LyondellBasell Preferred Over Dow for Materials Exposure in 2026

Industry

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Summary · why it matters

LyondellBasell Industries is the better buy among chemical stocks for 2026, according to a Motley Fool analysis comparing it with Dow. Dow posted a fiscal 2025 net loss of $2.6 billion on revenue of $40 billion, while LyondellBasell reported a net loss of $743 million on revenue of $30.2 billion. LyondellBasell trades at a forward price-to-earnings ratio of 7.5 times versus Dow's 10.3 times, and both carry a price-to-sales ratio of 0.6 times. The analysis cites supply disruptions from the Iran conflict as a catalyst that could lift Dow's 2026 sales to $44.7 billion and LyondellBasell's to $34.5 billion, with projected net income of $1.8 billion and $3.25 billion respectively. LyondellBasell's cheaper valuation makes it the preferred choice for investors seeking materials exposure.