LyondellBasell Industries NV (LYB) vs. Its Competitors Critical Review

LyondellBasell Industries NV (NYSE: LYB) is one of 35 publicly-traded companies in the “Commodity Chemicals” industry, but how does it compare to its competitors? We will compare LyondellBasell Industries NV to similar companies based on the strength of its dividends, institutional ownership, valuation, profitability, risk, analyst recommendations and earnings.

Volatility & Risk

LyondellBasell Industries NV has a beta of 1.04, suggesting that its stock price is 4% more volatile than the S&P 500. Comparatively, LyondellBasell Industries NV’s competitors have a beta of 1.17, suggesting that their average stock price is 17% more volatile than the S&P 500.

Dividends

LyondellBasell Industries NV pays an annual dividend of $3.60 per share and has a dividend yield of 3.6%. LyondellBasell Industries NV pays out 38.6% of its earnings in the form of a dividend. As a group, “Commodity Chemicals” companies pay a dividend yield of 1.8% and pay out 48.3% of their earnings in the form of a dividend. LyondellBasell Industries NV has raised its dividend for 5 consecutive years. LyondellBasell Industries NV is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a summary of recent recommendations for LyondellBasell Industries NV and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LyondellBasell Industries NV 1 8 5 0 2.29
LyondellBasell Industries NV Competitors 104 783 1173 34 2.54

LyondellBasell Industries NV presently has a consensus target price of $95.69, indicating a potential downside of 3.35%. As a group, “Commodity Chemicals” companies have a potential downside of 0.79%. Given LyondellBasell Industries NV’s competitors stronger consensus rating and higher possible upside, analysts clearly believe LyondellBasell Industries NV has less favorable growth aspects than its competitors.

Valuation and Earnings

This table compares LyondellBasell Industries NV and its competitors gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
LyondellBasell Industries NV $31.95 billion $6.14 billion 10.61
LyondellBasell Industries NV Competitors $4.16 billion $893.20 million 36.22

LyondellBasell Industries NV has higher revenue and earnings than its competitors. LyondellBasell Industries NV is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Profitability

This table compares LyondellBasell Industries NV and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
LyondellBasell Industries NV 11.32% 58.13% 16.10%
LyondellBasell Industries NV Competitors -23.29% 24.50% 5.88%

Insider & Institutional Ownership

74.1% of LyondellBasell Industries NV shares are owned by institutional investors. Comparatively, 69.2% of shares of all “Commodity Chemicals” companies are owned by institutional investors. 0.1% of LyondellBasell Industries NV shares are owned by insiders. Comparatively, 8.3% of shares of all “Commodity Chemicals” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

LyondellBasell Industries NV beats its competitors on 8 of the 15 factors compared.

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.

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