Financial Contrast: LyondellBasell Industries (NYSE:LYB) versus Northern Technologies International (NASDAQ:NTIC)

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

Earnings and Valuation

This table compares LyondellBasell Industries and Northern Technologies International”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LyondellBasell Industries	$30.15 billion	0.66	-$738.00 million	($2.49)	-24.81
Northern Technologies International	$84.24 million	0.91	$20,000.00	($0.08)	-101.25

Northern Technologies International has lower revenue, but higher earnings than LyondellBasell Industries. Northern Technologies International 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 Recommendations

This is a breakdown of current recommendations and price targets for LyondellBasell Industries and Northern Technologies International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LyondellBasell Industries	3	8	8	2	2.43
Northern Technologies International	1	1	0	0	1.50

LyondellBasell Industries presently has a consensus price target of $76.71, indicating a potential upside of 24.17%. Given LyondellBasell Industries’ stronger consensus rating and higher possible upside, equities analysts clearly believe LyondellBasell Industries is more favorable than Northern Technologies International.

Insider & Institutional Ownership

71.2% of LyondellBasell Industries shares are held by institutional investors. Comparatively, 32.9% of Northern Technologies International shares are held by institutional investors. 0.1% of LyondellBasell Industries shares are held by company insiders. Comparatively, 24.9% of Northern Technologies International shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares LyondellBasell Industries and Northern Technologies International’s 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%
Northern Technologies International	-0.87%	0.05%	0.04%

Volatility & Risk

LyondellBasell Industries has a beta of 0.28, indicating that its stock price is 72% less volatile than the S&P 500. Comparatively, Northern Technologies International has a beta of 0.19, indicating that its stock price is 81% less volatile than the S&P 500.

Summary

LyondellBasell Industries beats Northern Technologies International on 10 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 Northern Technologies International

Northern Technologies International Corporation develops and markets rust and corrosion inhibiting solutions in North America, South America, Europe, Asia, the Middle East and internationally. It offers rust and corrosion inhibiting products, such as plastic and paper packaging, liquids, coatings, rust removers, cleaners, diffusers, and engineered solutions designed for the oil and gas industry under the ZERUST brand. The company provides a portfolio of bio-based and certified compostable polymer resin compounds and finished products under the Natur-Tec brand. In addition, it offers on-site and technical consulting for rust and corrosion prevention issues. It sells its products and services to automotive, electronics, electrical, mechanical, military, retail consumer, and oil and gas markets through direct sales force, network of independent distributors, agents, manufacturer's sales representatives, and strategic partners. The company was founded in 1970 and is headquartered in Circle Pines, Minnesota.