Livent (NYSE:LTHM) and Basf (OTCMKTS:BASFY) are both basic materials companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, valuation and profitability.
This table compares Livent and Basf’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
98.1% of Livent shares are held by institutional investors. Comparatively, 0.6% of Basf shares are held by institutional investors. 0.7% of Livent shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This is a summary of current ratings and target prices for Livent and Basf, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Livent presently has a consensus price target of $14.67, indicating a potential upside of 106.67%. Given Livent’s stronger consensus rating and higher probable upside, analysts clearly believe Livent is more favorable than Basf.
Basf pays an annual dividend of $0.64 per share and has a dividend yield of 3.4%. Livent does not pay a dividend. Basf pays out 37.0% of its earnings in the form of a dividend.
Earnings & Valuation
This table compares Livent and Basf’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Livent||$442.50 million||2.34||$126.10 million||$0.91||7.80|
|Basf||$74.02 billion||0.92||$5.56 billion||$1.73||10.75|
Basf has higher revenue and earnings than Livent. Livent is trading at a lower price-to-earnings ratio than Basf, indicating that it is currently the more affordable of the two stocks.
Livent beats Basf on 10 of the 15 factors compared between the two stocks.
Livent Corporation manufactures and sells performance lithium compounds that are used primarily in energy storage, specialty polymers, and chemical synthesis application. The company offers lithium compounds for use in applications that have specific performance requirements, including battery-grade lithium hydroxide for use in high performance lithium-ion batteries; and supplies butyllithium, which is used as a synthesizer in the production of polymers and pharmaceutical products, as well as a range of specialty lithium compounds, including high purity lithium metal, which is used in the production of lightweight materials for aerospace applications and non-rechargeable batteries. Livent Corporation was incorporated in 2018 and is headquartered in Philadelphia, Pennsylvania.
BASF SE operates as a chemical company worldwide. It operates through six segments: Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition & Care, and Agricultural Solutions. The Chemicals segment provides petrochemicals and intermediates. The Materials segment offers advanced materials and their precursors for applications and systems, such as isocyanates and polyamides, as well as inorganic basic products and specialties for plastic and plastic processing industries. The Industrial Solutions segment develops and markets ingredients and additives for industrial applications, such as polymer dispersions, pigments, resins, electronic materials, antioxidants, and admixtures. The Surface Technologies segment offers chemical solutions, which include coatings, rust protection products, catalysts, and battery materials for the automotive and chemical industries. The Nutrition & Care segment provides nutrition and care ingredients for food and feed producers, as well as pharmaceutical, cosmetics, detergent, and cleaner industries. The Agricultural Solutions segment offers crop protection products and seeds, such as fungicides, herbicides, insecticides, and biological crop production products, as well as seed treatment products. The company has a strategic collaboration agreement with Midea Group Co Ltd; and strategic partnership with Aspen Aerogels, Inc. BASF SE was founded in 1865 and is headquartered in Ludwigshafen am Rhein, Germany.
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