Comparing Alfa (OTCMKTS:ALFFF) and LyondellBasell Industries (NYSE:LYB)

LyondellBasell Industries (NYSE:LYB) and Alfa (OTCMKTS:ALFFF) are both materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for LyondellBasell Industries and Alfa, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LyondellBasell Industries	3	8	9	1	2.38
Alfa	0	0	0	0	0.00

LyondellBasell Industries currently has a consensus target price of $72.56, indicating a potential upside of 15.72%. Given LyondellBasell Industries’ stronger consensus rating and higher probable upside, equities analysts clearly believe LyondellBasell Industries is more favorable than Alfa.

Valuation and Earnings

This table compares LyondellBasell Industries and Alfa”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LyondellBasell Industries	$30.15 billion	0.67	-$738.00 million	($1.13)	-55.49
Alfa	N/A	N/A	N/A	$1.04	1.01

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

Institutional and Insider Ownership

71.2% of LyondellBasell Industries shares are held by institutional investors. Comparatively, 16.4% of Alfa shares are held by institutional investors. 0.1% of LyondellBasell 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
LyondellBasell Industries	-1.13%	17.44%	5.30%
Alfa	N/A	N/A	N/A

Summary

LyondellBasell Industries beats Alfa on 9 of the 12 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 Alfa

Alfa S.A.B. de C.V., together with its subsidiaries, engages in the petrochemical and synthetic fiber and refrigerated food businesses in Mexico. It operates through two segments, Alpek and Sigma. The company manufactures petrochemical and synthetic fiber products, including purified terephtalic acid, polyethylene terephthalate (PET), recycled PET, polypropylene, expandable polystyrene, chemical specialties, and industrial chemicals. It also provides refrigerated food products comprising cooked meats, such as ham, sausages, bacon, pork sausage, etc.; aged meats, including serrano, prosciutto, salami, fuet, etc.; dairy products, which includes yogurt, cheese, etc.; and snacks, prepared foods, non-perishable products, refrigerated, frozen, beverages, plant-based products, drinks, etc. The company markets its products to approximately 29 countries worldwide. Alfa S.A.B. de C.V. was founded in 1974 and is headquartered in San Pedro Garza García, Mexico.