LyondellBasell Industries (NYSE:LYB – Get Free Report) and Loop Industries (NASDAQ:LOOP – Get Free Report) are both materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, risk, valuation, dividends, institutional ownership, profitability and analyst recommendations.
Institutional & Insider Ownership
71.2% of LyondellBasell Industries shares are owned by institutional investors. Comparatively, 4.9% of Loop Industries shares are owned by institutional investors. 0.1% of LyondellBasell Industries shares are owned by insiders. Comparatively, 49.7% of Loop Industries shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Analyst Recommendations
This is a summary of recent ratings and target prices for LyondellBasell Industries and Loop Industries, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| LyondellBasell Industries | 3 | 9 | 7 | 1 | 2.30 |
| Loop Industries | 0 | 1 | 0 | 0 | 2.00 |
Valuation & Earnings
This table compares LyondellBasell Industries and Loop Industries”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| LyondellBasell Industries | $30.15 billion | 0.68 | -$738.00 million | $3.96 | 16.11 |
| Loop Industries | $510,000.00 | 22.30 | -$12.30 million | ($0.25) | -0.93 |
Loop Industries has lower revenue, but higher earnings than LyondellBasell Industries. Loop Industries is trading at a lower price-to-earnings ratio than LyondellBasell Industries, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
LyondellBasell Industries has a beta of 0.29, indicating that its share price is 71% less volatile than the S&P 500. Comparatively, Loop Industries has a beta of 1.54, indicating that its share price is 54% more volatile than the S&P 500.
Profitability
This table compares LyondellBasell Industries and Loop Industries’ 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% |
| Loop Industries | -2,154.12% | N/A | -146.03% |
Summary
LyondellBasell Industries beats Loop Industries on 11 of the 15 factors compared between the two stocks.
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.
About Loop Industries
Loop Industries, Inc. is a Montreal, Quebec-based technology company focused on advancing the circular economy for plastics. The company has developed a patented technology designed to break down waste polyethylene terephthalate (PET) and polyester fiber into their basic building-block chemicals, which can then be used to manufacture new PET plastic and polyester products. Loop’s process is intended to handle PET waste that may be difficult to recycle through conventional mechanical methods, including materials that are colored, contaminated, or otherwise unsuitable for traditional recycling.
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