Head to Head Review: DuPont de Nemours (NYSE:DD) versus LyondellBasell Industries (NYSE:LYB)

LyondellBasell Industries (NYSE:LYB) and DuPont de Nemours (NYSE:DD) are both large-cap basic materials companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, earnings and institutional ownership.

Analyst Ratings

This is a summary of recent recommendations and price targets for LyondellBasell Industries and DuPont de Nemours, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LyondellBasell Industries	4	13	5	1	2.13
DuPont de Nemours	1	3	12	1	2.76

LyondellBasell Industries currently has a consensus target price of $67.39, suggesting a potential downside of 14.28%. DuPont de Nemours has a consensus target price of $51.86, suggesting a potential upside of 13.92%. Given DuPont de Nemours’ stronger consensus rating and higher probable upside, analysts plainly believe DuPont de Nemours is more favorable than LyondellBasell Industries.

Profitability

This table compares LyondellBasell Industries and DuPont de Nemours’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LyondellBasell Industries	-2.46%	4.93%	1.60%
DuPont de Nemours	-7.03%	7.37%	4.69%

Volatility and Risk

LyondellBasell Industries has a beta of 0.4, meaning that its stock price is 60% less volatile than the S&P 500. Comparatively, DuPont de Nemours has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500.

Dividends

LyondellBasell Industries pays an annual dividend of $2.76 per share and has a dividend yield of 3.5%. DuPont de Nemours pays an annual dividend of $0.80 per share and has a dividend yield of 1.8%. LyondellBasell Industries pays out -118.5% of its earnings in the form of a dividend. DuPont de Nemours pays out -43.0% 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.

Insider & Institutional Ownership

71.2% of LyondellBasell Industries shares are held by institutional investors. Comparatively, 74.0% of DuPont de Nemours shares are held by institutional investors. 0.1% of LyondellBasell Industries shares are held by insiders. Comparatively, 0.6% of DuPont de Nemours shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares LyondellBasell Industries and DuPont de Nemours”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LyondellBasell Industries	$30.15 billion	0.84	-$738.00 million	($2.33)	-33.74
DuPont de Nemours	$6.85 billion	2.72	-$779.00 million	($1.86)	-24.48

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.

Summary

DuPont de Nemours beats LyondellBasell Industries on 11 of the 17 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 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.