Head-To-Head Review: Taminco Corp (TAM) versus Westlake Chemical Partners (WLKP)
Taminco Corp (NYSE: TAM) and Westlake Chemical Partners (NYSE:WLKP) are both small-cap basic materials companies, but which is the better business? We will contrast the two companies based on the strength of their analyst recommendations, risk, dividends, profitability, earnings, valuation and institutional ownership.
This is a summary of recent ratings for Taminco Corp and Westlake Chemical Partners, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Westlake Chemical Partners||0||0||2||0||3.00|
Westlake Chemical Partners has a consensus target price of $30.00, suggesting a potential upside of 38.25%. Given Westlake Chemical Partners’ higher probable upside, analysts plainly believe Westlake Chemical Partners is more favorable than Taminco Corp.
This table compares Taminco Corp and Westlake Chemical Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Westlake Chemical Partners||3.80%||4.73%||2.86%|
Insider and Institutional Ownership
46.4% of Westlake Chemical Partners shares are held by institutional investors. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Westlake Chemical Partners pays an annual dividend of $1.50 per share and has a dividend yield of 6.9%. Taminco Corp does not pay a dividend. Westlake Chemical Partners pays out 95.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Taminco Corp has raised its dividend for 2 consecutive years.
Valuation & Earnings
This table compares Taminco Corp and Westlake Chemical Partners’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Westlake Chemical Partners||$986.74 million||0.60||$40.94 million||$1.57||13.82|
Westlake Chemical Partners has higher revenue and earnings than Taminco Corp. Westlake Chemical Partners is trading at a lower price-to-earnings ratio than Taminco Corp, indicating that it is currently the more affordable of the two stocks.
Westlake Chemical Partners beats Taminco Corp on 9 of the 11 factors compared between the two stocks.
Taminco Corp Company Profile
Taminco Corp is a producer of alkylamines and alkylamine derivatives. The Company’s products are used by its customers in the manufacturing of everyday products primarily for the agriculture, water treatment, personal and home care, animal nutrition and oil and gas end-markets. It operates in 19 countries with seven production facilities and, as of December 31, 2012, had an installed production capacity of 1,272 thousand tons. The Company has three business segments: Functional Amines, Specialty Amines, and Crop Protection. In March 2014, the Company announced that it completed the acquisition of the formic acid business of Kemira Oyj. Its main shareholder is Eastman Chemical Company.
Westlake Chemical Partners Company Profile
Westlake Chemical Partners LP is a limited partnership formed by Westlake Chemical Corporation (Westlake). The Company operates, acquires and develops ethylene production facilities and other assets. Its business and operations are conducted through Westlake Chemical OpCo LP (OpCo). OpCo sells ethylene to Westlake and others, as well as sells co-products of ethylene production, including propylene, crude butadiene, pyrolysis gasoline and hydrogen. As of December 31, 2016, OpCo’s assets included three ethylene production facilities, which primarily convert ethane into ethylene, and a 200-mile ethylene pipeline. As of December 31, 2016, OpCo owned two ethylene production facilities at Westlake’s Lake Charles, Louisiana site (Petro 1 and Petro 2, collectively Lake Charles Olefins), and one ethylene production facility at Westlake’s Calvert City, Kentucky site (Calvert City Olefins), with an annual capacity of approximately 630 million pounds.
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