LyondellBasell Industries (NYSE:LYB – Get Free Report) and Northern Technologies International (NASDAQ:NTIC – Get Free Report) are both basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, profitability, earnings, dividends and risk.
Risk and Volatility
LyondellBasell Industries has a beta of 0.28, meaning that its stock price is 72% less volatile than the S&P 500. Comparatively, Northern Technologies International has a beta of 0.19, meaning that its stock price is 81% less volatile than the S&P 500.
Valuation and Earnings
This table compares LyondellBasell Industries and Northern Technologies International”s 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 | 0.64 | -$738.00 million | ($2.49) | -24.08 |
| Northern Technologies International | $84.24 million | 0.91 | $20,000.00 | ($0.08) | -100.50 |
Northern Technologies International has lower revenue, but higher earnings than LyondellBasell Industries. Northern Technologies International is trading at a lower price-to-earnings ratio than LyondellBasell Industries, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares LyondellBasell Industries and Northern Technologies International’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% |
| Northern Technologies International | -0.87% | 0.05% | 0.04% |
Institutional & Insider Ownership
71.2% of LyondellBasell Industries shares are owned by institutional investors. Comparatively, 32.9% of Northern Technologies International shares are owned by institutional investors. 0.1% of LyondellBasell Industries shares are owned by company insiders. Comparatively, 24.9% of Northern Technologies International shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Analyst Recommendations
This is a summary of current ratings and price targets for LyondellBasell Industries and Northern Technologies International, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| LyondellBasell Industries | 3 | 8 | 8 | 2 | 2.43 |
| Northern Technologies International | 1 | 1 | 0 | 0 | 1.50 |
LyondellBasell Industries currently has a consensus price target of $76.71, indicating a potential upside of 27.93%. Given LyondellBasell Industries’ stronger consensus rating and higher probable upside, research analysts plainly believe LyondellBasell Industries is more favorable than Northern Technologies International.
Summary
LyondellBasell Industries beats Northern Technologies International on 10 of the 15 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 Northern Technologies International
Northern Technologies International Corporation develops and markets rust and corrosion inhibiting solutions in North America, South America, Europe, Asia, the Middle East and internationally. It offers rust and corrosion inhibiting products, such as plastic and paper packaging, liquids, coatings, rust removers, cleaners, diffusers, and engineered solutions designed for the oil and gas industry under the ZERUST brand. The company provides a portfolio of bio-based and certified compostable polymer resin compounds and finished products under the Natur-Tec brand. In addition, it offers on-site and technical consulting for rust and corrosion prevention issues. It sells its products and services to automotive, electronics, electrical, mechanical, military, retail consumer, and oil and gas markets through direct sales force, network of independent distributors, agents, manufacturer's sales representatives, and strategic partners. The company was founded in 1970 and is headquartered in Circle Pines, Minnesota.
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