Sensient Technologies (NYSE:SXT) versus LyondellBasell Industries (NYSE:LYB) Head to Head Comparison

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

Institutional & Insider Ownership

71.2% of LyondellBasell Industries shares are held by institutional investors. Comparatively, 90.9% of Sensient Technologies shares are held by institutional investors. 0.1% of LyondellBasell Industries shares are held by insiders. Comparatively, 1.3% of Sensient Technologies shares are held 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 Ratings

This is a breakdown of recent ratings for LyondellBasell Industries and Sensient Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LyondellBasell Industries	3	9	7	1	2.30
Sensient Technologies	0	2	3	0	2.60

LyondellBasell Industries presently has a consensus price target of $73.22, suggesting a potential upside of 15.00%. Sensient Technologies has a consensus price target of $139.67, suggesting a potential upside of 20.87%. Given Sensient Technologies’ stronger consensus rating and higher possible upside, analysts plainly believe Sensient Technologies is more favorable than LyondellBasell Industries.

Profitability

This table compares LyondellBasell Industries and Sensient Technologies’ 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%
Sensient Technologies	9.69%	14.08%	7.44%

Risk & Volatility

LyondellBasell Industries has a beta of 0.29, suggesting that its stock price is 71% less volatile than the S&P 500. Comparatively, Sensient Technologies has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500.

Dividends

LyondellBasell Industries pays an annual dividend of $2.76 per share and has a dividend yield of 4.3%. Sensient Technologies pays an annual dividend of $1.64 per share and has a dividend yield of 1.4%. LyondellBasell Industries pays out 69.7% of its earnings in the form of a dividend. Sensient Technologies pays out 41.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. LyondellBasell Industries has raised its dividend for 14 consecutive years. LyondellBasell Industries is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares LyondellBasell Industries and Sensient Technologies”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	16.08
Sensient Technologies	$1.61 billion	3.05	$134.49 million	$3.97	29.11

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

Summary

Sensient Technologies beats LyondellBasell Industries on 12 of the 18 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 Sensient Technologies

Sensient Technologies Corporation develops, manufactures and markets colors, flavors and other specialty ingredients used by manufacturers around the world. Its products serve industries including food and beverages, pharmaceuticals, personal care, cosmetics and household products. The company operates through businesses focused on colors, flavors and extracts, and related specialty ingredients. Its offerings include natural and synthetic color solutions, flavor systems and extracts, and ingredients designed for use in a range of consumer and industrial products.