Calgon Carbon (NYSE: CCC) and LyondellBasell Industries (NYSE:LYB) are both industrial products companies, but which is the better business? We will compare the two companies based on the strength of their earnings, analyst recommendations, profitability, risk, valuation, institutional ownership and dividends.

Analyst Recommendations

This is a summary of current recommendations and price targets for Calgon Carbon and LyondellBasell Industries, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Calgon Carbon 1 3 0 0 1.75
LyondellBasell Industries 1 8 6 0 2.33

Calgon Carbon currently has a consensus price target of $19.63, indicating a potential downside of 7.86%. LyondellBasell Industries has a consensus price target of $101.00, indicating a potential downside of 11.01%. Given Calgon Carbon’s higher probable upside, research analysts clearly believe Calgon Carbon is more favorable than LyondellBasell Industries.

Volatility and Risk

Calgon Carbon has a beta of 1.2, suggesting that its stock price is 20% more volatile than the S&P 500. Comparatively, LyondellBasell Industries has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500.

Dividends

Calgon Carbon pays an annual dividend of $0.20 per share and has a dividend yield of 0.9%. LyondellBasell Industries pays an annual dividend of $3.60 per share and has a dividend yield of 3.2%. Calgon Carbon pays out 166.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. LyondellBasell Industries pays out 38.4% of its earnings in the form of a dividend. LyondellBasell Industries has increased its dividend for 5 consecutive years. LyondellBasell Industries is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

95.5% of Calgon Carbon shares are held by institutional investors. Comparatively, 73.9% of LyondellBasell Industries shares are held by institutional investors. 2.3% of Calgon Carbon shares are held by company insiders. Comparatively, 0.1% of LyondellBasell Industries shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Calgon Carbon and LyondellBasell Industries’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Calgon Carbon $514.25 million 2.10 $13.79 million $0.12 177.51
LyondellBasell Industries $29.18 billion 1.53 $3.84 billion $9.38 12.10

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

Profitability

This table compares Calgon Carbon and LyondellBasell Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Calgon Carbon 0.97% 5.65% 2.75%
LyondellBasell Industries 11.32% 58.13% 16.10%

Summary

LyondellBasell Industries beats Calgon Carbon on 11 of the 17 factors compared between the two stocks.

About Calgon Carbon

Calgon Carbon Corporation is a manufacturer of activated carbon, with capabilities in ultraviolet (UV) light disinfection. The Company provides purification solutions for drinking water, wastewater, pollution abatement, and a range of industrial and commercial manufacturing processes. The Company operates through four segments: Activated Carbon and Service, Equipment, Consumer and Other. The Company’s products and services are designed to protect human health and the environment from harmful contaminants in water, and air. The Company provides purification solutions for drinking water, wastewater, pollution abatement, and a range of industrial and commercial manufacturing processes. The Company operates in the United States, Europe, Japan, Africa, Canada, China, India, Latin America, and in other parts of Asia.

About LyondellBasell Industries

LyondellBasell Industries N.V. is a chemical company. The Company operates in five segments: Olefins and Polyolefins-Americas (O&P-Americas), Olefins and Polyolefins-Europe, Asia, International (O&P-EAI), Intermediates and Derivatives (I&D), Refining and Technology. The O&P-Americas segment produces and markets olefins and co-products, polyethylene and polypropylene. The O&P-EAI segment produces and markets olefins and co-products, polyethylene and polypropylene. The I&D segment produces and markets propylene oxide (PO) and its derivatives, oxyfuels and related products, and intermediate chemicals, such as styrene monomer (SM), acetyls and ethylene oxides. The primary product of the Refining segment is refined products made from sulfur crude oil and other crude oils of various types and sources available on the United States Gulf Coast. The Technology segment develops and licenses chemical and polyolefin process technologies and manufactures and sells polyolefin catalysts.

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