Eastman Chemical Company (EMN) vs Westlake Corporation (WLK)

Eastman Chemical Company and Westlake Corporation are both Specialty Chemicals companies. Westlake Corporation is the larger, with a market value of $8.5B against $7.6B — 1.1× the size. Westlake Corporation has negative trailing earnings, so its P/E is not meaningful; Eastman Chemical Company trades at 17.3×. Westlake Corporation grew revenue faster over the last twelve months: −3.95% against −4.53%. Eastman Chemical Company has the higher net margin (4.99% vs −10.9%) and the higher return on invested capital (4.72% vs −6.26%). Both pay a dividend; Eastman Chemical Company yields more (3.95% vs 1.14%). Across the 21 metrics below, Eastman Chemical Company leads on 13 and Westlake Corporation on 8.

Valuation

Metric EMN WLK Specialty Chemicals median
P/E 17.30 n/m 24.83
P/S 0.86 0.77 1.46
P/B 1.24 0.94 1.76
Price to free cash flow 14.20 n/m 19.84
EV/EBITDA 8.96 18.98 13.18
EV/Sales 1.29 1.10 1.84
Earnings yield 5.78% (14.15%) 2.11%
Free cash flow yield 7.04% (3.06%) 2.29%

Profitability

Metric EMN WLK Specialty Chemicals median
Gross margin 19.88% 9.62% 29.23%
Operating margin 8.47% (11.02%) 3.63%
Net margin 4.99% (10.86%) 2.89%
Free cash flow margin 6.08% (2.35%) 3.78%
Return on equity 7.32% (12.27%) 3.62%
Return on assets 2.88% (6.10%) 0.35%
Return on invested capital 4.72% (6.26%) 2.75%

Growth

Metric EMN WLK Specialty Chemicals median
Revenue growth (TTM) (4.53%) (3.95%) 4.51%
EPS growth (last fiscal year) (46.54%) (352.16%) —
Revenue growth, 5-year CAGR 0.65% 8.28% 6.30%
Net income growth, 5-year CAGR (0.17%) 0.00% 0.00%

Health

Metric EMN WLK Specialty Chemicals median
Debt to equity 0.72 0.55 0.54
Current ratio 1.50 2.45 1.94
Net debt to EBITDA 2.82 8.12 2.03

Dividend

Metric EMN WLK Specialty Chemicals median
Dividend yield 3.95% 1.14% 1.69%
Payout ratio 0.53 0.14 0.25

Size

Metric EMN WLK Specialty Chemicals median
Market cap 7.57b 8.53b 2.43b

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