LyondellBasell Industries (NYSE:LYB) and Olin (NYSE:OLN) Financial Comparison

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
LyondellBasell Industries	-2.68%	5.68%	1.77%
Olin	-1.89%	-4.68%	-1.18%

Volatility and Risk

LyondellBasell Industries has a beta of 0.32, suggesting that its stock price is 68% less volatile than the S&P 500. Comparatively, Olin has a beta of 1.21, suggesting that its stock price is 21% more volatile than the S&P 500.

Institutional & Insider Ownership

71.2% of LyondellBasell Industries shares are held by institutional investors. Comparatively, 88.7% of Olin shares are held by institutional investors. 0.1% of LyondellBasell Industries shares are held by company insiders. Comparatively, 1.6% of Olin shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations for LyondellBasell Industries and Olin, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LyondellBasell Industries	4	9	7	2	2.32
Olin	2	11	3	1	2.18

LyondellBasell Industries presently has a consensus target price of $76.76, suggesting a potential upside of 5.07%. Olin has a consensus target price of $27.79, suggesting a potential upside of 7.14%. Given Olin’s higher probable upside, analysts plainly believe Olin is more favorable than LyondellBasell Industries.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LyondellBasell Industries	$30.15 billion	0.78	-$738.00 million	($2.49)	-29.34
Olin	$6.78 billion	0.44	-$100.50 million	($1.12)	-23.16

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

Dividends

LyondellBasell Industries pays an annual dividend of $2.76 per share and has a dividend yield of 3.8%. Olin pays an annual dividend of $0.80 per share and has a dividend yield of 3.1%. LyondellBasell Industries pays out -110.8% of its earnings in the form of a dividend. Olin pays out -71.4% 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 increased 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.

Summary

LyondellBasell Industries beats Olin on 10 of the 18 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 Olin

Olin Corporation manufactures and distributes chemical products in the United States, Europe, Asia Pacific, Latin America, and Canada. It operates through three segments: Chlor Alkali Products and Vinyls; Epoxy; and Winchester. The Chlor Alkali Products and Vinyls segment offers chlorine and caustic soda, ethylene dichloride and vinyl chloride monomers, methyl chloride, methylene chloride, chloroform, carbon tetrachloride, perchloroethylene, hydrochloric acid, hydrogen, bleach products, potassium hydroxide, and chlorinated organics intermediates and solvents. The Epoxy segment provides Allylics, such as allyl chloride, epichlorohydrin, and glycerin; aromatics, including acetone, bisphenol, cumene, and phenol; liquid and solid epoxy resins; and converted epoxy resins and additives. The Winchester segment offers sporting ammunition products, including shotshells, small caliber centerfire, and rimfire ammunition products for hunters and recreational shooters, and law enforcement agencies; small caliber military ammunition products for use in infantry and mounted weapons; and industrial products comprising gauge loads and powder-actuated tool loads for maintenance applications in power and concrete industries, and powder-actuated tools in construction industry. The company markets its products through its sales force, as well as directly to various industrial customers, mass merchants, retailers, wholesalers, gun clubs, other distributors, and the U.S. Government and its prime contractors. Olin Corporation was incorporated in 1892 and is based in Clayton, Missouri.