Head to Head Comparison: Fuchs (OTCMKTS:FUPEF) & Arcadium Lithium (NYSE:ALTM)

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

Insider and Institutional Ownership

20.1% of Fuchs shares are owned by institutional investors. Comparatively, 96.8% of Arcadium Lithium shares are owned by institutional investors. 3.4% of Arcadium Lithium shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Fuchs and Arcadium Lithium, as reported by MarketBeat.

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

Valuation and Earnings

This table compares Fuchs and Arcadium Lithium’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Fuchs	N/A	N/A	N/A	$3.08	11.40
Arcadium Lithium	$1.21 billion	3.83	$1.70 billion	1.58	2.73

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

Profitability

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

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

Dividends

Fuchs pays an annual dividend of $0.52 per share and has a dividend yield of 1.5%. Arcadium Lithium pays an annual dividend of 6.00 per share and has a dividend yield of 139.2%. Fuchs pays out 16.8% of its earnings in the form of a dividend. Arcadium Lithium pays out 379.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

About Fuchs

Fuchs SE develops, produces, and sells lubricants and related specialties in Europe, the Middle East, Africa, the Asia Pacific, and North and South America. The company offers automotive lubricants, such as biodegradable lubricants, central and mobile hydraulic oils, dry coatings, engine and gear oils, motorcycle/two wheelers, and service fluids, as well as various oils for agriculture sector. It also provides industrial lubricants, including chain lubricants, dry coatings, gear and hydraulic oils, machine oils, open gear lubricants, rapidly biodegradable lubricants, compressor and refrigeration oils, release agents, slideways oils, industrial oils, textile machine oils, and turbine oils. In addition, the company offers lubricating greases comprising assembly pastes, biodegradable greases, food grade greases, multi-purpose/long-life greases, pastes for extreme temperatures, perfluorinated pastes, and wheel bearing greases, as well as gear boxes, and greases for central lubricating system, extreme temperature, machine tools, plain and roller bearings, rail vehicles, spray cans or rattle cans, and solid lubricants. Further, it provides metal processing lubricants consisting of cleaners, corrosion preventives, cutting and grinding, forming lubricants, and quenching oils; and special application lubricants for application equipment, chain lubrication, dry coatings, food and beverage, gears, sugar processing, railway traffic, plain and roller bearings, glass manufacturing process, hot forming, maintenance, open gears, pastes, release agents, other specialties, special greases, and wind power plants. Additionally, the company offers open gear and surface coating services. The company was formerly known as Fuchs Petrolub SE and changed its name to Fuchs SE in July 2023. Fuchs SE was founded in 1931 and is headquartered in Mannheim, Germany.

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.