Head to Head Survey: Westlake Chemical Partners (NYSE:WLKP) vs. Solstice Advanced Mat (NASDAQ:SOLS)

Westlake Chemical Partners (NYSE:WLKP) and Solstice Advanced Mat (NASDAQ:SOLS) are both materials companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, dividends, earnings, risk, analyst recommendations, valuation and institutional ownership.

Dividends

Westlake Chemical Partners pays an annual dividend of $1.89 per share and has a dividend yield of 8.7%. Solstice Advanced Mat pays an annual dividend of $0.30 per share and has a dividend yield of 0.5%. Westlake Chemical Partners pays out 116.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Solstice Advanced Mat pays out 16.9% of its earnings in the form of a dividend.

Institutional & Insider Ownership

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

Analyst Ratings

This is a summary of current recommendations and price targets for Westlake Chemical Partners and Solstice Advanced Mat, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Westlake Chemical Partners	0	1	1	0	2.50
Solstice Advanced Mat	0	3	7	1	2.82

Solstice Advanced Mat has a consensus price target of $78.25, indicating a potential upside of 24.90%. Given Solstice Advanced Mat’s stronger consensus rating and higher probable upside, analysts plainly believe Solstice Advanced Mat is more favorable than Westlake Chemical Partners.

Valuation & Earnings

This table compares Westlake Chemical Partners and Solstice Advanced Mat”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Westlake Chemical Partners	$1.17 billion	0.66	$48.70 million	$1.63	13.34
Solstice Advanced Mat	$3.89 billion	2.56	$237.00 million	$1.77	35.40

Solstice Advanced Mat has higher revenue and earnings than Westlake Chemical Partners. Westlake Chemical Partners is trading at a lower price-to-earnings ratio than Solstice Advanced Mat, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Westlake Chemical Partners and Solstice Advanced Mat’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Westlake Chemical Partners	4.66%	7.25%	4.63%
Solstice Advanced Mat	5.13%	14.28%	4.82%

Summary

Solstice Advanced Mat beats Westlake Chemical Partners on 13 of the 16 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 Solstice Advanced Mat

Solstice Advanced Materials is a leading global specialty materials company that advances science for smarter outcomes. Solstice offers high-performance solutions that enable critical industries and applications, including refrigerants, semiconductor manufacturing, data center cooling, nuclear power, protective fibers, healthcare packaging and more.