Hawkins (NASDAQ:HWKN – Get Free Report) and Westlake Chemical Partners (NYSE:WLKP – Get Free Report) are both materials companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, institutional ownership, dividends, valuation, earnings, profitability and analyst recommendations.
Dividends
Hawkins pays an annual dividend of $0.80 per share and has a dividend yield of 0.5%. Westlake Chemical Partners pays an annual dividend of $1.89 per share and has a dividend yield of 8.7%. Hawkins pays out 19.4% of its earnings in the form of a dividend. Westlake Chemical Partners pays out 113.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Hawkins has raised its dividend for 20 consecutive years.
Volatility and Risk
Hawkins has a beta of 0.72, suggesting that its stock price is 28% less volatile than the S&P 500. Comparatively, Westlake Chemical Partners has a beta of 0.51, suggesting that its stock price is 49% less volatile than the S&P 500.
Earnings & Valuation
This table compares Hawkins and Westlake Chemical Partners”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Hawkins | $1.08 billion | 2.88 | $81.55 million | $4.12 | 36.50 |
| Westlake Chemical Partners | $1.17 billion | 0.66 | $48.70 million | $1.67 | 12.99 |
Hawkins has higher earnings, but lower revenue than Westlake Chemical Partners. Westlake Chemical Partners is trading at a lower price-to-earnings ratio than Hawkins, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
69.7% of Hawkins shares are owned by institutional investors. Comparatively, 78.3% of Westlake Chemical Partners shares are owned by institutional investors. 3.7% of Hawkins shares are owned by company insiders. Comparatively, 1.1% of Westlake Chemical Partners shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares Hawkins and Westlake Chemical Partners’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Hawkins | 7.53% | 15.97% | 8.68% |
| Westlake Chemical Partners | 4.77% | 7.55% | 4.80% |
Analyst Ratings
This is a breakdown of current ratings for Hawkins and Westlake Chemical Partners, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Hawkins | 0 | 3 | 1 | 0 | 2.25 |
| Westlake Chemical Partners | 0 | 1 | 1 | 0 | 2.50 |
Hawkins presently has a consensus price target of $178.50, suggesting a potential upside of 18.71%. Westlake Chemical Partners has a consensus price target of $26.00, suggesting a potential upside of 19.90%. Given Westlake Chemical Partners’ stronger consensus rating and higher probable upside, analysts plainly believe Westlake Chemical Partners is more favorable than Hawkins.
Summary
Hawkins beats Westlake Chemical Partners on 11 of the 16 factors compared between the two stocks.
About Hawkins
Hawkins, Inc. is a specialty chemical and ingredient company founded in 1938. It supplies products and services to customers in water treatment, industrial markets, and health and nutrition. Its water treatment business serves municipal and industrial customers with chemicals and related services for water and wastewater treatment. The industrial business supplies chemicals and services to manufacturers and other commercial customers, while the health and nutrition business provides ingredients used in food, beverage, and other products.
About Westlake Chemical Partners
Westlake Chemical Partners LP is a master limited partnership formed in 2014 to own and operate ethylene production facilities and related assets. Its operations are conducted through Westlake Chemical OpCo LP, in which the partnership holds an interest. The partnership’s assets include ethylene production facilities in Lake Charles, Louisiana, and Calvert City, Kentucky, as well as related pipeline and storage infrastructure. Ethylene is a key chemical building block used to make products such as polyethylene and other plastics.
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