Element Solutions Inc. (ESI) vs LyondellBasell Industries N.V. (LYB)

Element Solutions Inc. and LyondellBasell Industries N.V. are both Specialty Chemicals companies. LyondellBasell Industries N.V. is the larger, with a market value of $20.2B against $8.7B — 2.3× the size. LyondellBasell Industries N.V. has negative trailing earnings, so its P/E is not meaningful; Element Solutions Inc. trades at 47.4×. Element Solutions Inc. grew revenue faster over the last twelve months: 26.6% against −1.75%. Element Solutions Inc. has the higher net margin (5.67% vs −1.13%) and the higher return on invested capital (5.20% vs 2.87%). Both pay a dividend; LyondellBasell Industries N.V. yields more (5.37% vs 0.91%). Across the 22 metrics below, Element Solutions Inc. leads on 14 and LyondellBasell Industries N.V. on 8.

Valuation

Metric ESI LYB Specialty Chemicals median
P/E 47.36 n/m 25.37
P/S 2.71 0.66 1.46
P/B 3.02 1.94 1.84
Price to free cash flow 61.65 12.10 21.16
EV/EBITDA 18.74 12.90 12.82
EV/Sales 3.32 0.99 1.85
Earnings yield 2.11% (1.77%) 2.11%
Free cash flow yield 1.62% 8.27% 2.16%

Profitability

Metric ESI LYB Specialty Chemicals median
Gross margin 38.42% 12.76% 29.23%
Operating margin 12.56% 3.09% 3.63%
Net margin 5.67% (1.13%) 2.89%
Free cash flow margin 4.40% 5.48% 3.76%
Return on equity 6.53% (3.12%) 3.62%
Return on assets 3.31% (1.01%) 0.35%
Return on invested capital 5.20% 2.87% 2.75%

Growth

Metric ESI LYB Specialty Chemicals median
Revenue growth (TTM) 26.61% (1.75%) 4.51%
EPS growth (last fiscal year) (21.78%) (156.39%) (14.40%)
Revenue growth, 5-year CAGR 6.60% 1.67% 6.30%
Net income growth, 5-year CAGR 20.31% 0.00% 0.00%

Health

Metric ESI LYB Specialty Chemicals median
Debt to equity 0.75 1.21 0.54
Current ratio 2.91 1.64 1.94
Net debt to EBITDA 2.03 9.67 2.03

Dividend

Metric ESI LYB Specialty Chemicals median
Dividend yield 0.91% 5.37% 1.73%
Payout ratio 0.43 — 0.41

Size

Metric ESI LYB Specialty Chemicals median
Market cap 8.66b 20.24b 2.41b

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