RPM International Inc. (RPM) vs Westlake Corporation (WLK)

RPM International Inc. and Westlake Corporation are both Specialty Chemicals companies. RPM International Inc. is the larger, with a market value of $12.6B against $8.5B — 1.5× the size. Westlake Corporation has negative trailing earnings, so its P/E is not meaningful; RPM International Inc. trades at 19.4×. RPM International Inc. grew revenue faster over the last twelve months: 6.66% against −3.95%. RPM International Inc. has the higher net margin (8.38% vs −10.9%) and the higher return on invested capital (10.9% vs −6.26%). Both pay a dividend; RPM International Inc. yields more (1.47% vs 1.14%). Across the 21 metrics below, RPM International Inc. leads on 15 and Westlake Corporation on 6.

Valuation

Metric RPM WLK Specialty Chemicals median
P/E 19.39 n/m 24.83
P/S 1.62 0.77 1.46
P/B 3.85 0.94 1.76
Price to free cash flow 18.27 n/m 19.84
EV/EBITDA 12.59 18.98 13.18
EV/Sales 1.90 1.10 1.84
Earnings yield 5.16% (14.15%) 2.11%
Free cash flow yield 5.47% (3.06%) 2.29%

Profitability

Metric RPM WLK Specialty Chemicals median
Gross margin 41.44% 9.62% 29.23%
Operating margin 12.29% (11.02%) 3.63%
Net margin 8.38% (10.86%) 2.89%
Free cash flow margin 8.88% (2.35%) 3.78%
Return on equity 21.25% (12.27%) 3.62%
Return on assets 8.17% (6.10%) 0.35%
Return on invested capital 10.92% (6.26%) 2.75%

Growth

Metric RPM WLK Specialty Chemicals median
Revenue growth (TTM) 6.66% (3.95%) 4.51%
EPS growth (last fiscal year) (3.36%) (352.16%) —
Revenue growth, 5-year CAGR 5.19% 8.28% 6.30%
Net income growth, 5-year CAGR 5.73% 0.00% 0.00%

Health

Metric RPM WLK Specialty Chemicals median
Debt to equity 0.76 0.55 0.54
Current ratio 1.68 2.45 1.94
Net debt to EBITDA 1.87 8.12 2.03

Dividend

Metric RPM WLK Specialty Chemicals median
Dividend yield 1.47% 1.14% 1.69%
Payout ratio 0.42 0.14 0.25

Size

Metric RPM WLK Specialty Chemicals median
Market cap 12.59b 8.53b 2.43b

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