Trecora Resources (NYSE: TREC) and LyondellBasell Industries NV (NYSE:LYB) are both basic materials companies, but which is the better business? We will compare the two companies based on the strength of their profitability, earnings, valuation, institutional ownership, dividends, analyst recommendations and risk.

Valuation and Earnings

This table compares Trecora Resources and LyondellBasell Industries NV’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Trecora Resources $229.00 million 1.37 $26.34 million $0.09 143.35
LyondellBasell Industries NV $31.95 billion 1.18 $6.14 billion $8.96 10.67

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.

Risk & Volatility

Trecora Resources has a beta of 1.56, indicating that its stock price is 56% more volatile than the S&P 500. Comparatively, LyondellBasell Industries NV has a beta of 1.04, indicating that its stock price is 4% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Trecora Resources and LyondellBasell Industries NV, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Trecora Resources 0 0 3 0 3.00
LyondellBasell Industries NV 1 5 8 0 2.50

Trecora Resources presently has a consensus target price of $15.67, indicating a potential upside of 21.45%. LyondellBasell Industries NV has a consensus target price of $95.92, indicating a potential upside of 0.36%. Given Trecora Resources’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Trecora Resources is more favorable than LyondellBasell Industries NV.

Profitability

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

Net Margins Return on Equity Return on Assets
Trecora Resources 0.97% 3.94% 2.23%
LyondellBasell Industries NV 11.40% 60.87% 16.41%

Insider and Institutional Ownership

41.6% of Trecora Resources shares are owned by institutional investors. Comparatively, 73.8% of LyondellBasell Industries NV shares are owned by institutional investors. 6.6% of Trecora Resources shares are owned by company insiders. Comparatively, 0.1% of LyondellBasell Industries NV shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

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. Trecora Resources has increased its dividend for 5 consecutive years.

Summary

LyondellBasell Industries NV beats Trecora Resources on 9 of the 17 factors compared between the two stocks.

Trecora Resources Company Profile

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.

LyondellBasell Industries NV Company Profile

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.

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