Comparing Axiall (AXLL) & LyondellBasell Industries (LYB)

Axiall (NYSE: AXLL) and LyondellBasell Industries (NYSE:LYB) are both basic materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, profitability, dividends, earnings and analyst recommendations.

Institutional & Insider Ownership

73.9% of LyondellBasell Industries shares are owned by institutional investors. 0.1% of LyondellBasell Industries shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Axiall and LyondellBasell Industries’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Axiall N/A N/A N/A ($12.69) -2.60
LyondellBasell Industries $29.18 billion 1.52 $3.84 billion $9.38 12.03

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

Dividends

Axiall pays an annual dividend of $0.64 per share and has a dividend yield of 1.9%. LyondellBasell Industries pays an annual dividend of $3.60 per share and has a dividend yield of 3.2%. Axiall pays out -5.0% of its earnings in the form of a dividend. LyondellBasell Industries pays out 38.4% 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 has raised its dividend for 5 consecutive years. LyondellBasell Industries is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Axiall and LyondellBasell Industries, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Axiall 0 0 0 0 N/A
LyondellBasell Industries 1 8 6 0 2.33

LyondellBasell Industries has a consensus price target of $101.00, suggesting a potential downside of 10.46%. Given LyondellBasell Industries’ higher probable upside, analysts clearly believe LyondellBasell Industries is more favorable than Axiall.

Profitability

This table compares Axiall and LyondellBasell Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Axiall -3.52% -7.36% -2.47%
LyondellBasell Industries 11.32% 58.13% 16.10%

Summary

LyondellBasell Industries beats Axiall on 12 of the 13 factors compared between the two stocks.

Axiall Company Profile

Axiall Corporation (Axiall) is a manufacturer and international marketer of chemicals and building products. The Company operates through two segments: chlorovinyls and building products. Its products include chlorine, caustic soda, vinyl chloride monomer, siding and exterior accessories, and pipe and pipe fittings, among others. The Company’s chlorovinyls segment produces a chain of products, including chlor-alkali and derivative products, such as vinyl resins, ethylene dichloride (or 1, 2 dichloroethane) (EDC), chlorinated solvents, calcium hypochlorite, hydrochloric acid (HCL) and phosgene derivatives, and compound products, such as vinyl compounds and compound additives and plasticizers. The Company’s building products segment consists of over two primary product groups: window and door profiles and trim, moldings and deck products, and outdoor building products, which includes siding and exterior accessories, pipe and pipe fittings.

LyondellBasell Industries 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.

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