LyondellBasell Industries (NYSE:LYB) versus Gulf Resources (NASDAQ:GURE) Head to Head Comparison

LyondellBasell Industries (NYSE:LYB) and Gulf Resources (NASDAQ:GURE) are both basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, dividends, risk, earnings and valuation.

Risk & Volatility

LyondellBasell Industries has a beta of 0.28, suggesting that its stock price is 72% less volatile than the S&P 500. Comparatively, Gulf Resources has a beta of -0.18, suggesting that its stock price is 118% less volatile than the S&P 500.

Profitability

This table compares LyondellBasell Industries and Gulf Resources’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LyondellBasell Industries	-2.68%	5.68%	1.77%
Gulf Resources	-286.77%	-20.62%	-17.50%

Institutional & Insider Ownership

71.2% of LyondellBasell Industries shares are owned by institutional investors. Comparatively, 3.3% of Gulf Resources shares are owned by institutional investors. 0.1% of LyondellBasell Industries shares are owned by company insiders. Comparatively, 3.2% of Gulf Resources shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

This table compares LyondellBasell Industries and Gulf Resources”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	0.72	-$738.00 million	($2.49)	-27.04
Gulf Resources	$7.66 million	0.94	-$58.94 million	($48.05)	-0.10

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

Analyst Ratings

This is a summary of recent recommendations and price targets for LyondellBasell Industries and Gulf Resources, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LyondellBasell Industries	3	8	8	2	2.43
Gulf Resources	1	0	0	0	1.00

LyondellBasell Industries presently has a consensus target price of $77.24, suggesting a potential upside of 14.70%. Given LyondellBasell Industries’ stronger consensus rating and higher possible upside, research analysts clearly believe LyondellBasell Industries is more favorable than Gulf Resources.

Summary

LyondellBasell Industries beats Gulf Resources on 11 of the 15 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 Gulf Resources

Gulf Resources, Inc., through its subsidiaries, manufactures and trades bromine and crude salt, chemical products, and natural gas in the People’s Republic of China. The company operates through four segments: Bromine, Crude salt, Chemical products, and Natural gas segments. It also provides bromine for use in bromine compounds, intermediates in organic synthesis, brominated flame retardants, fumigants, water purification compounds, dyes, medicines, and disinfectants. In addition, the company offers crude salt for use as a material in alkali and chlorine alkali production for use in the chemical, food and beverage, and other industries. In addition, it manufactures and sells chemical products for use in oil and gas field exploration, oil and gas distribution, oil field drilling, papermaking chemical agents, and inorganic chemicals, as well as materials that are used for human and animal antibiotics. The company is based in Shouguang, the People’s Republic of China.