Head-To-Head Contrast: LyondellBasell Industries (NYSE:LYB) versus Compass Minerals International (NYSE:CMP)

LyondellBasell Industries (NYSE:LYB) and Compass Minerals International (NYSE:CMP) are both basic materials companies, but which is the better business? We will contrast the two companies based on the strength of their risk, institutional ownership, earnings, dividends, valuation, analyst recommendations and profitability.

Valuation and Earnings

This table compares LyondellBasell Industries and Compass Minerals International”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
LyondellBasell Industries	$40.30 billion	0.42	$1.37 billion	$0.77	68.72
Compass Minerals International	$1.12 billion	0.72	-$206.10 million	($2.92)	-6.57

LyondellBasell Industries has higher revenue and earnings than Compass Minerals International. Compass Minerals International is trading at a lower price-to-earnings ratio than LyondellBasell Industries, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for LyondellBasell Industries and Compass Minerals International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
LyondellBasell Industries	2	9	2	1	2.14
Compass Minerals International	1	1	1	0	2.00

LyondellBasell Industries presently has a consensus target price of $63.0769, suggesting a potential upside of 19.21%. Compass Minerals International has a consensus target price of $20.00, suggesting a potential upside of 4.22%. Given LyondellBasell Industries’ stronger consensus rating and higher probable upside, research analysts plainly believe LyondellBasell Industries is more favorable than Compass Minerals International.

Profitability

This table compares LyondellBasell Industries and Compass Minerals International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
LyondellBasell Industries	0.74%	9.35%	3.28%
Compass Minerals International	-9.87%	-16.70%	-2.77%

Institutional and Insider Ownership

71.2% of LyondellBasell Industries shares are owned by institutional investors. Comparatively, 99.8% of Compass Minerals International shares are owned by institutional investors. 0.1% of LyondellBasell Industries shares are owned by company insiders. Comparatively, 1.5% of Compass Minerals International shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Volatility & Risk

LyondellBasell Industries has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500. Comparatively, Compass Minerals International has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500.

Summary

LyondellBasell Industries beats Compass Minerals International on 11 of the 15 factors compared between the two stocks.

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.

About Compass Minerals International

Compass Minerals International, Inc., provides essential minerals in the United States, Canada, the United Kingdom, and internationally. It operates through two segments, Salt and Plant Nutrition. The Salt segment produces, markets, and sells sodium chloride and magnesium chloride, including rock salt, mechanically and solar evaporated salt, and brine and flake magnesium chloride products; and purchases potassium chloride and calcium chloride to sell as finished products or to blend with sodium chloride to produce specialty products. This segment provides products for use as a deicer for roadways, consumer, and professional use; as an ingredient in chemical production; for water treatment, human, and animal nutrition; and for various other consumer and industrial uses, as well as records management services. The Plant Nutrition segment produces sulfate of potash specialty fertilizers in various grades that are used in broadcast spreaders, direct application, and liquid fertilizer solutions under the Protassium+ brand name; turf products used by the turf and ornamental markets, as well as for blends used on golf course greens; organic products; and develops and produces a portfolio of magnesium chloride-based aerial and ground fire retardant products. This segment provides its products to distributors and retailers of crop inputs, as well as growers. The company was formerly known as Salt Holdings Corporation and changed its name to Compass Minerals International, Inc. in December 2003. Compass Minerals International, Inc. was founded in 1844 and is headquartered in Overland Park, Kansas.