PPG vs LyondellBasell
Global paints and coatings manufacturer with extensive distribution vs Major global producer of chemicals and polymers. Which is the better buy for your portfolio in October 2026? Plain-English answer below.
PPG manufactures specialty coatings and paints with strong brand-driven pricing power in both industrial and architectural end markets, while LyondellBasell is one of the world's largest petrochemical producers, competing on cost and scale in commodity polymer and chemical markets. Both are chemicals businesses, but PPG sells differentiation and LyondellBasell sells capacity. The PPG vs LyondellBasell comparison traces how specialty chemistry margins hold up against commodity cycle volatility and what each implies for capital allocation and dividend sustainability.
PPG manufactures specialty coatings and paints with strong brand-driven pricing power in both industrial and architectural end markets, while LyondellBasell is one of the world's largest petrochemical...
Why It’s Moving
PPG Eyes Q3 Earnings Release Amid Margin Pressures and Valuation Debate
- Q2 results showed 7% revenue growth to approximately $4.5 billion, but EPS remained flat as weakness in the high-margin Automotive Refinish segment counterbalanced gains in other areas.
- The company has confirmed its third-quarter 2026 earnings release for October 27, with a teleconference led by Chairman and CEO Tim Knavish and CFO Jamie Beggs on October 28.
- Current trading multiples indicate a deep discount, with a Price-to-Free-Cash-Flow ratio under 17 compared to a five-year average of nearly 35, implying a potential 19% long-term return despite recent market underperformance.
PPG Eyes Q3 Earnings Release Amid Margin Pressures and Valuation Debate
- Q2 results showed 7% revenue growth to approximately $4.5 billion, but EPS remained flat as weakness in the high-margin Automotive Refinish segment counterbalanced gains in other areas.
- The company has confirmed its third-quarter 2026 earnings release for October 27, with a teleconference led by Chairman and CEO Tim Knavish and CFO Jamie Beggs on October 28.
- Current trading multiples indicate a deep discount, with a Price-to-Free-Cash-Flow ratio under 17 compared to a five-year average of nearly 35, implying a potential 19% long-term return despite recent market underperformance.
Investment 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.
PPG (PPG) Next Earnings Date
PPG has not yet announced a confirmed date for its next earnings report. Based on the company's historical reporting pattern of releasing results approximately three months after the previous quarter, the upcoming report is expected in late October 2026. This release will cover PPG's financial performance for the third quarter of 2026. Investors should monitor official announcements for the precise scheduling details as they become available.
PPG (PPG) Next Earnings Date
PPG has not yet announced a confirmed date for its next earnings report. Based on the company's historical reporting pattern of releasing results approximately three months after the previous quarter, the upcoming report is expected in late October 2026. This release will cover PPG's financial performance for the third quarter of 2026. Investors should monitor official announcements for the precise scheduling details as they become available.
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