diversified portfolio but with a clear lithium and battery materials focus. Air Products’ concentration signals infrastructure dominance; Albemarle’s spread reduces single-sector risk.
Strengths and Weaknesses Comparison
This table compares the Strengths and Weaknesses of Air Products and Chemicals, Inc. (APD) and Albemarle Corporation (ALB):
APD Strengths
- Diversified revenue across Merchant, On-site, Equipment segments
- Global presence in Americas, Asia, Europe
- Favorable quick ratio and dividend yield
- WACC lower than ROIC
- Established market share in industrial gases
ALB Strengths
- Diverse product segments: Energy Storage, Ketjen, Specialties
- Strong financial ratios: current ratio, debt to equity, PB ratio
- Favorable dividend yield
- Significant foreign revenue exposure
- Slightly favorable overall financial ratios
APD Weaknesses
- Negative profitability metrics: net margin, ROE, ROIC
- High debt to equity and unfavorable interest coverage
- Low asset turnover and fixed asset turnover
- Unfavorable PB ratio
- Global ratios overall unfavorable
ALB Weaknesses
- Negative profitability metrics: net margin, ROE, ROIC
- Unfavorable interest coverage and asset turnover
- Higher WACC compared to APD
- Global ratios slightly favorable but net margin very weak
Both companies show challenges in profitability and operational efficiency despite solid diversification and global reach. APD’s capital structure and asset utilization appear weaker, while ALB benefits from stronger liquidity and lower leverage. These factors critically shape their strategic financial management.
The Moat Duel: Analyzing Competitive Defensibility
A structural moat is the only reliable shield protecting long-term profits from relentless competitive erosion. Let’s examine the moats of these two specialty chemical giants:
Air Products and Chemicals, Inc. (APD): Intangible Assets and Strategic Partnerships
APD’s moat stems from proprietary technology and strategic collaborations, notably in hydrogen systems. Despite recent financial headwinds, its market position supports stable margins. The 2026 focus on clean energy solutions could deepen its intangible asset moat.
Albemarle Corporation (ALB): Resource Control and Market Niche
ALB leverages control over lithium and specialty chemicals, a distinct moat from APD’s tech focus. However, its profitability sharply declined, reflecting operational and market pressures. Expansion into battery materials offers upside but depends on navigating volatile demand.
Verdict: Intangible Innovation vs. Resource Specialization
Both firms currently destroy value with declining ROIC below WACC. Yet APD’s intangible assets and hydrogen focus provide a broader moat than ALB’s niche resource control. APD is better positioned to defend and potentially rebuild market share amid energy transitions.
Which stock offers better returns?
The past year shows clear bullish momentum for both stocks, with Albemarle accelerating sharply and Air Products maintaining steady gains amid shifting buyer dominance.
Trend Comparison
Air Products and Chemicals, Inc. (APD) posted a 12.79% price increase over 12 months, signaling a bullish trend with accelerating gains. The stock fluctuated between 231.53 and 335.26, showing moderate volatility (std dev 25.54).
Albemarle Corporation (ALB) surged 44.2% in the same period, reflecting a strong bullish trend with acceleration. Price ranged from 52.91 to 189.51, accompanied by higher volatility (std dev 27.2).
Comparing trends, ALB outperformed APD significantly, delivering the highest market performance with a 44.2% gain versus APD’s 12.79% over the past year.
Target Prices
Analysts present a clear consensus on target prices for both Air Products and Chemicals, Inc. and Albemarle Corporation.
| Company | Target Low | Target High | Consensus |
|---|---|---|---|
| Air Products and Chemicals, Inc. | 250 | 335 | 280 |
| Albemarle Corporation | 136 | 210 | 184 |
The consensus target for Air Products at $280 slightly exceeds its current price of $272.5, indicating moderate upside. Albemarle’s $184 consensus target suggests potential recovery above its $170.63 market price.
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How do institutions grade them?
This section compares recent institutional grades for Air Products and Chemicals, Inc. and Albemarle Corporation:
Air Products and Chemicals, Inc. Grades
The table below shows Air Products and Chemicals’ latest grades from major financial institutions.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Citigroup | Maintain | Neutral | 2026-01-21 |
| B of A Securities | Upgrade | Neutral | 2026-01-08 |
| Wells Fargo | Downgrade | Equal Weight | 2025-12-19 |
| Mizuho | Maintain | Outperform | 2025-12-18 |
| Citigroup | Downgrade | Neutral | 2025-12-15 |
| UBS | Downgrade | Neutral | 2025-12-12 |
| Argus Research | Maintain | Buy | 2025-12-11 |
| Evercore ISI Group | Maintain | Outperform | 2025-11-11 |
| Wells Fargo | Maintain | Overweight | 2025-11-07 |
| UBS | Maintain | Buy | 2025-11-07 |
Albemarle Corporation Grades
Below is a summary of Albemarle Corporation’s recent institutional grades.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| JP Morgan | Maintain | Neutral | 2026-01-28 |
| Jefferies | Maintain | Buy | 2026-01-28 |
| Wells Fargo | Maintain | Equal Weight | 2026-01-26 |
| Truist Securities | Upgrade | Buy | 2026-01-21 |
| Citigroup | Maintain | Neutral | 2026-01-21 |
| Oppenheimer | Maintain | Outperform | 2026-01-21 |
| Deutsche Bank | Upgrade | Buy | 2026-01-13 |
| UBS | Maintain | Buy | 2026-01-12 |
| Mizuho | Maintain | Neutral | 2026-01-12 |
| Scotiabank | Upgrade | Sector Outperform | 2026-01-12 |
Which company has the best grades?
