Head-To-Head Review: H. B. Fuller (NYSE:FUL) vs. LyondellBasell Industries (NYSE:LYB)

H. B. Fuller (NYSE:FUL) and LyondellBasell Industries (NYSE:LYB) are both materials companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, risk, valuation, earnings, dividends and profitability.

Dividends

H. B. Fuller pays an annual dividend of $0.98 per share and has a dividend yield of 1.9%. LyondellBasell Industries pays an annual dividend of $2.76 per share and has a dividend yield of 4.3%. H. B. Fuller pays out 30.1% of its earnings in the form of a dividend. LyondellBasell Industries pays out -244.2% 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. H. B. Fuller has raised its dividend for 57 consecutive years and LyondellBasell Industries has raised its dividend for 14 consecutive years. LyondellBasell Industries is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Ratings

This is a summary of recent ratings for H. B. Fuller and LyondellBasell Industries, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
H. B. Fuller	0	2	3	2	3.00
LyondellBasell Industries	4	8	7	1	2.25

H. B. Fuller presently has a consensus price target of $67.86, suggesting a potential upside of 31.14%. LyondellBasell Industries has a consensus price target of $72.41, suggesting a potential upside of 13.65%. Given H. B. Fuller’s stronger consensus rating and higher probable upside, analysts plainly believe H. B. Fuller is more favorable than LyondellBasell Industries.

Volatility & Risk

H. B. Fuller has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500. Comparatively, LyondellBasell Industries has a beta of 0.31, suggesting that its share price is 69% less volatile than the S&P 500.

Insider and Institutional Ownership

95.9% of H. B. Fuller shares are owned by institutional investors. Comparatively, 71.2% of LyondellBasell Industries shares are owned by institutional investors. 1.8% of H. B. Fuller shares are owned by insiders. Comparatively, 0.1% of LyondellBasell Industries shares are owned by 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.

Profitability

This table compares H. B. Fuller and LyondellBasell Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
H. B. Fuller	5.29%	12.18%	4.73%
LyondellBasell Industries	-1.13%	17.44%	5.30%

Valuation and Earnings

This table compares H. B. Fuller and LyondellBasell Industries”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
H. B. Fuller	$3.47 billion	0.80	$151.97 million	$3.26	15.87
LyondellBasell Industries	$30.15 billion	0.68	-$738.00 million	($1.13)	-56.38

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

Summary

H. B. Fuller beats LyondellBasell Industries on 12 of the 18 factors compared between the two stocks.

About H. B. Fuller

H.B. Fuller Company, together with its subsidiaries, formulates, manufactures, and markets adhesives, sealants, coatings, polymers, tapes, encapsulants, additives, and other specialty chemical products. It operates through three segments: Hygiene, Health and Consumable Adhesives; Engineering Adhesives; and Construction Adhesives. The Hygiene, Health and Consumable Adhesives segment produces and supplies specialty industrial adhesives, such as thermoplastic, thermoset, reactive, water-based, and solvent-based products for applications in various markets, including packaging, converting, nonwoven and hygiene, and health and beauty. The Engineering Adhesives segment produces and supplies high performance industrial adhesives comprising reactive, light cure, two-part liquids, polyurethane, silicone, film, and fast cure products to the durable assembly, performance wood and textile, transportation, electronics, clean energy, aerospace and defense, appliance, heavy machinery, and insulating glass markets. The Construction Adhesives segment provides products used for tile setting, commercial roofing, heating, ventilation, and air conditioning and insulation applications, as well as caulks and sealants for the consumer market and professional trade. The company sells its products directly to customers, as well as through distributors and retailers in the Americas, Europe, India, the Middle East, Africa, and the Asia Pacific. H.B. Fuller Company was founded in 1887 and is headquartered in Saint Paul, Minnesota.

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.