Alfa (OTCMKTS:ALFFF) and LyondellBasell Industries (NYSE:LYB) Financial Contrast

Alfa (OTCMKTS:ALFFF) and LyondellBasell Industries (NYSE:LYB) are both materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.

Insider & Institutional Ownership

16.4% of Alfa shares are owned by institutional investors. Comparatively, 71.2% of LyondellBasell Industries shares are owned by institutional investors. 0.1% of LyondellBasell Industries shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Alfa and LyondellBasell Industries”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Alfa	N/A	N/A	N/A	$1.04	1.01
LyondellBasell Industries	$30.15 billion	0.67	-$738.00 million	($1.13)	-55.49

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

Analyst Recommendations

This is a breakdown of recent recommendations for Alfa and LyondellBasell Industries, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Alfa	0	0	0	0	0.00
LyondellBasell Industries	3	8	9	1	2.38

LyondellBasell Industries has a consensus target price of $72.56, indicating a potential upside of 15.72%. Given LyondellBasell Industries’ stronger consensus rating and higher possible upside, analysts plainly believe LyondellBasell Industries is more favorable than Alfa.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Alfa	N/A	N/A	N/A
LyondellBasell Industries	-1.13%	17.44%	5.30%

Summary

LyondellBasell Industries beats Alfa on 9 of the 12 factors compared between the two stocks.

About Alfa

Alfa S.A.B. de C.V., together with its subsidiaries, engages in the petrochemical and synthetic fiber and refrigerated food businesses in Mexico. It operates through two segments, Alpek and Sigma. The company manufactures petrochemical and synthetic fiber products, including purified terephtalic acid, polyethylene terephthalate (PET), recycled PET, polypropylene, expandable polystyrene, chemical specialties, and industrial chemicals. It also provides refrigerated food products comprising cooked meats, such as ham, sausages, bacon, pork sausage, etc.; aged meats, including serrano, prosciutto, salami, fuet, etc.; dairy products, which includes yogurt, cheese, etc.; and snacks, prepared foods, non-perishable products, refrigerated, frozen, beverages, plant-based products, drinks, etc. The company markets its products to approximately 29 countries worldwide. Alfa S.A.B. de C.V. was founded in 1974 and is headquartered in San Pedro Garza García, Mexico.

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.