Head to Head Survey: Golar LNG (NASDAQ:GLNG) versus Braskem (NYSE:BAK)

Golar LNG (NASDAQ:GLNG) and Braskem (NYSE:BAK) are both energy companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, dividends, earnings, risk, institutional ownership, profitability and analyst recommendations.

Analyst Ratings

This is a summary of recent ratings and target prices for Golar LNG and Braskem, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Golar LNG	0	3	3	3	3.00
Braskem	1	4	0	0	1.80

Golar LNG presently has a consensus price target of $50.38, indicating a potential upside of 28.18%. Braskem has a consensus price target of $4.40, indicating a potential upside of 77.78%. Given Braskem’s higher possible upside, analysts clearly believe Braskem is more favorable than Golar LNG.

Profitability

This table compares Golar LNG and Braskem’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Golar LNG	-2.83%	6.36%	3.44%
Braskem	-7.36%	N/A	-0.30%

Insider and Institutional Ownership

92.2% of Golar LNG shares are held by institutional investors. 0.0% of Golar LNG shares are held by insiders. Comparatively, 0.0% of Braskem shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Golar LNG and Braskem”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Golar LNG	$260.37 million	15.78	$50.84 million	($0.07)	-561.43
Braskem	$14.36 billion	0.07	-$2.10 billion	($2.53)	-0.98

Golar LNG has higher earnings, but lower revenue than Braskem. Golar LNG is trading at a lower price-to-earnings ratio than Braskem, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Golar LNG has a beta of 0.22, indicating that its share price is 78% less volatile than the S&P 500. Comparatively, Braskem has a beta of 1.76, indicating that its share price is 76% more volatile than the S&P 500.

Summary

Golar LNG beats Braskem on 11 of the 15 factors compared between the two stocks.

About Golar LNG

Golar LNG Limited designs, converts, owns, and operates marine infrastructure for the liquefaction of natural gas. The company operates through three segments: FLNG, Corporate and Other, and Shipping. It engages in the regasification, storage, and offloading of liquefied natural gas (LNG); operation of floating liquefaction natural gas (FLNG) vessels or projects; transportation of LNG carriers; and vessel management activities. Golar LNG Limited was founded in 1946 and is headquartered in Hamilton, Bermuda.

About Braskem

Braskem S.A., together with its subsidiaries, produces and sells thermoplastic resins. The company operates through three segments: Brazil, United States and Europe, and Mexico. The Brazil segment produces and sells olefins, including ethylene, polymer and chemical grade propylene, butadiene, and butene-1; benzene, toluene, and xylenes products; fuels, such as automotive gasoline, liquefied petroleum gas, ethyl tertiary-butyl ether, and methyl tertiary-butyl ether; intermediates, such as cumene; aliphatics, aromatics, and hydrogenated solvents; and specialties comprising isoprene, dicyclopentadiene, piperylene, nonene, tetramer, polyisobutylene, and hydrocarbon resins. This segment also produces and sells polyethylene (PE) and polypropylene (PP); supplies electricity and other inputs to second-generation producers; produces and sells of PE, including the production of green PE from renewable resources; and produces and sells polyvinyl chloride and caustic soda. The United States and Europe segment produces and sells PP in the United States and Germany. The Mexico segment produces and sells ethylene, high-density PE, and low-density PE in Mexico. It also manufactures, sells, imports, and exports chemicals, petrochemicals, and fules; produces, supplies, and sells utilities, such as steam, water, compressed air, and industrial gases; and provides industrial services. The company was formerly known as Copene Petroquímica do Nordeste S.A. and changed its name to Braskem S.A. in 2002. Braskem S.A. was founded in 1972 and is headquartered in São Paulo, Brazil.