PPG vs LyondellBasell
PPG and LyondellBasell are presented side by side to compare their business models, financial performance, and market context in a neutral, accessible way. This page examines strategy, operations, and market positioning without making recommendations. Educational content, not financial advice.
PPG and LyondellBasell are presented side by side to compare their business models, financial performance, and market context in a neutral, accessible way. This page examines strategy, operations, and...
Why It's Moving
Shares wobble after mixed analyst moves and steady quarterly guide — investors eye margin pressure in coatings demand shift.
- Analyst revisions: Berenberg cut its price target and trimmed expectations for PPG, lowering its target to $110 and keeping a cautious stance — a move that pressured sentiment by signaling weaker near-term upside from consensus levels.
- Earnings and guidance context: PPG’s recent quarterly metrics showed revenue roughly in line with expectations while management maintained full‑year EPS guidance, which investors read as reassurance on top‑line stability but also as evidence that any margin improvement will be gradual rather than immediate.
- Sector dynamics: Continued signs of softer demand in certain industrial and architectural coatings markets are keeping analysts focused on margin resilience and volume recovery; upgrades from other banks earlier in the earnings cycle created a divergence in views that amplified price swings this week.
Shares wobble after mixed analyst moves and steady quarterly guide — investors eye margin pressure in coatings demand shift.
- Analyst revisions: Berenberg cut its price target and trimmed expectations for PPG, lowering its target to $110 and keeping a cautious stance — a move that pressured sentiment by signaling weaker near-term upside from consensus levels.
- Earnings and guidance context: PPG’s recent quarterly metrics showed revenue roughly in line with expectations while management maintained full‑year EPS guidance, which investors read as reassurance on top‑line stability but also as evidence that any margin improvement will be gradual rather than immediate.
- Sector dynamics: Continued signs of softer demand in certain industrial and architectural coatings markets are keeping analysts focused on margin resilience and volume recovery; upgrades from other banks earlier in the earnings cycle created a divergence in views that amplified price swings this week.
Which Baskets Do They Appear In?
Chemical Sector: Berkshire's $10B Acquisition Impact
Berkshire Hathaway's potential $10 billion acquisition of Occidental's OxyChem unit signals a major investment in the industrial chemical sector. This move could create ripple effects, presenting opportunities for other chemical manufacturers who stand to gain from shifts in the market.
Published: October 1, 2025
Explore BasketWhich Baskets Do They Appear In?
Chemical Sector: Berkshire's $10B Acquisition Impact
Berkshire Hathaway's potential $10 billion acquisition of Occidental's OxyChem unit signals a major investment in the industrial chemical sector. This move could create ripple effects, presenting opportunities for other chemical manufacturers who stand to gain from shifts in the market.
Published: October 1, 2025
Explore BasketInvestment Analysis
PPG
PPG
Pros
- PPG Industries is currently trading below its fair value with a PE ratio materially lower than its fair ratio, indicating potential undervaluation.
- The company reported a 1% increase in net sales in the third quarter of 2025 with a 2% organic sales growth, showing recent revenue resilience.
- PPG maintains a solid return on equity of approximately 23.85%, reflecting effective management and profitability relative to shareholder equity.
Considerations
- PPG shares have declined about 15% year-to-date in 2025, underperforming relative to its peers amid sector challenges like raw material cost volatility.
- Recent quarterly revenue showed a slight decline of 0.9% compared to the previous year, raising concerns about near-term growth momentum.
- The dividend payout ratio is relatively high at 64.40%, which might limit reinvestment opportunities for future growth.
Pros
- LyondellBasell is the world's largest polypropylene producer, with diversified operations across the Americas, Europe, and Asia.
- The company exhibits strong profitability metrics, including a normalized return on equity of 14% and return on invested capital over 8%.
- LyondellBasell’s portfolio includes advanced polymers and refinery businesses, offering multiple growth drivers and operational integration benefits.
Considerations
- LyondellBasell's quick ratio below 1 (0.91) suggests some liquidity constraints in the short term compared to peers.
- The company faces exposure to volatile raw material and energy prices due to its refining and petrochemical feedstock reliance.
- Interest coverage ratio around 3.0 indicates moderate debt-servicing ability, which may pose risks if earnings weaken or interest rates rise.
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