Critical Survey: LyondellBasell Industries (NYSE:LYB) versus China Carbon Graphite Group (OTCMKTS:CHGI)

LyondellBasell Industries (NYSE:LYB) and China Carbon Graphite Group (OTCMKTS:CHGI) are both basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, institutional ownership, profitability, risk and dividends.

Profitability

This table compares LyondellBasell Industries and China Carbon Graphite Group’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%
China Carbon Graphite Group	N/A	N/A	N/A

Risk & Volatility

LyondellBasell Industries has a beta of 0.28, indicating that its stock price is 72% less volatile than the S&P 500. Comparatively, China Carbon Graphite Group has a beta of -1.4, indicating that its stock price is 240% less volatile than the S&P 500.

Institutional & Insider Ownership

71.2% of LyondellBasell Industries shares are owned by institutional investors. 0.1% of LyondellBasell Industries shares are owned by company insiders. Comparatively, 5.5% of China Carbon Graphite Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Earnings & Valuation

This table compares LyondellBasell Industries and China Carbon Graphite Group”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	0.60	-$738.00 million	($2.49)	-22.58
China Carbon Graphite Group	N/A	N/A	N/A	N/A	N/A

China Carbon Graphite Group has lower revenue, but higher earnings than LyondellBasell Industries.

Analyst Ratings

This is a breakdown of recent ratings and price targets for LyondellBasell Industries and China Carbon Graphite Group, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LyondellBasell Industries	3	8	8	2	2.43
China Carbon Graphite Group	0	0	0	0	0.00

LyondellBasell Industries presently has a consensus target price of $75.94, indicating a potential upside of 35.07%. Given LyondellBasell Industries’ stronger consensus rating and higher possible upside, research analysts plainly believe LyondellBasell Industries is more favorable than China Carbon Graphite Group.

Summary

LyondellBasell Industries beats China Carbon Graphite Group on 9 of the 11 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 China Carbon Graphite Group

China Carbon Graphite Group, Inc., together with its subsidiaries, engages in the research and development, manufacture, rework, and sale of graphene, graphene oxide, carbon graphite felt, and graphite bipolar plates in the People's Republic of China. Its graphene oxide is used as a conductive agent in lithium ion batteries, super capacitors, rubber and plastic additives, conductive inks, special coatings, transparent conductive thin films, and chips; and graphite bipolar plates are used in solar power storage. The company operates roycarbon.com, a business-to-business and business-to-consumers Internet portal for graphite related products. China Carbon Graphite Group, Inc. was founded in 1986 and is based in Diamond Bar, California.