Contrasting Westlake (NYSE:WLK) & Yara International ASA (OTCMKTS:YARIY)

Yara International ASA (OTCMKTS:YARIY) and Westlake (NYSE:WLK) are both materials companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, valuation, institutional ownership, analyst recommendations, earnings, risk and dividends.

Dividends

Yara International ASA pays an annual dividend of $0.83 per share and has a dividend yield of 3.9%. Westlake pays an annual dividend of $2.13 per share and has a dividend yield of 3.1%. Yara International ASA pays out 30.0% of its earnings in the form of a dividend. Westlake pays out -22.2% 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.

Volatility and Risk

Yara International ASA has a beta of 0.61, indicating that its stock price is 39% less volatile than the S&P 500. Comparatively, Westlake has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500.

Institutional and Insider Ownership

0.0% of Yara International ASA shares are held by institutional investors. Comparatively, 28.4% of Westlake shares are held by institutional investors. 1.4% of Westlake shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Yara International ASA and Westlake, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Yara International ASA	2	4	0	2	2.25
Westlake	3	8	4	0	2.07

Westlake has a consensus price target of $81.13, indicating a potential upside of 18.95%. Given Westlake’s higher probable upside, analysts clearly believe Westlake is more favorable than Yara International ASA.

Profitability

This table compares Yara International ASA and Westlake’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Yara International ASA	8.20%	15.44%	7.92%
Westlake	-10.94%	0.93%	0.44%

Earnings & Valuation

This table compares Yara International ASA and Westlake”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Yara International ASA	$15.71 billion	0.69	$1.37 billion	$2.77	7.70
Westlake	$11.17 billion	0.78	-$1.51 billion	($9.58)	-7.12

Yara International ASA has higher revenue and earnings than Westlake. Westlake is trading at a lower price-to-earnings ratio than Yara International ASA, indicating that it is currently the more affordable of the two stocks.

Summary

Yara International ASA beats Westlake on 10 of the 18 factors compared between the two stocks.

About Yara International ASA

Yara International ASA provides crop nutrition and industrial solutions in Norway, European Union, Europe, Africa, Asia, North and Latin America, Australia, and New Zealand. The company offers ammonium- and urea-based fertilizers; compound fertilizers that contain nutrients, such as nitrogen, phosphorus, and potassium; coatings; biostimulants; organic-based fertilizers; green fertilizers are nitrate-based mineral fertilizers, as well as foliar and fertigation solutions; and nitrate, calcium nitrate, micronutrient, and fertigation and urea fertilizers. It also offers digital solutions, such as variable rate application solutions; N-Sensor, a tractor-mounted hardware; N-Tester, a handheld nitrogen measurement tool; YaraFX Insight, an agricultural API; and Atfarm, a digital toolbox for farmer. The company sells its products under YaraBela, YaraMila, YaraLiva, YaraVita, YaraRega, YaraTera, YaraSuna, and YaraVera and brands. Yara International ASA was founded in 1905 and is headquartered in Oslo, Norway.

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.