Contrasting of Westlake Chemical Corporation (WLK) and Olin Corporation (NYSE:OLN)

Westlake Chemical Corporation (NYSE:WLK) and Olin Corporation (NYSE:OLN), both competing one another are Specialty Chemicals companies. We will compare their analyst recommendations, profitability, risk, institutional ownership, dividends, earnings and valuation.

Valuation & Earnings

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Westlake Chemical Corporation 66 1.00 N/A 5.97 11.31
Olin Corporation 21 0.48 N/A 2.08 9.66

Table 1 shows the gross revenue, earnings per share (EPS) and valuation for Westlake Chemical Corporation and Olin Corporation. Olin Corporation has lower revenue and earnings than Westlake Chemical Corporation. Company that presently has a higher P/E ratio means that it is the more expensive of the two businesses. Westlake Chemical Corporation is thus presently the expensive of the two stocks because it has a higher P/E ratio.

Profitability

Table 2 represents Westlake Chemical Corporation (NYSE:WLK) and Olin Corporation (NYSE:OLN)’s return on equity, return on assets and net margins.

Net Margins Return on Equity Return on Assets
Westlake Chemical Corporation 0.00% 14% 6.6%
Olin Corporation 0.00% 12.3% 3.8%

Risk & Volatility

A 1.61 beta means Westlake Chemical Corporation’s volatility is 61.00% more than Standard & Poor’s 500’s volatility. From a competition point of view, Olin Corporation has a 1.53 beta which is 53.00% more volatile compared to Standard & Poor’s 500.

Liquidity

The current Quick Ratio of Westlake Chemical Corporation is 1.3 while its Current Ratio is 2.1. Meanwhile, Olin Corporation has a Current Ratio of 1.5 while its Quick Ratio is 0.8. Westlake Chemical Corporation is better positioned to pay off its short-term and long-term debts than Olin Corporation.

Analyst Ratings

In next table is delivered Westlake Chemical Corporation and Olin Corporation’s ratings and recommendations.

Sell Ratings Hold Ratings Buy Ratings Rating Score
Westlake Chemical Corporation 1 2 1 2.25
Olin Corporation 0 2 1 2.33

Westlake Chemical Corporation’s average price target is $70.5, while its potential upside is 6.98%. Meanwhile, Olin Corporation’s average price target is $26.67, while its potential upside is 41.64%. Based on the analysts opinion we can conclude, Olin Corporation is looking more favorable than Westlake Chemical Corporation.

Insider & Institutional Ownership

Westlake Chemical Corporation and Olin Corporation has shares held by institutional investors as follows: 29.4% and 94.2%. About 0.5% of Westlake Chemical Corporation’s share are held by insiders. Comparatively, 0.4% are Olin Corporation’s share held by insiders.

Performance

In this table we show the Weekly, Monthly, Quarterly, Half Yearly, Yearly and YTD Performance of both pretenders.

Performance (W) Performance (M) Performance (Q) Performance (HY) Performance (Y) Performance (YTD)
Westlake Chemical Corporation -2.55% -3.46% -0.35% -12.28% -35.65% 2.12%
Olin Corporation -7.81% -7.68% -4.97% -16.72% -30.43% -0.2%

For the past year Westlake Chemical Corporation has 2.12% stronger performance while Olin Corporation has -0.2% weaker performance.

Summary

Westlake Chemical Corporation beats on 11 of the 12 factors Olin Corporation.

Westlake Chemical Corporation manufactures and markets basic chemicals, vinyls, polymers, and building products. It operates through two segments, Olefins and Vinyls. The Olefins segment offers ethylene, polyethylene, styrene monomer, and various ethylene co-products, as well as sells propylene, crude butadiene, pyrolysis gasoline, and hydrogen. The Vinyls segment provides specialty and commodity PVC, VCM, EDC, chlorine, caustic soda, chlorinated derivative, and ethylene products. This segment also manufactures and sells products fabricated from PVC, including pipe, fittings, profiles, trims, mouldings, fence and decking products, window and door components, and film and sheet products. The companyÂ’s products are used in various consumer and industrial markets, including flexible and rigid packaging, automotive products, coatings, and residential and commercial construction, as well as other durable and non-durable goods. Westlake Chemical Corporation also offers its products to a range of customers, including chemical processors, plastics fabricators, small construction contractors, municipalities, and supply warehouses primarily in North America and Europe. The company was founded in 1985 and is headquartered in Houston, Texas. Westlake Chemical Corporation is a subsidiary of TTWF LP.

Olin Corporation manufactures and distributes chemical products in the United States and internationally. It operates through three segments: Chlor Alkali Products and Vinyls; Epoxy; and Winchester. The Chlor Alkali Products and Vinyls segment offers chlorine and caustic soda, ethylene dichloride and vinyl chloride monomers, methyl chloride, methylene chloride, chloroform, carbon tetrachloride, perchloroethylene, trichloroethylene and vinylidene chloride, hydrochloric acid, hydrogen, bleach products, and potassium hydroxide. The Epoxy segment provides allyl chloride and epichlorohydrin for use in resins and other plastic materials, water purification, and pesticides, as well as for the manufacturers of polymers; liquid epoxy resins that are used in adhesives, paints and coatings, composites, and flooring; and converted epoxy resins for use in electrical laminates, paints and coatings, wind blades, electronics, and construction, as well as offers additives. The Winchester segment offers sporting ammunition, reloading components, small caliber military ammunition and components, and industrial cartridges. The company markets its products through its sales force, as well as directly to various industrial customers, mass merchants, retailers, wholesalers, other distributors, and the U.S. Government and its prime contractors. Olin Corporation was founded in 1892 and is headquartered in Clayton, Missouri.

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