LyondellBasell Industries (NYSE:LYB – Get Free Report) and Solstice Advanced Mat (NASDAQ:SOLS – Get Free Report) are both materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, earnings, profitability, risk, analyst recommendations, valuation and dividends.
Profitability
This table compares LyondellBasell Industries and Solstice Advanced Mat’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| LyondellBasell Industries | -1.13% | 17.44% | 5.30% |
| Solstice Advanced Mat | 5.13% | 14.28% | 4.82% |
Dividends
LyondellBasell Industries pays an annual dividend of $2.76 per share and has a dividend yield of 4.3%. Solstice Advanced Mat pays an annual dividend of $0.30 per share and has a dividend yield of 0.5%. LyondellBasell Industries pays out -244.2% of its earnings in the form of a dividend. Solstice Advanced Mat pays out 16.9% 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.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| LyondellBasell Industries | 3 | 8 | 9 | 1 | 2.38 |
| Solstice Advanced Mat | 0 | 3 | 7 | 1 | 2.82 |
LyondellBasell Industries currently has a consensus price target of $72.56, indicating a potential upside of 13.18%. Solstice Advanced Mat has a consensus price target of $78.25, indicating a potential upside of 28.05%. Given Solstice Advanced Mat’s stronger consensus rating and higher possible upside, analysts plainly believe Solstice Advanced Mat is more favorable than LyondellBasell Industries.
Valuation and Earnings
This table compares LyondellBasell Industries and Solstice Advanced Mat”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| LyondellBasell Industries | $30.15 billion | 0.69 | -$738.00 million | ($1.13) | -56.73 |
| Solstice Advanced Mat | $4.10 billion | 2.37 | $237.00 million | $1.77 | 34.53 |
Solstice Advanced Mat has lower revenue, but higher earnings than LyondellBasell Industries. LyondellBasell Industries is trading at a lower price-to-earnings ratio than Solstice Advanced Mat, indicating that it is currently the more affordable of the two stocks.
Insider & Institutional Ownership
71.2% of LyondellBasell Industries shares are owned by institutional investors. 0.1% of LyondellBasell Industries shares are owned by company insiders. Comparatively, 0.1% of Solstice Advanced Mat shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Summary
LyondellBasell Industries beats Solstice Advanced Mat on 9 of the 16 factors compared between the two stocks.
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.
About Solstice Advanced Mat
Solstice Advanced Materials is a leading global specialty materials company that advances science for smarter outcomes. Solstice offers high-performance solutions that enable critical industries and applications, including refrigerants, semiconductor manufacturing, data center cooling, nuclear power, protective fibers, healthcare packaging and more.
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