Critical Survey: LyondellBasell Industries (NYSE:LYB) versus Corteva (NYSE:CTVA)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Corteva	5.66%	10.18%	6.00%
LyondellBasell Industries	4.06%	21.94%	6.73%

Institutional and Insider Ownership

81.5% of Corteva shares are held by institutional investors. Comparatively, 71.2% of LyondellBasell Industries shares are held by institutional investors. 0.2% of Corteva shares are held by company insiders. Comparatively, 0.1% of LyondellBasell Industries shares are held 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.

Valuation and Earnings

This table compares Corteva 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
Corteva	$17.81 billion	0.46	$1.09 billion	$1.51	8.09
LyondellBasell Industries	$30.15 billion	0.67	-$738.00 million	$3.96	15.88

Corteva has higher earnings, but lower revenue than LyondellBasell Industries. Corteva 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 Ratings

This is a summary of recent ratings and recommmendations for Corteva and LyondellBasell Industries, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Corteva	1	6	16	0	2.65
LyondellBasell Industries	3	10	7	1	2.29

Corteva presently has a consensus price target of $60.59, indicating a potential upside of 396.04%. LyondellBasell Industries has a consensus price target of $73.22, indicating a potential upside of 16.44%. Given Corteva’s stronger consensus rating and higher probable upside, equities analysts plainly believe Corteva is more favorable than LyondellBasell Industries.

Dividends

Corteva pays an annual dividend of $0.20 per share and has a dividend yield of 1.6%. LyondellBasell Industries pays an annual dividend of $2.76 per share and has a dividend yield of 4.4%. Corteva pays out 13.2% of its earnings in the form of a dividend. LyondellBasell Industries pays out 69.7% 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. Corteva has increased its dividend for 5 consecutive years and 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.

Volatility & Risk

Corteva has a beta of 0.58, suggesting that its share price is 42% less volatile than the S&P 500. Comparatively, LyondellBasell Industries has a beta of 0.29, suggesting that its share price is 71% less volatile than the S&P 500.

About Corteva

Corteva, Inc. operates in the agriculture business. It operates through two segments, Seed and Crop Protection. The Seed segment develops and supplies advanced germplasm and traits that produce optimum yield for farms. It offers trait technologies that enhance resistance to weather, disease, insects, and herbicides used to control weeds, as well as food and nutritional characteristics. This segment also provides digital solutions that assist farmer decision-making with a view to optimize product selection, and maximize yield and profitability. The Crop Protection segment offers products that protect against weeds, insects and other pests, and diseases, as well as enhances crop health above and below ground through nitrogen management and seed-applied technologies. This segment provides herbicides, insecticides, nitrogen stabilizers, and pasture and range management herbicides. It serves agricultural input industry. The company operates in the United States, Canada, Latin America, the Asia Pacific, Europe, the Middle East, and Africa. Corteva, Inc. was incorporated in 2018 and is headquartered in Indianapolis, Indiana.

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.