Head to Head Analysis: Victrex (OTCMKTS:VTXPF) versus Westlake (NYSE:WLK)

Victrex (OTCMKTS:VTXPF) and Westlake (NYSE:WLK) are both basic materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, analyst recommendations, profitability, institutional ownership, risk, dividends and earnings.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Victrex and Westlake, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Victrex	0	1	2	0	2.67
Westlake	0	6	7	0	2.54

Westlake has a consensus price target of $90.54, suggesting a potential upside of 25.70%. Given Westlake’s higher probable upside, analysts plainly believe Westlake is more favorable than Victrex.

Profitability

This table compares Victrex and Westlake’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Victrex	N/A	N/A	N/A
Westlake	3.23%	4.19%	2.21%

Insider & Institutional Ownership

0.8% of Victrex shares are held by institutional investors. Comparatively, 28.4% of Westlake shares are held by institutional investors. 1.3% of Westlake shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Victrex and Westlake”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Victrex	$369.00 million	2.71	$21.81 million	N/A	N/A
Westlake	$12.14 billion	0.76	$602.00 million	$2.98	24.17

Westlake has higher revenue and earnings than Victrex.

Risk and Volatility

Victrex has a beta of 0.65, indicating that its share price is 35% less volatile than the S&P 500. Comparatively, Westlake has a beta of 0.91, indicating that its share price is 9% less volatile than the S&P 500.

Summary

Westlake beats Victrex on 10 of the 12 factors compared between the two stocks.

About Victrex

Victrex plc, through its subsidiaries, engages in the manufacture and sale of polymer solutions worldwide. The company operates through two segments, Sustainable Solutions and Medical. It develops PEEK and PAEK based polymer solutions, and semi-finished and finished parts. The company also provides specialist solutions for medical device manufacturers; sells thermoplastic polymers; sustainable solutions for energy and industrial, VAR, automotive, aerospace, and electronics markets; and engages in trading activities. It serves automotive, aerospace, energy and industrial, electronics, and medical markets. Victrex plc was incorporated in 1993 and is headquartered in Thornton-Cleveleys, the United Kingdom.

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.