Akzo Nobel vs PPG Industries Which Is More Profitable?

Akzo Nobel and PPG Industries are two leading companies in the global coatings and specialty materials industry. Both companies have a strong track record of innovation, high-quality products, and industry expertise. However, they have had differing performances in the stock market in recent years. Akzo Nobel's stock has shown steady growth, thanks to its strategic partnerships and focus on sustainability. On the other hand, PPG Industries has faced some challenges, including economic uncertainties and geopolitical factors, leading to more volatile stock performance. It will be interesting to see how these companies continue to compete and evolve in the market.

Akzo Nobel or PPG Industries?

When comparing Akzo Nobel and PPG Industries, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Akzo Nobel and PPG Industries.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Akzo Nobel has a dividend yield of 2.89%, while PPG Industries has a dividend yield of 1.57%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Akzo Nobel reports a 5-year dividend growth of -7.47% year and a payout ratio of 59.18%. On the other hand, PPG Industries reports a 5-year dividend growth of 6.43% year and a payout ratio of 41.52%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Akzo Nobel P/E ratio at 17.20 and PPG Industries's P/E ratio at 19.78. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Akzo Nobel P/B ratio is 2.26 while PPG Industries's P/B ratio is 3.77.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Akzo Nobel has seen a 5-year revenue growth of 0.53%, while PPG Industries's is 0.23%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Akzo Nobel's ROE at 13.24% and PPG Industries's ROE at 18.97%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $21.04 for Akzo Nobel and $125.53 for PPG Industries. Over the past year, Akzo Nobel's prices ranged from $19.40 to $27.99, with a yearly change of 44.28%. PPG Industries's prices fluctuated between $118.07 and $151.16, with a yearly change of 28.03%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.