Givaudan (OTCMKTS:GVDBF) vs. Arcadium Lithium (NYSE:ALTM) Head-To-Head Analysis

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

Earnings & Valuation

This table compares Arcadium Lithium and Givaudan”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arcadium Lithium	$1.21 billion	5.08	$290.42 million	$0.27	21.13
Givaudan	N/A	N/A	N/A	$56.28	75.03

Arcadium Lithium has higher revenue and earnings than Givaudan. Arcadium Lithium is trading at a lower price-to-earnings ratio than Givaudan, 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 105.2%. Givaudan pays an annual dividend of $47.00 per share and has a dividend yield of 1.1%. Arcadium Lithium pays out 2,222.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Givaudan pays out 83.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

This table compares Arcadium Lithium and Givaudan’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
Givaudan	N/A	N/A	N/A

Analyst Recommendations

This is a summary of current ratings and target prices for Arcadium Lithium and Givaudan, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arcadium Lithium	0	10	0	0	2.00
Givaudan	0	0	0	0	0.00

Arcadium Lithium presently has a consensus target price of $11.00, indicating a potential upside of 92.81%. Given Arcadium Lithium’s stronger consensus rating and higher probable upside, research analysts clearly believe Arcadium Lithium is more favorable than Givaudan.

Insider & Institutional Ownership

27.0% of Arcadium Lithium shares are held by institutional investors. Comparatively, 28.7% of Givaudan shares are held by institutional investors. 0.4% of Arcadium Lithium shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Summary

Arcadium Lithium beats Givaudan on 5 of the 9 factors compared between the two stocks.

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 Givaudan

Givaudan SA manufactures, supplies, and sells fragrance, beauty, taste, and wellbeing products to the consumer goods industry. The company operates through divisions, Fragrance & Beauty, and Taste & Wellbeing. The Fragrance & Beauty division offers fine fragrances; consumer products, such as personal, home, fabric, and oral care; fragrance ingredients; and active beauty products. The Taste & Wellbeing division provides beverages, such as fizzy drinks, bottled waters, ready-to-drink juices, alcoholic beverages, and others; dairy and cheese products, including dairy drinks, yoghurt, ice cream, chilled desserts, cream cheese, and spreads; snacks; givaudan flavour ingredients; savory, and supplements and nutraceutical products; and biscuits, crackers, and cereals, as well as confectionery products, such as chewing gums, chocolates, and sweets. It operates in Switzerland, Europe, Africa, the Middle East, North America, Latin America, and the Asia Pacific. Givaudan SA was founded in 1796 and is headquartered in Vernier, Switzerland.