DuPont de Nemours (NYSE:DD – Get Free Report) and LyondellBasell Industries (NYSE:LYB – Get Free Report) are both large-cap basic materials companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, valuation and profitability.
Dividends
DuPont de Nemours pays an annual dividend of $0.80 per share and has a dividend yield of 1.7%. LyondellBasell Industries pays an annual dividend of $2.76 per share and has a dividend yield of 3.7%. DuPont de Nemours pays out -43.0% of its earnings in the form of a dividend. LyondellBasell Industries pays out -118.5% 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 increased 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.
Institutional and Insider Ownership
74.0% of DuPont de Nemours shares are held by institutional investors. Comparatively, 71.2% of LyondellBasell Industries shares are held by institutional investors. 0.6% of DuPont de Nemours shares are held by insiders. Comparatively, 0.1% of LyondellBasell Industries shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Earnings & Valuation
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| DuPont de Nemours | $6.85 billion | 2.86 | -$779.00 million | ($1.86) | -25.72 |
| LyondellBasell Industries | $30.15 billion | 0.79 | -$738.00 million | ($2.33) | -31.87 |
LyondellBasell Industries has higher revenue and earnings than DuPont de Nemours. LyondellBasell Industries is trading at a lower price-to-earnings ratio than DuPont de Nemours, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for DuPont de Nemours and LyondellBasell Industries, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| DuPont de Nemours | 1 | 3 | 12 | 1 | 2.76 |
| LyondellBasell Industries | 4 | 13 | 5 | 1 | 2.13 |
DuPont de Nemours currently has a consensus target price of $51.86, suggesting a potential upside of 8.41%. LyondellBasell Industries has a consensus target price of $68.17, suggesting a potential downside of 8.19%. Given DuPont de Nemours’ stronger consensus rating and higher probable upside, equities analysts clearly believe DuPont de Nemours is more favorable than LyondellBasell Industries.
Profitability
This table compares DuPont de Nemours and LyondellBasell Industries’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| DuPont de Nemours | -7.03% | 7.37% | 4.69% |
| LyondellBasell Industries | -2.46% | 4.93% | 1.60% |
Risk & Volatility
DuPont de Nemours has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500. Comparatively, LyondellBasell Industries has a beta of 0.4, suggesting that its stock price is 60% less volatile than the S&P 500.
Summary
DuPont de Nemours beats LyondellBasell Industries on 11 of the 17 factors compared between the two stocks.
About DuPont de Nemours
DuPont de Nemours, Inc. provides technology-based materials and solutions in the United States, Canada, the Asia Pacific, Latin America, Europe, the Middle East, and Africa. It operates through Electronics & Industrial, Water & Protection, and Corporate & Other segments. The Electronics & Industrial segment supplies materials and solutions for the fabrication of semiconductors and integrated circuits. This segment also provides semiconductor and advanced packaging materials; dielectric and metallization solutions for chip packaging; and silicones for light emitting diode packaging and semiconductor applications; permanent and process chemistries for the fabrication of printed circuit boards to include laminates and substrates, and electroless and electrolytic metallization solutions, and electromagnetic shielding and thermal management solutions, as well as patterning solutions, and materials and metallization processes for metal finishing, decorative, and industrial applications. In addition, it offers various materials to manufacture rigid and flexible displays for organic light emitting diode, and other display applications; provides high performance parts, and specialty silicone elastomers, and lubricants to automotive, aerospace, electronics, industrial, and healthcare markets; and photopolymer plates and platemaking systems used in flexographic printing, and digital inks for textile, commercial, and home-office printing applications. The Water & Protection segment provides engineered products and integrated systems for worker safety, water purification and separation, transportation, energy, medical packaging and building materials. The Corporate & Other segment offers auto adhesives and fluids; Multibase; and Tedlar products. The company was formerly known as DowDuPont Inc. and changed its name to DuPont de Nemours, Inc. in June 2019. DuPont de Nemours, Inc. was incorporated in 2015 and is headquartered in Wilmington, Delaware.
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.
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