Alta vs Quaker Chemical Which Offers More Value?

Alta and Quaker Chemical are two companies in the chemical manufacturing industry that have been garnering attention from investors in recent years. Alta has been experiencing steady growth and has a strong presence in the market, while Quaker Chemical has a long-standing history and a loyal customer base. Both companies have shown promising financial performance, but there are key differences in their business models and strategies that investors should take into account when considering investing in either stock.

Alta or Quaker Chemical?

When comparing Alta and Quaker Chemical, 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 Alta and Quaker Chemical.

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. Alta has a dividend yield of -%, while Quaker Chemical has a dividend yield of 1.36%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Alta reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. On the other hand, Quaker Chemical reports a 5-year dividend growth of 3.95% year and a payout ratio of 26.67%.

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 Alta P/E ratio at 2.38 and Quaker Chemical's P/E ratio at 25.02. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Alta P/B ratio is 0.17 while Quaker Chemical's P/B ratio is 2.12.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Alta has seen a 5-year revenue growth of 10.40%, while Quaker Chemical's is 0.67%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Alta's ROE at 7.34% and Quaker Chemical's ROE at 8.74%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are zł2.26 for Alta and $169.06 for Quaker Chemical. Over the past year, Alta's prices ranged from zł1.43 to zł3.59, with a yearly change of 151.05%. Quaker Chemical's prices fluctuated between $151.31 and $221.94, with a yearly change of 46.68%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.