LyondellBasell Industries (NYSE:LYB – Get Free Report) and Sociedad Quimica y Minera (NYSE:SQM – Get Free Report) are both large-cap materials companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, valuation, risk and earnings.
Dividends
LyondellBasell Industries pays an annual dividend of $2.76 per share and has a dividend yield of 4.7%. Sociedad Quimica y Minera pays an annual dividend of $1.69 per share and has a dividend yield of 2.5%. LyondellBasell Industries pays out -244.2% of its earnings in the form of a dividend. Sociedad Quimica y Minera pays out 34.8% 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.
Analyst Ratings
This is a breakdown of current ratings and target prices for LyondellBasell Industries and Sociedad Quimica y Minera, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| LyondellBasell Industries | 4 | 8 | 7 | 1 | 2.25 |
| Sociedad Quimica y Minera | 1 | 7 | 5 | 1 | 2.43 |
Valuation and Earnings
This table compares LyondellBasell Industries and Sociedad Quimica y Minera”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 | 0.63 | -$738.00 million | ($1.13) | -52.06 |
| Sociedad Quimica y Minera | $4.58 billion | 4.21 | $588.14 million | $4.85 | 13.91 |
Sociedad Quimica y Minera has lower revenue, but higher earnings than LyondellBasell Industries. LyondellBasell Industries is trading at a lower price-to-earnings ratio than Sociedad Quimica y Minera, 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. Comparatively, 12.4% of Sociedad Quimica y Minera shares are owned by institutional investors. 0.1% of LyondellBasell Industries shares are owned 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.
Volatility & Risk
LyondellBasell Industries has a beta of 0.31, meaning that its share price is 69% less volatile than the S&P 500. Comparatively, Sociedad Quimica y Minera has a beta of 0.99, meaning that its share price is 1% less volatile than the S&P 500.
Profitability
This table compares LyondellBasell Industries and Sociedad Quimica y Minera’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% |
| Sociedad Quimica y Minera | 20.62% | 18.20% | 9.46% |
Summary
Sociedad Quimica y Minera beats LyondellBasell Industries on 9 of the 17 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 Sociedad Quimica y Minera
Sociedad Química y Minera de Chile S.A. operates as a mining company worldwide. The company offers specialty plant nutrients, including sodium potassium nitrate, specialty blends, and other specialty fertilizers under Ultrasol, Qrop, Speedfol, Allganic, Ultrasoline, ProP, and Prohydric brands. It also provides iodine and its derivatives for use in medical, agricultural, industrial, and human and animal nutrition products comprising x-ray contrast media, biocides, antiseptics and disinfectants, pharmaceutical intermediates, polarizing films for LCD and LED screens, chemicals, organic compounds, and pigments, as well as added to edible salt to prevent iodine deficiency disorders. In addition, the company produces lithium carbonate and lithium hydroxide which are used in the production of cathode material for secondary batteries; lithium chloride; and basic lithium chemicals and lithium derivatives used in lubricating greases for heat-resistant glass, chips for the ceramic and glazing industry, and air conditioning chemicals, as well as other pharmaceutical syntheses and metal alloys. Further, it produces potassium sulfate; and potassium chloride which is used as a fertilizer for the application of potassium to different crops. Additionally, the company produces and markets industrial chemicals, such as sodium nitrate mainly used in the production of glass and explosives, metal processing and recycling, and production of insulating materials and adhesives; potassium nitrate used as a raw material to produce frits and special glass, as well as in the enamel, metal treatment, and pyrotechnic sectors; solar salts used as a thermal storage medium in solar power generation plants; and potassium chloride as an additive in oil drilling and food processing sectors. Furthermore, it is involved in the commercialization of third-party fertilizers; and exploration of copper, gold, and silver deposits. The company was founded in 1926 and is headquartered in Santiago, Chile.
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