Braskem vs LyondellBasell Industries Which Is More Favorable?

Braskem and LyondellBasell Industries are two major players in the petrochemical industry, with both companies operating globally and offering a wide range of chemical and plastic products. Investors often compare the performance of their stocks due to their market dominance and rivalry within the industry. Braskem, based in Brazil, is known for its significant presence in the Latin American market, while LyondellBasell, based in the United States, has a strong foothold in North America and Europe. Both companies have experienced fluctuations in their stock prices due to market trends, industry regulations, and economic factors, making them popular choices for investors seeking exposure to the petrochemical sector.

Braskem or LyondellBasell Industries?

When comparing Braskem and LyondellBasell Industries, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Braskem and LyondellBasell Industries.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Braskem has a dividend yield of -%, while LyondellBasell Industries has a dividend yield of 7.67%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Braskem reports a 5-year dividend growth of 0.00% year and a payout ratio of -0.10%. On the other hand, LyondellBasell Industries reports a 5-year dividend growth of 4.31% year and a payout ratio of 77.69%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Braskem P/E ratio at -2.76 and LyondellBasell Industries's P/E ratio at 12.74. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Braskem P/B ratio is 294.25 while LyondellBasell Industries's P/B ratio is 2.02.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Braskem has seen a 5-year revenue growth of -0.39%, while LyondellBasell Industries's is 0.26%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Braskem's ROE at -297.88% and LyondellBasell Industries's ROE at 16.38%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $5.44 for Braskem and $84.70 for LyondellBasell Industries. Over the past year, Braskem's prices ranged from $5.28 to $10.98, with a yearly change of 107.95%. LyondellBasell Industries's prices fluctuated between $83.36 and $107.02, with a yearly change of 28.38%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.