Analyzing Croda International (OTCMKTS:COIHY) & Westlake Chemical Partners (NYSE:WLKP)

Westlake Chemical Partners (NYSE:WLKP) and Croda International (OTCMKTS:COIHY) are both basic materials companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, profitability, earnings, valuation, analyst recommendations, risk and institutional ownership.

Dividends

Westlake Chemical Partners pays an annual dividend of $1.88 per share and has a dividend yield of 8.3%. Croda International pays an annual dividend of $0.70 per share and has a dividend yield of 3.5%. Westlake Chemical Partners pays out 114.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Westlake Chemical Partners	4.69%	7.15%	4.57%
Croda International	N/A	N/A	N/A

Volatility & Risk

Westlake Chemical Partners has a beta of 0.52, suggesting that its stock price is 48% less volatile than the S&P 500. Comparatively, Croda International has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500.

Insider and Institutional Ownership

78.3% of Westlake Chemical Partners shares are held by institutional investors. Comparatively, 0.1% of Croda International shares are held by institutional investors. 1.1% of Westlake Chemical Partners shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Westlake Chemical Partners and Croda International”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Westlake Chemical Partners	$1.23 billion	0.65	$48.70 million	$1.64	13.85
Croda International	$2.24 billion	2.47	$81.76 million	N/A	N/A

Croda International has higher revenue and earnings than Westlake Chemical Partners.

Analyst Ratings

This is a summary of current recommendations and price targets for Westlake Chemical Partners and Croda International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Westlake Chemical Partners	0	1	1	0	2.50
Croda International	0	3	0	1	2.50

Summary

Westlake Chemical Partners beats Croda International on 7 of the 13 factors compared between the two stocks.

About Westlake Chemical Partners

Westlake Chemical Partners LP acquires, develops, and operates ethylene production facilities and related assets in the United States. The company’s ethylene production facilities primarily convert ethane into ethylene. It also sells ethylene co-products, such as propylene, crude butadiene, pyrolysis gasoline, and hydrogen directly to third parties on either a spot or contract basis. Westlake Chemical Partners GP LLC serves as the general partner of the company. Westlake Chemical Partners LP was founded in 1991 and is headquartered in Houston, Texas.

About Croda International

Croda International Plc engages in the consumer care, life science, and industrial specialty businesses in in Europe, the Middle East, Africa, North America, Asia, and Latin America. The company offers speciality and active ingredients across beauty care, beauty actives, and home care products, as well as fragrances and flavours. It also provides biologics drug delivery, adjuvant systems, small molecule, protein, and nucleic acid delivery platforms, as well as purity materials for pharmaceutical formulations. In addition, the company offers crop protection and seed enhancement related solutions. Croda International Plc was incorporated in 1925 and is headquartered in Goole, the United Kingdom.