Axalta Coating Systems Ltd. (AXTA) vs Westlake Corporation (WLK)

Axalta Coating Systems Ltd. and Westlake Corporation are both Specialty Chemicals companies. Axalta Coating Systems Ltd. and Westlake Corporation are of similar size ($8.5B and $7.8B). Westlake Corporation has negative trailing earnings, so its P/E is not meaningful; Axalta Coating Systems Ltd. trades at 23.3×. Axalta Coating Systems Ltd. grew revenue faster over the last twelve months: 0.14% against −0.37%. Axalta Coating Systems Ltd. has the higher net margin (6.46% vs −3.87%) and the higher return on invested capital (7.99% vs −2.22%). Across the 21 metrics below, Axalta Coating Systems Ltd. leads on 15 and Westlake Corporation on 6.

Valuation

Metric AXTA WLK Specialty Chemicals median
P/E 23.28 n/m 24.46
P/S 1.51 0.74 1.64
P/B 2.92 0.93 1.88
Price to free cash flow 15.68 707.11 19.15
EV/EBITDA 10.57 16.75 12.87
EV/Sales 1.96 1.06 1.88
Earnings yield 4.30% (5.08%) 2.42%
Free cash flow yield 6.38% 0.14% 2.25%

Profitability

Metric AXTA WLK Specialty Chemicals median
Gross margin 33.58% 10.78% 27.84%
Operating margin 12.37% (3.81%) 5.64%
Net margin 6.46% (3.87%) 4.19%
Free cash flow margin 9.61% 0.10% 3.49%
Return on equity 13.38% (4.64%) 2.34%
Return on assets 4.31% (2.27%) 0.45%
Return on invested capital 7.99% (2.22%) 3.21%

Growth

Metric AXTA WLK Specialty Chemicals median
Revenue growth (TTM) 0.14% (0.37%) 6.39%
EPS growth (last fiscal year) (2.25%) (352.16%) (9.77%)
Revenue growth, 5-year CAGR 6.48% 8.28% 6.33%
Net income growth, 5-year CAGR 25.46% 0.00% 0.00%

Health

Metric AXTA WLK Specialty Chemicals median
Debt to equity 1.12 0.55 0.59
Current ratio 1.53 2.38 2.28
Net debt to EBITDA 2.45 8.12 2.03

Dividend

Metric AXTA WLK Specialty Chemicals median
Dividend yield — 3.20% 1.80%
Payout ratio — — 0.40

Size

Metric AXTA WLK Specialty Chemicals median
Market cap 7.78b 8.47b 2.08b

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