LyondellBasell Industries N.V. (LYB) vs Westlake Corporation (WLK)

LyondellBasell Industries N.V. and Westlake Corporation are both Specialty Chemicals companies. LyondellBasell Industries N.V. is the larger, with a market value of $19.9B against $8.5B — 2.4× the size. Westlake Corporation has negative trailing earnings, so its P/E is not meaningful; LyondellBasell Industries N.V. trades at 15.6×. LyondellBasell Industries N.V. grew revenue faster over the last twelve months: 3.54% against −0.37%. LyondellBasell Industries N.V. has the higher net margin (4.05% vs −3.87%) and the higher return on invested capital (8.48% vs −2.22%). Both pay a dividend; LyondellBasell Industries N.V. yields more (5.57% vs 3.20%). Across the 21 metrics below, LyondellBasell Industries N.V. leads on 16 and Westlake Corporation on 5.

Valuation

Metric LYB WLK Specialty Chemicals median
P/E 15.60 n/m 24.46
P/S 0.62 0.74 1.64
P/B 1.77 0.93 1.88
Price to free cash flow 7.84 707.11 19.15
EV/EBITDA 6.89 16.75 12.87
EV/Sales 0.91 1.06 1.88
Earnings yield 6.41% (5.08%) 2.42%
Free cash flow yield 12.75% 0.14% 2.25%

Profitability

Metric LYB WLK Specialty Chemicals median
Gross margin 14.30% 10.78% 27.84%
Operating margin 8.64% (3.81%) 5.64%
Net margin 4.05% (3.87%) 4.19%
Free cash flow margin 7.96% 0.10% 3.49%
Return on equity 11.84% (4.64%) 2.34%
Return on assets 3.78% (2.27%) 0.45%
Return on invested capital 8.48% (2.22%) 3.21%

Growth

Metric LYB WLK Specialty Chemicals median
Revenue growth (TTM) 3.54% (0.37%) 6.39%
EPS growth (last fiscal year) (156.39%) (352.16%) (9.77%)
Revenue growth, 5-year CAGR 1.67% 8.28% 6.33%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric LYB WLK Specialty Chemicals median
Debt to equity 1.10 0.55 0.59
Current ratio 1.78 2.38 2.28
Net debt to EBITDA 9.67 8.12 2.03

Dividend

Metric LYB WLK Specialty Chemicals median
Dividend yield 5.57% 3.20% 1.80%
Payout ratio 0.87 — 0.40

Size

Metric LYB WLK Specialty Chemicals median
Market cap 19.92b 8.47b 2.08b

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