LyondellBasell Industries NV (NYSE: LYB) and Air Products and Chemicals (NYSE:APD) are both large-cap basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, valuation, profitabiliy, institutional ownership, analyst recommendations, risk and dividends.

Valuation and Earnings

This table compares LyondellBasell Industries NV and Air Products and Chemicals’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
LyondellBasell Industries NV $30.87 billion 1.12 $5.95 billion $8.71 9.86
Air Products and Chemicals $9.74 billion 3.25 $3.14 billion $14.46 10.07

LyondellBasell Industries NV has higher revenue and earnings than Air Products and Chemicals. LyondellBasell Industries NV is trading at a lower price-to-earnings ratio than Air Products and Chemicals, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares LyondellBasell Industries NV and Air Products and Chemicals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LyondellBasell Industries NV 11.67% 60.80% 16.14%
Air Products and Chemicals 36.19% 19.26% 8.68%

Dividends

LyondellBasell Industries NV pays an annual dividend of $3.60 per share and has a dividend yield of 4.2%. Air Products and Chemicals pays an annual dividend of $3.80 per share and has a dividend yield of 2.6%. LyondellBasell Industries NV pays out 41.3% of its earnings in the form of a dividend. Air Products and Chemicals pays out 26.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. LyondellBasell Industries NV has raised its dividend for 5 consecutive years and Air Products and Chemicals has raised its dividend for 34 consecutive years.

Insider and Institutional Ownership

72.8% of LyondellBasell Industries NV shares are owned by institutional investors. Comparatively, 89.2% of Air Products and Chemicals shares are owned by institutional investors. 0.1% of LyondellBasell Industries NV shares are owned by company insiders. Comparatively, 0.4% of Air Products and Chemicals 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 Ratings

This is a breakdown of recent recommendations and price targets for LyondellBasell Industries NV and Air Products and Chemicals, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LyondellBasell Industries NV 1 8 8 0 2.41
Air Products and Chemicals 1 4 7 0 2.50

LyondellBasell Industries NV presently has a consensus target price of $93.31, indicating a potential upside of 8.67%. Air Products and Chemicals has a consensus target price of $152.92, indicating a potential upside of 5.05%. Given LyondellBasell Industries NV’s higher probable upside, equities research analysts plainly believe LyondellBasell Industries NV is more favorable than Air Products and Chemicals.

Volatility and Risk

LyondellBasell Industries NV has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500. Comparatively, Air Products and Chemicals has a beta of 1.26, indicating that its stock price is 26% more volatile than the S&P 500.

Summary

Air Products and Chemicals beats LyondellBasell Industries NV on 10 of the 17 factors compared between the two stocks.

LyondellBasell Industries NV Company Profile

LyondellBasell Industries N.V. is a chemical company. The Company operates in five segments: Olefins and Polyolefins-Americas (O&P-Americas), Olefins and Polyolefins-Europe, Asia, International (O&P-EAI), Intermediates and Derivatives (I&D), Refining and Technology. The O&P-Americas segment produces and markets olefins and co-products, polyethylene and polypropylene. The O&P-EAI segment produces and markets olefins and co-products, polyethylene and polypropylene. The I&D segment produces and markets propylene oxide (PO) and its derivatives, oxyfuels and related products, and intermediate chemicals, such as styrene monomer (SM), acetyls and ethylene oxides. The primary product of the Refining segment is refined products made from sulfur crude oil and other crude oils of various types and sources available on the United States Gulf Coast. The Technology segment develops and licenses chemical and polyolefin process technologies and manufactures and sells polyolefin catalysts.

Air Products and Chemicals Company Profile

Air Products and Chemicals, Inc., is an industrial gases company. The Company’s Industrial Gases business provides atmospheric and process gases and related equipment to manufacturing markets, including refining and petrochemical, metals, electronics, and food and beverage. The Company is also a supplier of liquefied natural gas process technology and equipment. The Company operates through five segments: Industrial Gases-Americas, Industrial Gases-Europe, Middle East, and Africa (EMEA), Industrial Gases-Asia, Industrial Gases-Global, and Corporate and other.

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