Westlake Chemical Corporation (NYSE: WLK) is one of 33 public companies in the “Commodity Chemicals” industry, but how does it compare to its peers? We will compare Westlake Chemical Corporation to similar companies based on the strength of its institutional ownership, valuation, profitability, analyst recommendations, risk, dividends and earnings.
Westlake Chemical Corporation pays an annual dividend of $0.84 per share and has a dividend yield of 0.9%. Westlake Chemical Corporation pays out 18.2% 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 51.5% of their earnings in the form of a dividend. Westlake Chemical Corporation has increased its dividend for 13 consecutive years.
This table compares Westlake Chemical Corporation and its peers’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Westlake Chemical Corporation||7.74%||15.59%||5.95%|
|Westlake Chemical Corporation Competitors||-29.50%||24.34%||5.63%|
This is a summary of recent ratings and price targets for Westlake Chemical Corporation and its peers, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Westlake Chemical Corporation||0||2||10||0||2.83|
|Westlake Chemical Corporation Competitors||106||829||1222||35||2.54|
Westlake Chemical Corporation currently has a consensus price target of $97.00, indicating a potential upside of 2.86%. As a group, “Commodity Chemicals” companies have a potential upside of 3.82%. Given Westlake Chemical Corporation’s peers higher probable upside, analysts plainly believe Westlake Chemical Corporation has less favorable growth aspects than its peers.
Volatility and Risk
Westlake Chemical Corporation has a beta of 1.67, meaning that its stock price is 67% more volatile than the S&P 500. Comparatively, Westlake Chemical Corporation’s peers have a beta of 1.03, meaning that their average stock price is 3% more volatile than the S&P 500.
Insider and Institutional Ownership
29.5% of Westlake Chemical Corporation shares are held by institutional investors. Comparatively, 69.8% of shares of all “Commodity Chemicals” companies are held by institutional investors. 72.5% of Westlake Chemical Corporation shares are held by insiders. Comparatively, 7.8% of shares of all “Commodity Chemicals” companies are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares Westlake Chemical Corporation and its peers revenue, earnings per share and valuation.
|Gross Revenue||NetIncome||Price/Earnings Ratio|
|Westlake Chemical Corporation||$5.08 billion||$398.85 million||20.46|
|Westlake Chemical Corporation Competitors||$4.01 billion||$340.26 million||118.69|
Westlake Chemical Corporation has higher revenue and earnings than its peers. Westlake Chemical Corporation is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.
Westlake Chemical Corporation beats its peers on 9 of the 15 factors compared.
About Westlake Chemical Corporation
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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