Loop Industries (NASDAQ:LOOP – Get Free Report) and LyondellBasell Industries (NYSE:LYB – Get Free Report) are both materials companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, risk, analyst recommendations, valuation, institutional ownership and profitability.
Risk and Volatility
Loop Industries has a beta of 1.54, meaning that its stock price is 54% more volatile than the S&P 500. Comparatively, LyondellBasell Industries has a beta of 0.29, meaning that its stock price is 71% less volatile than the S&P 500.
Valuation and Earnings
This table compares Loop Industries and LyondellBasell Industries”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Loop Industries | $510,000.00 | 24.02 | -$12.30 million | ($0.25) | -1.00 |
| LyondellBasell Industries | $31.96 billion | 0.62 | -$738.00 million | $3.96 | 15.55 |
Loop Industries has higher earnings, but lower revenue than LyondellBasell Industries. Loop Industries is trading at a lower price-to-earnings ratio than LyondellBasell Industries, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings and target prices for Loop Industries and LyondellBasell Industries, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Loop Industries | 0 | 1 | 0 | 0 | 2.00 |
| LyondellBasell Industries | 3 | 10 | 7 | 1 | 2.29 |
LyondellBasell Industries has a consensus target price of $73.22, indicating a potential upside of 18.93%. Given LyondellBasell Industries’ stronger consensus rating and higher probable upside, analysts clearly believe LyondellBasell Industries is more favorable than Loop Industries.
Profitability
This table compares Loop Industries and LyondellBasell Industries’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Loop Industries | -2,154.12% | N/A | -146.03% |
| LyondellBasell Industries | 4.06% | 21.94% | 6.73% |
Institutional and Insider Ownership
4.9% of Loop Industries shares are owned by institutional investors. Comparatively, 71.2% of LyondellBasell Industries shares are owned by institutional investors. 49.7% of Loop Industries shares are owned by company insiders. Comparatively, 0.1% of LyondellBasell Industries 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.
Summary
LyondellBasell Industries beats Loop Industries on 10 of the 14 factors compared between the two stocks.
About Loop Industries
Loop Industries, Inc., a technology company, focuses on depolymerizing waste polyethylene terephthalate PET plastics and polyester fibers, including plastic bottles, packaging, carpets and textiles of any color, transparency and even ocean plastics that have been degraded by the sun and salt, to its base building blocks. Its polymerized monomers into virgin-quality PET resins for use in food-grade plastic packaging, such as plastic bottles for water and carbonated soft drinks, and containers for food and other consumer products; and polyester fibers, including textiles, clothing, and apparel. The company was incorporated in 2010 and is based in Terrebonne, Canada.
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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