Tantech (NASDAQ:TANH) and Westlake Chemical Partners (NYSE:WLKP) are both small-cap basic materials companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, profitability, risk, earnings, institutional ownership, analyst recommendations and dividends.

Insider and Institutional Ownership

7.0% of Tantech shares are owned by institutional investors. Comparatively, 45.9% of Westlake Chemical Partners shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Tantech and Westlake Chemical Partners’ revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Tantech $43.08 million 1.10 $3.76 million N/A N/A
Westlake Chemical Partners $1.17 billion 0.64 $48.67 million $1.72 13.48

Westlake Chemical Partners has higher revenue and earnings than Tantech.

Profitability

This table compares Tantech and Westlake Chemical Partners’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Tantech N/A N/A N/A
Westlake Chemical Partners 4.21% 5.45% 3.54%

Dividends

Westlake Chemical Partners pays an annual dividend of $1.68 per share and has a dividend yield of 7.2%. Tantech does not pay a dividend. Westlake Chemical Partners pays out 97.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Westlake Chemical Partners has raised its dividend for 3 consecutive years.

Volatility and Risk

Tantech has a beta of -1.87, meaning that its stock price is 287% less volatile than the S&P 500. Comparatively, Westlake Chemical Partners has a beta of 1.05, meaning that its stock price is 5% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and target prices for Tantech and Westlake Chemical Partners, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Tantech 0 0 0 0 N/A
Westlake Chemical Partners 0 4 3 0 2.43

Westlake Chemical Partners has a consensus price target of $26.60, indicating a potential upside of 14.75%. Given Westlake Chemical Partners’ higher possible upside, analysts clearly believe Westlake Chemical Partners is more favorable than Tantech.

Summary

Westlake Chemical Partners beats Tantech on 11 of the 13 factors compared between the two stocks.

About Tantech

Tantech Holdings Ltd. develops and manufactures bamboo-based charcoal products in the People's Republic of China and internationally. The company operates through three segments: Consumer Products, Trading, and Electric Vehicle. It produces pressed and formed charcoal briquettes for use in grills, incense burners, and other applications under the Algold brand. The company also offers Charcoal Doctor branded products, such as air purifiers and humidifiers, automotive accessories for air purification, underfloor humidity control products, pillows and mattresses, wardrobe deodorizers, mouse pads and wrist mats, refrigerator deodorants, charcoal toilet cleaner disks, liquid charcoal cleaners, shoe insoles, and decorative charcoal gifts. In addition, it provides bamboo vinegar, a liquid byproduct that is used in disinfectants, detergents, lotions, specialized soaps, toilet cleaners, and fertilizers, as well as in various agricultural applications. Further, the company develops, manufactures, and sells electric buses and specialty electric vehicles, such as electric logistics cars, brushless cleaning cars, electric cleaning cars, special emergency vehicles, and funeral cars; and solar cells, lithium-ion batteries, auto parts, and electric control systems. The company sells its products directly or indirectly through distributors for industrial energy applications; and household cooking, heating, purification, agricultural, and cleaning uses. It also exports its bamboo vinegar, bamboo charcoal and purification products. Tantech Holdings Ltd. was founded in 2001 and is headquartered in Lishui, the People's Republic of China.

About Westlake Chemical Partners

Westlake Chemical Partners LP operates, acquires, and develops ethylene production facilities and related assets in the United States. The company operates ethylene production facilities, which primarily convert ethane into ethylene. It also sells ethylene co-products, including propylene, crude butadiene, pyrolysis gasoline, and hydrogen directly to third parties on a spot or contract basis. Westlake Chemical Partners GP LLC serves as the general partner of the company. The company was founded in 2014 and is headquartered in Houston, Texas.

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