LyondellBasell Industries N.V. (LYB) vs Solstice Advanced Materials Inc. (SOLS)

LyondellBasell Industries N.V. and Solstice Advanced Materials Inc. are both Specialty Chemicals companies. LyondellBasell Industries N.V. is the larger, with a market value of $19.6B against $9.0B — 2.2× the size. LyondellBasell Industries N.V. has negative trailing earnings, so its P/E is not meaningful; Solstice Advanced Materials Inc. trades at 26.2×. Solstice Advanced Materials Inc. has the higher net margin (5.13% vs −1.13%) and the higher return on invested capital (12.7% vs 2.87%). Across the 18 metrics below, LyondellBasell Industries N.V. leads on 9 and Solstice Advanced Materials Inc. on 9.

Valuation

Metric LYB SOLS Specialty Chemicals median
P/E n/m 26.18 24.83
P/S 0.60 2.20 1.46
P/B 1.76 5.67 1.76
Price to free cash flow 10.99 51.41 19.84
EV/EBITDA 12.11 12.75 13.18
EV/Sales 0.93 2.52 1.84
Earnings yield (1.94%) 3.82% 2.11%
Free cash flow yield 9.10% 1.95% 2.29%

Profitability

Metric LYB SOLS Specialty Chemicals median
Gross margin 12.76% 30.62% 29.23%
Operating margin 3.09% 14.36% 3.63%
Net margin (1.13%) 5.13% 2.89%
Free cash flow margin 5.48% 4.27% 3.78%
Return on equity (3.12%) 8.81% 3.62%
Return on assets (1.01%) 7.10% 0.35%
Return on invested capital 2.87% 12.65% 2.75%

Growth

Metric LYB SOLS Specialty Chemicals median
Revenue growth (TTM) (1.75%) — 4.51%
EPS growth (last fiscal year) (156.39%) (60.91%) —
Revenue growth, 5-year CAGR 1.67% — 6.30%
Net income growth, 5-year CAGR 0.00% — 0.00%

Health

Metric LYB SOLS Specialty Chemicals median
Debt to equity 1.21 1.30 0.54
Current ratio 1.64 1.46 1.94
Net debt to EBITDA 9.67 1.85 2.03

Dividend

Metric LYB SOLS Specialty Chemicals median
Dividend yield 5.35% — 1.69%
Payout ratio 0.75 — 0.25

Size

Metric LYB SOLS Specialty Chemicals median
Market cap 19.60b 8.99b 2.43b

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