Westlake Chemical (NYSE: WLK) is one of 35 public companies in the “Commodity Chemicals” industry, but how does it compare to its competitors? We will compare Westlake Chemical to similar companies based on the strength of its risk, dividends, profitability, institutional ownership, valuation, earnings and analyst recommendations.

Risk & Volatility

Westlake Chemical has a beta of 1.63, meaning that its stock price is 63% more volatile than the S&P 500. Comparatively, Westlake Chemical’s competitors have a beta of 1.19, meaning that their average stock price is 19% more volatile than the S&P 500.

Insider & Institutional Ownership

32.0% of Westlake Chemical shares are owned by institutional investors. Comparatively, 69.2% of shares of all “Commodity Chemicals” companies are owned by institutional investors. 72.5% of Westlake Chemical shares are owned by company insiders. Comparatively, 8.3% of shares of all “Commodity Chemicals” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Westlake Chemical and its competitors gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Westlake Chemical $6.94 billion $1.33 billion 24.26
Westlake Chemical Competitors $4.14 billion $888.59 million 33.28

Westlake Chemical has higher revenue and earnings than its competitors. Westlake Chemical is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Westlake Chemical and its competitors, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Westlake Chemical 0 1 10 0 2.91
Westlake Chemical Competitors 104 792 1175 34 2.54

Westlake Chemical presently has a consensus price target of $86.13, suggesting a potential upside of 1.43%. As a group, “Commodity Chemicals” companies have a potential downside of 0.26%. Given Westlake Chemical’s stronger consensus rating and higher possible upside, research analysts clearly believe Westlake Chemical is more favorable than its competitors.

Profitability

This table compares Westlake Chemical and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Westlake Chemical 8.05% 16.26% 5.92%
Westlake Chemical Competitors -23.24% 24.59% 5.90%

Dividends

Westlake Chemical pays an annual dividend of $0.84 per share and has a dividend yield of 1.0%. Westlake Chemical pays out 24.0% of its earnings in the form of a dividend. As a group, “Commodity Chemicals” companies pay a dividend yield of 1.8% and pay out 48.2% of their earnings in the form of a dividend. Westlake Chemical has raised its dividend for 13 consecutive years.

Summary

Westlake Chemical beats its competitors on 10 of the 15 factors compared.

Westlake Chemical Company Profile

Westlake Chemical Corporation is a global manufacturer and marketer of basic chemicals, vinyls, polymers and building products. The Company’s products include a range of chemicals, which are fundamental to various consumer and industrial markets, including flexible and rigid packaging, automotive products, coatings, water treatment, refrigerants, residential and commercial construction, as well as other durable and non-durable goods. Its segments include Olefins and Vinyls. It manufactures ethylene (through Westlake Chemical OpCo LP (OpCo)), polyethylene, styrene and associated co-products at its manufacturing facility in Lake Charles and polyethylene at its Longview facility. The Company’s products in its Vinyls segment include polyvinyl chloride (PVC), vinyl chloride monomer (VCM), ethylene dichloride (EDC), chlor-alkali (chlorine and caustic soda) and chlorinated derivative products and, through OpCo, ethylene. It also manufactures and sells building products fabricated from PVC.

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