Northern Technologies International (NASDAQ:NTIC) versus LyondellBasell Industries (NYSE:LYB) Financial Review

Northern Technologies International (NASDAQ:NTIC) and LyondellBasell Industries (NYSE:LYB) are both basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.

Analyst Recommendations

This is a breakdown of recent recommendations for Northern Technologies International and LyondellBasell Industries, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Northern Technologies International	1	1	0	0	1.50
LyondellBasell Industries	3	8	8	2	2.43

LyondellBasell Industries has a consensus target price of $76.71, indicating a potential upside of 19.18%. Given LyondellBasell Industries’ stronger consensus rating and higher possible upside, analysts plainly believe LyondellBasell Industries is more favorable than Northern Technologies International.

Dividends

Northern Technologies International pays an annual dividend of $0.04 per share and has a dividend yield of 0.5%. LyondellBasell Industries pays an annual dividend of $2.76 per share and has a dividend yield of 4.3%. Northern Technologies International pays out -50.0% of its earnings in the form of a dividend. LyondellBasell Industries pays out -110.8% 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 14 consecutive years. LyondellBasell Industries is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares Northern Technologies International and LyondellBasell Industries”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Northern Technologies International	$84.24 million	0.91	$20,000.00	($0.08)	-100.63
LyondellBasell Industries	$30.15 billion	0.69	-$738.00 million	($2.49)	-25.85

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

Risk & Volatility

Northern Technologies International has a beta of 0.19, meaning that its share price is 81% less volatile than the S&P 500. Comparatively, LyondellBasell Industries has a beta of 0.28, meaning that its share price is 72% less volatile than the S&P 500.

Profitability

This table compares Northern Technologies International and LyondellBasell Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Northern Technologies International	-0.87%	0.05%	0.04%
LyondellBasell Industries	-2.68%	5.68%	1.77%

Institutional & Insider Ownership

32.9% of Northern Technologies International shares are held by institutional investors. Comparatively, 71.2% of LyondellBasell Industries shares are held by institutional investors. 24.9% of Northern Technologies International shares are held by insiders. Comparatively, 0.1% of LyondellBasell Industries shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

LyondellBasell Industries beats Northern Technologies International on 13 of the 18 factors compared between the two stocks.

About Northern Technologies International

Northern Technologies International Corporation develops and markets rust and corrosion inhibiting solutions in North America, South America, Europe, Asia, the Middle East and internationally. It offers rust and corrosion inhibiting products, such as plastic and paper packaging, liquids, coatings, rust removers, cleaners, diffusers, and engineered solutions designed for the oil and gas industry under the ZERUST brand. The company provides a portfolio of bio-based and certified compostable polymer resin compounds and finished products under the Natur-Tec brand. In addition, it offers on-site and technical consulting for rust and corrosion prevention issues. It sells its products and services to automotive, electronics, electrical, mechanical, military, retail consumer, and oil and gas markets through direct sales force, network of independent distributors, agents, manufacturer's sales representatives, and strategic partners. The company was founded in 1970 and is headquartered in Circle Pines, Minnesota.

About LyondellBasell Industries

LyondellBasell Industries N.V. operates as a chemical company in the United States, Germany, Mexico, Italy, Poland, France, Japan, China, the Netherlands, and internationally. The company operates in six segments: Olefins and PolyolefinsAmericas; Olefins and PolyolefinsEurope, Asia, International; Intermediates and Derivatives; Advanced Polymer Solutions; Refining; and Technology. It produces and markets olefins and co-products, polyethylene, and polypropylene; and propylene oxide and derivatives; oxyfuels and related products; and intermediate chemicals, such as styrene monomer, acetyls, ethylene oxide, and ethylene glycol. In addition, the company produce and markets compounding and solutions including polypropylene compounds, engineered plastics, masterbatches, engineered composites, colors and powders, and advanced polymers including catalloy and polybutene-1; and refines heavy, high-sulfur crude oil and other crude oils, as well as refined products, including gasoline and distillates. Further, it develops and licenses chemical and polyolefin process technologies; manufactures and sells polyolefin catalysts; and serves food packaging, home furnishings, automotive components, and paints and coatings applications. LyondellBasell Industries N.V. was incorporated in 2009 and is headquartered in Houston, Texas.