LyondellBasell Industries N.V. (LYB) vs PPG Industries, Inc. (PPG)

LyondellBasell Industries N.V. and PPG Industries, Inc. are both Specialty Chemicals companies. PPG Industries, Inc. is the larger, with a market value of $23.6B against $19.6B — 1.2× the size. LyondellBasell Industries N.V. has negative trailing earnings, so its P/E is not meaningful; PPG Industries, Inc. trades at 15.3×. PPG Industries, Inc. grew revenue faster over the last twelve months: 4.99% against −1.75%. PPG Industries, Inc. has the higher net margin (9.57% vs −1.13%) and the higher return on invested capital (9.87% vs 2.87%). Both pay a dividend; LyondellBasell Industries N.V. yields more (5.35% vs 1.92%). Across the 22 metrics below, PPG Industries, Inc. leads on 15 and LyondellBasell Industries N.V. on 7.

Valuation

Metric LYB PPG Specialty Chemicals median
P/E n/m 15.32 24.83
P/S 0.60 1.46 1.46
P/B 1.76 2.79 1.76
Price to free cash flow 10.99 17.04 19.84
EV/EBITDA 12.11 10.72 13.18
EV/Sales 0.93 1.78 1.84
Earnings yield (1.94%) 6.53% 2.11%
Free cash flow yield 9.10% 5.87% 2.29%

Profitability

Metric LYB PPG Specialty Chemicals median
Gross margin 12.76% 40.90% 29.23%
Operating margin 3.09% 13.35% 3.63%
Net margin (1.13%) 9.57% 2.89%
Free cash flow margin 5.48% 8.57% 3.78%
Return on equity (3.12%) 19.25% 3.62%
Return on assets (1.01%) 7.04% 0.35%
Return on invested capital 2.87% 9.87% 2.75%

Growth

Metric LYB PPG Specialty Chemicals median
Revenue growth (TTM) (1.75%) 4.99% 4.51%
EPS growth (last fiscal year) (156.39%) 46.11% —
Revenue growth, 5-year CAGR 1.67% 2.79% 6.30%
Net income growth, 5-year CAGR 0.00% 8.28% 0.00%

Health

Metric LYB PPG Specialty Chemicals median
Debt to equity 1.21 0.80 0.54
Current ratio 1.64 1.58 1.94
Net debt to EBITDA 9.67 1.89 2.03

Dividend

Metric LYB PPG Specialty Chemicals median
Dividend yield 5.35% 1.92% 1.69%
Payout ratio 0.75 0.45 0.25

Size

Metric LYB PPG Specialty Chemicals median
Market cap 19.60b 23.63b 2.43b

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