Analyzing LyondellBasell Industries NV (LYB) & Trecora Resources (TREC)
LyondellBasell Industries NV (NYSE: LYB) and Trecora Resources (NYSE:TREC) are both basic materials companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, earnings, risk, profitability, dividends, analyst recommendations and valuation.
This is a summary of current ratings and recommmendations for LyondellBasell Industries NV and Trecora Resources, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|LyondellBasell Industries NV||1||5||8||0||2.50|
LyondellBasell Industries NV currently has a consensus target price of $95.92, suggesting a potential upside of 1.55%. Trecora Resources has a consensus target price of $15.67, suggesting a potential upside of 21.92%. Given Trecora Resources’ stronger consensus rating and higher possible upside, analysts clearly believe Trecora Resources is more favorable than LyondellBasell Industries NV.
LyondellBasell Industries NV pays an annual dividend of $3.60 per share and has a dividend yield of 3.8%. Trecora Resources does not pay a dividend. LyondellBasell Industries NV pays out 40.2% of its earnings in the form of a dividend. LyondellBasell Industries NV has increased its dividend for 5 consecutive years.
Institutional and Insider Ownership
73.8% of LyondellBasell Industries NV shares are held by institutional investors. Comparatively, 41.6% of Trecora Resources shares are held by institutional investors. 0.1% of LyondellBasell Industries NV shares are held by insiders. Comparatively, 6.6% of Trecora Resources shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Risk & Volatility
LyondellBasell Industries NV has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500. Comparatively, Trecora Resources has a beta of 1.56, meaning that its share price is 56% more volatile than the S&P 500.
This table compares LyondellBasell Industries NV and Trecora Resources’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|LyondellBasell Industries NV||11.40%||60.87%||16.41%|
Earnings & Valuation
This table compares LyondellBasell Industries NV and Trecora Resources’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|LyondellBasell Industries NV||$31.95 billion||1.17||$6.14 billion||$8.96||10.54|
|Trecora Resources||$229.00 million||1.36||$26.34 million||$0.09||142.79|
LyondellBasell Industries NV has higher revenue and earnings than Trecora Resources. LyondellBasell Industries NV is trading at a lower price-to-earnings ratio than Trecora Resources, indicating that it is currently the more affordable of the two stocks.
LyondellBasell Industries NV beats Trecora Resources on 10 of the 17 factors compared between the two stocks.
About LyondellBasell Industries NV
LyondellBasell Industries N.V. is a chemical company. The Company operates in five segments: Olefins and Polyolefins-Americas (O&P-Americas), Olefins and Polyolefins-Europe, Asia, International (O&P-EAI), Intermediates and Derivatives (I&D), Refining and Technology. The O&P-Americas segment produces and markets olefins and co-products, polyethylene and polypropylene. The O&P-EAI segment produces and markets olefins and co-products, polyethylene and polypropylene. The I&D segment produces and markets propylene oxide (PO) and its derivatives, oxyfuels and related products, and intermediate chemicals, such as styrene monomer (SM), acetyls and ethylene oxides. The primary product of the Refining segment is refined products made from sulfur crude oil and other crude oils of various types and sources available on the United States Gulf Coast. The Technology segment develops and licenses chemical and polyolefin process technologies and manufactures and sells polyolefin catalysts.
About Trecora Resources
Trecora Resources (TREC) is a provider of high-purity specialty hydrocarbons and waxes. TREC owns and operates a facility located in southeast Texas, just north of Beaumont, which specializes in high-purity hydrocarbons and other petrochemical manufacturing. The Company operates through two segments: specialty petrochemical products and specialty synthetic waxes. The specialty petrochemical products segment operates through South Hampton Resources, Inc. (SHR). The specialty synthetic wax segment operates through Trecora Chemical, Inc. (TC). SHR owns and operates a specialty petrochemical facility that produces hydrocarbons and other petroleum-based products, including isopentane, normal pentane, isohexane and hexane. TC produces specialty polyethylene and poly alpha olefin waxes, and provides custom processing services. In addition, the Company is the 33.4% owner of Al Masane Al Kobra Mining Co., a Saudi Arabian joint stock company.
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