Green Plains (GPRE) versus LyondellBasell Industries (LYB) Head to Head Contrast

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Green Plains (NYSE: LYB) and LyondellBasell Industries (NYSE:LYB) are both basic materials companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, analyst recommendations, valuation and risk.

Insider and Institutional Ownership

73.3% of LyondellBasell Industries shares are held by institutional investors. 5.9% of Green Plains shares are held by insiders. Comparatively, 0.1% of LyondellBasell Industries shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Dividends

Green Plains pays an annual dividend of $0.48 per share and has a dividend yield of 2.6%. LyondellBasell Industries pays an annual dividend of $4.00 per share and has a dividend yield of 3.5%. Green Plains pays out -55.8% of its earnings in the form of a dividend. LyondellBasell Industries pays out 39.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. LyondellBasell Industries has raised its dividend for 6 consecutive years. LyondellBasell Industries is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Profitability

This table compares Green Plains and LyondellBasell Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Green Plains 1.45% -3.73% -1.45%
LyondellBasell Industries 15.51% 53.77% 18.68%

Valuation & Earnings

This table compares Green Plains and LyondellBasell Industries’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Green Plains $3.60 billion 0.21 $61.06 million ($0.86) -21.10
LyondellBasell Industries $34.48 billion 1.30 $4.88 billion $10.23 11.24

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

Volatility and Risk

Green Plains has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500. Comparatively, LyondellBasell Industries has a beta of 1.09, meaning that its share price is 9% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Green Plains and LyondellBasell Industries, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Green Plains 0 1 4 0 2.80
LyondellBasell Industries 0 8 6 0 2.43

Green Plains currently has a consensus price target of $26.50, suggesting a potential upside of 46.01%. LyondellBasell Industries has a consensus price target of $119.33, suggesting a potential upside of 3.82%. Given Green Plains’ stronger consensus rating and higher possible upside, research analysts plainly believe Green Plains is more favorable than LyondellBasell Industries.

Summary

LyondellBasell Industries beats Green Plains on 13 of the 17 factors compared between the two stocks.

Green Plains Company Profile

Green Plains Inc. produces, markets, and distributes ethanol in the United States and internationally. The company operates through four segments: Ethanol Production; Agribusiness and Energy Services; Food and Ingredients; and Partnership. The Ethanol Production segment produces and sells ethanol, distiller grains, and corn oil. The Agribusiness and Energy Services segment engages in the grain procurement, handling, and storage activities; and commodity marketing business, which purchases, markets, sells, and distributes ethanol, distiller grains, and corn oil, as well as crude oil, grain, natural gas, and other commodities in various markets. This segment also provides grain drying and storage services to grain producers. The Food and Ingredients segment purchases and sells feeder cattle to meat processors; and produces and sells white distilled vinegar and various specialty vinegar, such as balsamic, red wine, white wine, cider, and other varietals primarily to the food industry participants, including branded food companies, private label food manufacturers, and companies serving the foodservice channel, as well as for retail and industrial uses. This segment also produces, trades in, and sells corn and soybean oil. The Partnership segment offers fuel storage and transportation services. As of December 31, 2017, this segment owned 39 ethanol storage facilities; 8 fuel terminal facilities; and approximately a fleet of 3,500 leased railcars. The company was formerly known as Green Plains Renewable Energy, Inc. and changed its name to Green Plains Inc. in May 2014. Green Plains Inc. was founded in 2004 and is headquartered in Omaha, Nebraska.

LyondellBasell Industries Company Profile

LyondellBasell Industries N.V. is a chemical company. The Company operates in five segments: Olefins and Polyolefins-Americas (O&P-Americas), Olefins and Polyolefins-Europe, Asia, International (O&P-EAI), Intermediates and Derivatives (I&D), Refining and Technology. The O&P-Americas segment produces and markets olefins and co-products, polyethylene and polypropylene. The O&P-EAI segment produces and markets olefins and co-products, polyethylene and polypropylene. The I&D segment produces and markets propylene oxide (PO) and its derivatives, oxyfuels and related products, and intermediate chemicals, such as styrene monomer (SM), acetyls and ethylene oxides. The primary product of the Refining segment is refined products made from sulfur crude oil and other crude oils of various types and sources available on the United States Gulf Coast. The Technology segment develops and licenses chemical and polyolefin process technologies and manufactures and sells polyolefin catalysts.

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