Westlake Chemical Partners (NYSE: WLKP) is one of 34 public companies in the “Commodity Chemicals” industry, but how does it weigh in compared to its rivals? We will compare Westlake Chemical Partners to similar businesses based on the strength of its earnings, dividends, analyst recommendations, institutional ownership, risk, profitability and valuation.
Westlake Chemical Partners pays an annual dividend of $1.46 per share and has a dividend yield of 6.4%. Westlake Chemical Partners pays out 102.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. As a group, “Commodity Chemicals” companies pay a dividend yield of 1.8% and pay out 63.1% of their earnings in the form of a dividend. Westlake Chemical Partners has raised its dividend for 2 consecutive years.
This table compares Westlake Chemical Partners and its rivals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Westlake Chemical Partners||3.60%||4.34%||2.54%|
|Westlake Chemical Partners Competitors||-29.90%||24.09%||5.27%|
Volatility & Risk
Westlake Chemical Partners has a beta of 1.21, meaning that its stock price is 21% more volatile than the S&P 500. Comparatively, Westlake Chemical Partners’ rivals have a beta of 1.17, meaning that their average stock price is 17% more volatile than the S&P 500.
This is a breakdown of recent ratings and recommmendations for Westlake Chemical Partners and its rivals, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Westlake Chemical Partners||0||0||2||0||3.00|
|Westlake Chemical Partners Competitors||103||769||1150||32||2.54|
Westlake Chemical Partners presently has a consensus target price of $30.00, indicating a potential upside of 31.29%. As a group, “Commodity Chemicals” companies have a potential downside of 1.38%. Given Westlake Chemical Partners’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Westlake Chemical Partners is more favorable than its rivals.
Insider & Institutional Ownership
38.9% of Westlake Chemical Partners shares are owned by institutional investors. Comparatively, 69.0% of shares of all “Commodity Chemicals” companies are owned by institutional investors. 8.3% of shares of all “Commodity Chemicals” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Valuation and Earnings
This table compares Westlake Chemical Partners and its rivals gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||EBITDA||Price/Earnings Ratio|
|Westlake Chemical Partners||$1.09 billion||$456.12 million||16.09|
|Westlake Chemical Partners Competitors||$4.15 billion||$892.82 million||33.65|
Westlake Chemical Partners’ rivals have higher revenue and earnings than Westlake Chemical Partners. Westlake Chemical Partners is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.
Westlake Chemical Partners rivals beat Westlake Chemical Partners on 9 of the 15 factors compared.
About Westlake Chemical Partners
Westlake Chemical Partners LP is a limited partnership formed by Westlake Chemical Corporation (Westlake). The Company operates, acquires and develops ethylene production facilities and other assets. Its business and operations are conducted through Westlake Chemical OpCo LP (OpCo). OpCo sells ethylene to Westlake and others, as well as sells co-products of ethylene production, including propylene, crude butadiene, pyrolysis gasoline and hydrogen. As of December 31, 2016, OpCo’s assets included three ethylene production facilities, which primarily convert ethane into ethylene, and a 200-mile ethylene pipeline. As of December 31, 2016, OpCo owned two ethylene production facilities at Westlake’s Lake Charles, Louisiana site (Petro 1 and Petro 2, collectively Lake Charles Olefins), and one ethylene production facility at Westlake’s Calvert City, Kentucky site (Calvert City Olefins), with an annual capacity of approximately 630 million pounds.
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