Narrow-Moat AkzoNobel Exhibits Pricing Power in Its Sizable Decorative Paints Business

AkzoNobel is the third-largest company in the paints and coatings industry, behind Sherwin-Williams and PPG Industries. The company's operations are divided into two segments: decorative paints and performance coatings. Decorative paints are applied to external and internal buildings for cosmetic appeal and are essentially consumer products where brands are important. By contrast, performance coatings are primarily functional products used in a variety of industrial end markets, including automotive, aerospace, oil and gas, marine, and packaging.