NewMarket Corporation (NEU) vs Westlake Corporation (WLK)

NewMarket Corporation and Westlake Corporation are both Specialty Chemicals companies. NewMarket Corporation and Westlake Corporation are of similar size ($8.5B and $8.2B). Westlake Corporation has negative trailing earnings, so its P/E is not meaningful; NewMarket Corporation trades at 19.3×. NewMarket Corporation grew revenue faster over the last twelve months: −1.31% against −3.95%. NewMarket Corporation has the higher net margin (15.7% vs −10.9%) and the higher return on invested capital (13.2% vs −6.26%). Both pay a dividend; NewMarket Corporation yields more (1.50% vs 1.14%). Across the 21 metrics below, NewMarket Corporation leads on 16 and Westlake Corporation on 5.

Valuation

Metric NEU WLK Specialty Chemicals median
P/E 19.32 n/m 24.83
P/S 3.00 0.77 1.46
P/B 4.47 0.94 1.76
Price to free cash flow 17.37 n/m 19.84
EV/EBITDA 13.31 18.98 13.18
EV/Sales 3.28 1.10 1.84
Earnings yield 5.18% (14.15%) 2.11%
Free cash flow yield 5.76% (3.06%) 2.29%

Profitability

Metric NEU WLK Specialty Chemicals median
Gross margin 31.49% 9.62% 29.23%
Operating margin 19.97% (11.02%) 3.63%
Net margin 15.74% (10.86%) 2.89%
Free cash flow margin 17.27% (2.35%) 3.78%
Return on equity 25.02% (12.27%) 3.62%
Return on assets 12.67% (6.10%) 0.35%
Return on invested capital 13.17% (6.26%) 2.75%

Growth

Metric NEU WLK Specialty Chemicals median
Revenue growth (TTM) (1.31%) (3.95%) 4.51%
EPS growth (last fiscal year) (7.84%) (352.16%) —
Revenue growth, 5-year CAGR 6.27% 8.28% 6.30%
Net income growth, 5-year CAGR 9.08% 0.00% 0.00%

Health

Metric NEU WLK Specialty Chemicals median
Debt to equity 0.47 0.55 0.54
Current ratio 2.25 2.45 1.94
Net debt to EBITDA 1.21 8.12 2.03

Dividend

Metric NEU WLK Specialty Chemicals median
Dividend yield 1.50% 1.14% 1.69%
Payout ratio 0.24 0.14 0.25

Size

Metric NEU WLK Specialty Chemicals median
Market cap 8.22b 8.53b 2.43b

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