Head-To-Head Survey: LyondellBasell Industries (LYB) vs. The Competition

LyondellBasell Industries (NYSE:LYB) is one of 296 publicly-traded companies in the “Chemicals” industry, but how does it weigh in compared to its competitors? We will compare LyondellBasell Industries to related companies based on the strength of its profitability, risk, dividends, valuation, earnings, analyst recommendations and institutional ownership.

Institutional & Insider Ownership

71.2% of LyondellBasell Industries shares are held by institutional investors. Comparatively, 47.4% of shares of all “Chemicals” companies are held by institutional investors. 0.1% of LyondellBasell Industries shares are held by insiders. Comparatively, 13.7% of shares of all “Chemicals” companies are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
LyondellBasell Industries	4.06%	21.94%	6.73%
LyondellBasell Industries Competitors	-54.07%	-0.31%	-1.28%

Earnings & Valuation

This table compares LyondellBasell Industries and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
LyondellBasell Industries	$31.96 billion	-$738.00 million	15.81
LyondellBasell Industries Competitors	$7.95 billion	$229.42 million	20.57

LyondellBasell Industries has higher revenue, but lower earnings than its competitors. LyondellBasell Industries 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.

Risk and Volatility

LyondellBasell Industries has a beta of 0.29, indicating that its share price is 71% less volatile than the S&P 500. Comparatively, LyondellBasell Industries’ competitors have a beta of 0.94, indicating that their average share price is 6% less volatile than the S&P 500.

Dividends

LyondellBasell Industries pays an annual dividend of $2.76 per share and has a dividend yield of 4.4%. LyondellBasell Industries pays out 69.7% of its earnings in the form of a dividend. As a group, “Chemicals” companies pay a dividend yield of 3.1% and pay out 103.5% of their earnings in the form of a dividend. LyondellBasell Industries has increased its dividend for 14 consecutive years. LyondellBasell Industries 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 ratings and price targets for LyondellBasell Industries and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LyondellBasell Industries	3	9	7	1	2.30
LyondellBasell Industries Competitors	3271	12237	14147	520	2.39

LyondellBasell Industries presently has a consensus target price of $73.22, suggesting a potential upside of 16.98%. As a group, “Chemicals” companies have a potential upside of 6.68%. Given LyondellBasell Industries’ higher probable upside, analysts plainly believe LyondellBasell Industries is more favorable than its competitors.

Summary

LyondellBasell Industries beats its competitors on 9 of the 15 factors compared.

About LyondellBasell Industries

LyondellBasell Industries (NYSE: LYB) is a global chemicals and plastics company that makes materials and products used by manufacturers in a range of industries. Its businesses span the production of olefins, such as ethylene and propylene, and polyolefins, including polyethylene and polypropylene. The company also produces intermediates and derivatives, develops advanced polymer compounds, and provides chemical-process technology and related services. Its products are used in applications including packaging, transportation, construction, consumer goods and healthcare.