Albemarle holds a stronger consensus with multiple Buy and Outperform ratings, including recent upgrades. Air Products shows a mixed profile, trending toward Neutral. Investors may view Albemarle’s grades as a signal of greater institutional confidence.
Risks specific to each company
The following categories identify the critical pressure points and systemic threats facing both firms in the 2026 market environment:
1. Market & Competition
Air Products and Chemicals, Inc.
- Faces intense competition in specialty gases with stable but slow growth markets.
Albemarle Corporation
- Operates in lithium and specialty chemicals with higher volatility and demand tied to EV and battery markets.
2. Capital Structure & Debt
Air Products and Chemicals, Inc.
- High debt-to-equity ratio (1.23) signals leveraged balance sheet and weak interest coverage (-1.06).
Albemarle Corporation
- Lower debt-to-equity (0.36) and better debt-to-assets (21.77%) but still poor interest coverage (-3.61).
3. Stock Volatility
Air Products and Chemicals, Inc.
- Beta of 0.879 suggests below-market volatility, offering relative stability.
Albemarle Corporation
- Beta of 1.412 indicates above-market volatility, exposing investors to higher price swings.
4. Regulatory & Legal
Air Products and Chemicals, Inc.
- Must comply with environmental regulations impacting gas production and hydrogen initiatives.
Albemarle Corporation
- Faces regulatory risks in lithium extraction and chemical manufacturing amid tightening environmental policies.
5. Supply Chain & Operations
Air Products and Chemicals, Inc.
- Complex global supply chain for gases and equipment with moderate operational risks.
Albemarle Corporation
- Supply chain exposed to raw material scarcity and geopolitical risks affecting lithium sourcing.
6. ESG & Climate Transition
Air Products and Chemicals, Inc.
- Strategic investments in hydrogen align with climate goals but require capital and technology focus.
Albemarle Corporation
- Transition risk high due to lithium’s environmental footprint and evolving sustainability standards.
7. Geopolitical Exposure
Air Products and Chemicals, Inc.
- Primarily US-based with diversified global operations, moderate geopolitical risk.
Albemarle Corporation
- Higher exposure to volatile regions for lithium mining and international trade tensions.
Which company shows a better risk-adjusted profile?
Albemarle’s single most impactful risk lies in its volatile lithium market and geopolitical exposure. Air Products’ critical risk is its stretched capital structure and poor interest coverage. Despite both facing profitability challenges, Albemarle’s lower leverage, higher liquidity, and stronger ESG alignment give it a better risk-adjusted profile in 2026. The recent spike in Albemarle’s trading volume coupled with Air Products’ negative return metrics underscores these concerns.
Final Verdict: Which stock to choose?
Air Products and Chemicals, Inc. (APD) showcases a strong operational backbone that once delivered solid efficiency and revenue growth. Its point of vigilance lies in declining profitability and negative returns on invested capital, signaling caution. APD suits portfolios targeting steady industrial exposure with a tolerance for cyclical headwinds.
Albemarle Corporation (ALB) stands out with a strategic moat rooted in its lithium market presence and recurring revenue potential. Compared to APD, ALB offers a comparatively safer balance sheet and a more favorable current ratio, despite ongoing profitability challenges. It fits well in growth-at-a-reasonable-price (GARP) portfolios willing to embrace sector volatility.
If you prioritize industrial resilience and established operational scale, APD is the compelling choice due to its historic efficiency and revenue track record. However, if you seek exposure to growth themes in energy metals with better financial stability, ALB offers superior market momentum and a stronger balance sheet. Both carry significant risks, demanding careful risk management aligned with individual strategy.
Disclaimer: Investment carries a risk of loss of initial capital. The past performance is not a reliable indicator of future results. Be sure to understand risks before making an investment decision.
Go Further
I encourage you to read the complete analyses of Air Products and Chemicals, Inc. and Albemarle Corporation to enhance your investment decisions:
