Head-To-Head Analysis: Westlake (NYSE:WLK) and Neo Performance Materials (OTCMKTS:NOPMF)

Westlake (NYSE:WLK) and Neo Performance Materials (OTCMKTS:NOPMF) are both materials companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, dividends and analyst recommendations.

Valuation and Earnings

This table compares Westlake and Neo Performance Materials”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Westlake	$11.29 billion	0.70	-$1.51 billion	($9.58)	-6.45
Neo Performance Materials	$478.79 million	1.87	-$9.98 million	($0.01)	-1,950.00

Neo Performance Materials has lower revenue, but higher earnings than Westlake. Neo Performance Materials is trading at a lower price-to-earnings ratio than Westlake, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

28.4% of Westlake shares are owned by institutional investors. 1.4% of Westlake shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Westlake and Neo Performance Materials’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Westlake	-10.94%	0.93%	0.44%
Neo Performance Materials	0.26%	11.52%	6.47%

Analyst Recommendations

This is a summary of current recommendations for Westlake and Neo Performance Materials, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Westlake	2	10	4	0	2.12
Neo Performance Materials	0	1	2	1	3.00

Westlake presently has a consensus price target of $85.27, indicating a potential upside of 37.95%. Given Westlake’s higher possible upside, research analysts plainly believe Westlake is more favorable than Neo Performance Materials.

Dividends

Westlake pays an annual dividend of $2.13 per share and has a dividend yield of 3.4%. Neo Performance Materials pays an annual dividend of $0.28 per share and has a dividend yield of 1.4%. Westlake pays out -22.2% of its earnings in the form of a dividend. Neo Performance Materials pays out -2,800.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Westlake has raised its dividend for 21 consecutive years. Westlake is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Neo Performance Materials beats Westlake on 9 of the 17 factors compared between the two stocks.

About Westlake

Westlake Corporation engages in the manufacture and marketing of performance and essential materials, and housing and infrastructure products in the United States, Canada, Germany, China, Mexico, Brazil, France, Italy, Taiwan, and internationally. The company operates through two segments: Performance and Essential Materials and Housing and Infrastructure Products. The Performance and Essential Materials segment offers ethylene, polyethylene, styrene, chlorinated derivative products, ethylene dichloride, vinyl chloride monomer, polyvinyl chloride (PVC), epoxy specialty resins, and base epoxy resins and intermediaries, as well as chlor-alkali, such as chlorine and caustic soda. The Housing and Infrastructure Products segment provides residential PVC sidings; PVC trim and mouldings; architectural stone veneers; windows; PVC decking; PVC films for various inflatables, wallcovering, and tape and roofing applications; polymer composite and cement roof tiles; PVC pipes and fittings for various water, sewer, electrical, and industrial applications; PVC compounds used in various housing, medical, and automobile products; and consumer and commercial products, such as landscape edging; industrial, home, and office matting; marine dock edging; and masonry joint controls. It offers its products to chemical processors, plastics fabricators, small construction contractors, municipalities, and supply warehouses for use in various consumer and industrial markets, including residential construction, flexible and rigid packaging, automotive products, healthcare products, water treatment, wind turbines, and coatings, as well as other durable and non-durable goods. The company was formerly known as Westlake Chemical Corporation and changed its name to Westlake Corporation in February 2022. Westlake Corporation was founded in 1986 and is headquartered in Houston, Texas. Westlake Corporation operates as a subsidiary of TTWF LP.

About Neo Performance Materials

Neo Performance Materials Inc. engages in the manufacture and sale of rare earth, magnetic powders, magnets, and rare metal-based functional materials in Canada and internationally. The company operates in three segments: Magnequench, Chemicals and Oxides, and Rare Metals. The Magnequench segment produces magnetic powders that are used in bonded and hot deformed fully dense neodymium-iron-boron magnets; and bonded magnets. Its powders are used in the production of bonded permanent magnets that are components in automotive motors, pumps, micro motors, traction motors, sensors, and other applications. The Chemicals and Oxides segments manufactures and distributes a range of industrial materials for use in auto catalysts, consumer electronics, petroleum refining, hybrid and electric vehicles, and municipal and industrial wastewater treatment applications. The Rare Metals segment sources, produces, reclaims, refines, and markets high-temperature metals that include tantalum, niobium, hafnium, and rhenium; and electronic metals, such as gallium and indium for jet engines, medical imaging, wireless technologies, and LED lightings, as well as flat panel displays, solar, steel additives, batteries, and electronic applications. The company was founded in 1994 and is headquartered in Toronto, Canada.