Financial Survey: NL Industries (NYSE:NL) versus Worley (OTCMKTS:WYGPY)

Worley (OTCMKTS:WYGPY) and NL Industries (NYSE:NL) are both industrials companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, earnings, analyst recommendations, profitability and valuation.

Volatility & Risk

Worley has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500. Comparatively, NL Industries has a beta of 0.22, suggesting that its stock price is 78% less volatile than the S&P 500.

Institutional and Insider Ownership

10.7% of NL Industries shares are held by institutional investors. 0.3% of NL Industries shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations and price targets for Worley and NL Industries, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Worley	0	1	1	0	2.50
NL Industries	0	1	0	0	2.00

Dividends

Worley pays an annual dividend of $0.28 per share and has a dividend yield of 3.9%. NL Industries pays an annual dividend of $0.40 per share and has a dividend yield of 6.0%. NL Industries pays out -76.9% of its earnings in the form of a dividend. NL Industries has raised its dividend for 2 consecutive years. NL Industries is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares Worley and NL Industries”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Worley	$7.27 billion	0.48	$264.87 million	N/A	N/A
NL Industries	$158.30 million	2.08	-$37.83 million	($0.52)	-12.92

Worley has higher revenue and earnings than NL Industries.

Profitability

This table compares Worley and NL Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Worley	N/A	N/A	N/A
NL Industries	-15.75%	-6.67%	-5.38%

Summary

Worley beats NL Industries on 8 of the 14 factors compared between the two stocks.

About Worley

Worley Limited provides professional project and asset services to energy, chemicals, and resources sectors worldwide. The company offers digital, consulting, engineering and design, construction management, construction and fabrication, supply chain management, project management, and operation and maintenance services, as well as maintenance, modification, and operation services. It serves new energy, power, upstream and midstream, refining and chemicals, and infrastructure markets, as well as mining, minerals, and metals markets. The company was formerly known as WorleyParsons Limited and changed its name to Worley Limited in October 2019. The company was founded in 1893 and is based in Sydney, Australia.

About NL Industries

NL Industries, Inc., through its subsidiary, CompX International Inc., operates in the component products industry in Europe, North America, the Asia Pacific, and internationally. The company manufactures and sells mechanical and electronic cabinet locks and other locking mechanisms, including disc tumbler locks; pin tumbler locking mechanisms under KeSet, System 64, TuBar, and Turbine brands; and electronic locks under CompX eLock and StealthLock brands for use in various applications, such as mailboxes, ignition systems, file cabinets, desk drawers, tool storage cabinets, high security medical cabinetry, integrated inventory and access control secured narcotics boxes, electronic circuit panels, storage compartments, gas station security, vending and cash containment machines. It also offers original equipment and aftermarket stainless steel exhaust headers, exhaust pipes, mufflers, and other exhaust components; gauges, such as GPS speedometers and tachometers; mechanical and electronic controls and throttles; wake enhancement devices, trim tabs, steering wheels, and other billet aluminum accessories; dash panels, LED indicators, wire harnesses, and other accessories; and grab handles, pin cleats, and other accessories; primarily for performance and ski/wakeboard and performance boats. In addition, the company produces and markets value-added titanium dioxide pigments, a base industrial product used in imparting whiteness, brightness, opacity, and durability to a diverse range of customer applications and end-use markets, including coatings, plastics, paper, inks, cosmetics, pharmaceuticals, and other industrial and consumer products. The company sells its component products directly to original equipment manufacturers, as well as through distributors. NL Industries, Inc. was founded in 1891 and is based in Dallas, Texas. NL Industries, Inc. operates as a subsidiary of Valhi, Inc.