Westlake (NYSE:WLK – Get Free Report) and Northern Technologies International (NASDAQ:NTIC – Get Free Report) are both materials companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, earnings, profitability, risk and valuation.
Institutional and Insider Ownership
28.4% of Westlake shares are held by institutional investors. Comparatively, 32.9% of Northern Technologies International shares are held by institutional investors. 1.4% of Westlake shares are held by company insiders. Comparatively, 24.9% of Northern Technologies International shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares Westlake and Northern Technologies International”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Westlake | $11.17 billion | 0.73 | -$1.51 billion | ($3.47) | -18.31 |
| Northern Technologies International | $84.24 million | 0.86 | $20,000.00 | ($0.12) | -63.50 |
Northern Technologies International has lower revenue, but higher earnings than Westlake. Northern Technologies International is trading at a lower price-to-earnings ratio than Westlake, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Westlake and Northern Technologies International’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Westlake | -3.91% | 1.99% | 0.93% |
| Northern Technologies International | -1.26% | -0.45% | -0.33% |
Analyst Recommendations
This is a summary of recent ratings for Westlake and Northern Technologies International, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Westlake | 3 | 8 | 4 | 0 | 2.07 |
| Northern Technologies International | 1 | 1 | 0 | 0 | 1.50 |
Westlake currently has a consensus price target of $80.40, indicating a potential upside of 26.51%. Given Westlake’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Westlake is more favorable than Northern Technologies International.
Risk and Volatility
Westlake has a beta of 0.66, meaning that its stock price is 34% less volatile than the S&P 500. Comparatively, Northern Technologies International has a beta of 0.15, meaning that its stock price is 85% less volatile than the S&P 500.
Summary
Westlake beats Northern Technologies International on 8 of the 14 factors compared between the two stocks.
About Westlake
Westlake Corporation is a global manufacturer of materials and products used in construction, packaging, consumer goods, and other industries. Founded in 1986 and headquartered in Houston, Texas, the company serves customers through operations in North America, Europe, and Asia. Westlake’s Performance and Essential Materials business produces petrochemicals and materials such as polyethylene, styrene, chlor-alkali products, and PVC resins. These materials are used in applications ranging from packaging and household products to water treatment and construction.
About Northern Technologies International
Northern Technologies International Corporation develops and markets corrosion prevention products and services, along with environmentally oriented materials and products. Its offerings serve industrial and consumer markets through brands including ZERUST and Natur-Tec. Through ZERUST, the company provides corrosion-inhibiting packaging, coatings and other treatments, as well as corrosion-management services. These solutions help protect metal parts and equipment during manufacturing, storage and transportation.
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