Dow Inc. (DOW) vs Westlake Chemical Partners LP (WLKP)

Dow Inc. and Westlake Chemical Partners LP are both Chemicals companies. Dow Inc. is the larger, with a market value of $20.7B against $754.6M — 27.4× the size. Dow Inc. has negative trailing earnings, so its P/E is not meaningful; Westlake Chemical Partners LP trades at 13.0×. Westlake Chemical Partners LP grew revenue faster over the last twelve months: 12.1% against −1.20%. Westlake Chemical Partners LP has the higher net margin (4.66% vs −3.13%) and the higher return on invested capital (19.9% vs −0.12%). Both pay a dividend; Westlake Chemical Partners LP yields more (8.91% vs 4.93%). Across the 22 metrics below, Westlake Chemical Partners LP leads on 19 and Dow Inc. on 3.

Valuation

Metric DOW WLKP Chemicals median
P/E n/m 12.98 —
P/S 0.50 0.60 0.41
P/B 1.18 0.97 1.08
Price to free cash flow 12.27 1.82 7.14
EV/EBITDA 12.70 2.99 9.56
EV/Sales 0.83 1.19 0.82
Earnings yield (6.40%) 7.70% (11.64%)
Free cash flow yield 8.15% 54.86% 0.00%

Profitability

Metric DOW WLKP Chemicals median
Gross margin 9.89% 31.16% 16.03%
Operating margin (0.15%) 28.80% (0.82%)
Net margin (3.13%) 4.66% (3.05%)
Free cash flow margin 4.06% 33.14% (0.15%)
Return on equity (7.19%) 7.20% (5.24%)
Return on assets (2.14%) 4.56% (2.51%)
Return on invested capital (0.12%) 19.85% (0.75%)

Growth

Metric DOW WLKP Chemicals median
Revenue growth (TTM) (1.20%) 12.06% 2.53%
EPS growth (last fiscal year) (335.67%) (22.03%) (39.53%)
Revenue growth, 5-year CAGR 0.73% 3.83% 2.20%
Net income growth, 5-year CAGR 0.00% (5.95%) 0.00%

Health

Metric DOW WLKP Chemicals median
Debt to equity 1.03 0.52 0.71
Current ratio 1.75 3.44 1.99
Net debt to EBITDA 12.55 0.79 3.49

Dividend

Metric DOW WLKP Chemicals median
Dividend yield 4.93% 8.91% 4.62%
Payout ratio — 1.16 —

Size

Metric DOW WLKP Chemicals median
Market cap 20.65b 754.62m 603.67m

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