Critical Contrast: Enzymotec (ENZY) vs. Westlake Chemical (WLK)
Enzymotec (NASDAQ: ENZY) and Westlake Chemical (NYSE:WLK) are both basic materials companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, analyst recommendations, profitability, valuation, earnings, risk and institutional ownership.
This is a summary of recent recommendations and price targets for Enzymotec and Westlake Chemical, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
This table compares Enzymotec and Westlake Chemical’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
15.7% of Enzymotec shares are held by institutional investors. Comparatively, 30.4% of Westlake Chemical shares are held by institutional investors. 71.7% of Westlake Chemical shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Earnings and Valuation
This table compares Enzymotec and Westlake Chemical’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Enzymotec||$47.70 million||5.80||-$2.92 million||($0.27)||-43.70|
|Westlake Chemical||$5.08 billion||2.56||$398.85 million||$4.60||21.89|
Westlake Chemical has higher revenue and earnings than Enzymotec. Enzymotec is trading at a lower price-to-earnings ratio than Westlake Chemical, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Enzymotec has a beta of 1.22, meaning that its stock price is 22% more volatile than the S&P 500. Comparatively, Westlake Chemical has a beta of 1.71, meaning that its stock price is 71% more volatile than the S&P 500.
Westlake Chemical pays an annual dividend of $0.84 per share and has a dividend yield of 0.8%. Enzymotec does not pay a dividend. Westlake Chemical pays out 18.3% of its earnings in the form of a dividend. Enzymotec has raised its dividend for 13 consecutive years.
Westlake Chemical beats Enzymotec on 13 of the 16 factors compared between the two stocks.
Enzymotec Ltd. is a nutritional ingredients and medical foods company. The Company’s technologies, research expertise and clinical validation process enables it to develop solutions across a range of products. The Company operates in two segments: Nutrition segment and VAYA Pharma segment. Both of the Company’s segments offer a range of products that leverage its lipid-related offerings. Its product suite addresses the entire human life-cycle, from infancy to old age, and comprises ingredients in products ranging from infant formula to nutritional supplements, as well as branded medical foods, sold only under a doctor’s supervision. It markets its product portfolio to established global consumer companies and physicians and target large and growing consumer health and wellness markets. The Company’s clinically-validated products include bio-functional lipid-based compounds designed to address dietary needs, medical disorders and common diseases.
About Westlake Chemical
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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