Solstice Advanced Materials Inc. (SOLS) vs Westlake Corporation (WLK)

Solstice Advanced Materials Inc. and Westlake Corporation are both Specialty Chemicals companies. Solstice Advanced Materials Inc. and Westlake Corporation are of similar size ($8.8B and $8.5B). Westlake Corporation has negative trailing earnings, so its P/E is not meaningful; Solstice Advanced Materials Inc. trades at 27.6×. Solstice Advanced Materials Inc. grew revenue faster over the last twelve months: 9.62% against −0.37%. Solstice Advanced Materials Inc. has the higher net margin (7.79% vs −3.87%) and the higher return on invested capital (13.1% vs −2.22%). Both pay a dividend; Westlake Corporation yields more (3.35% vs 0.39%). Across the 20 metrics below, Solstice Advanced Materials Inc. leads on 14 and Westlake Corporation on 6.

Valuation

Metric SOLS WLK Specialty Chemicals median
P/E 27.63 n/m 26.45
P/S 2.20 0.71 1.64
P/B 5.83 0.88 1.84
Price to free cash flow 21.41 675.16 21.25
EV/EBITDA 12.52 16.21 12.93
EV/Sales 2.52 1.02 1.90
Earnings yield 3.62% (5.32%) 2.47%
Free cash flow yield 4.67% 0.15% 2.20%

Profitability

Metric SOLS WLK Specialty Chemicals median
Gross margin 30.90% 10.78% 27.84%
Operating margin 14.69% (3.81%) 5.64%
Net margin 7.79% (3.87%) 4.26%
Free cash flow margin 10.28% 0.10% 4.75%
Return on equity 13.67% (4.64%) 3.73%
Return on assets 5.74% (2.27%) 1.16%
Return on invested capital 13.13% (2.22%) 3.21%

Growth

Metric SOLS WLK Specialty Chemicals median
Revenue growth (TTM) 9.62% (0.37%) 7.03%
EPS growth (last fiscal year) (60.91%) (352.16%) (8.48%)
Revenue growth, 5-year CAGR — 8.28% 6.27%
Net income growth, 5-year CAGR — 0.00% 0.00%

Health

Metric SOLS WLK Specialty Chemicals median
Debt to equity 1.31 0.55 0.59
Current ratio 1.38 2.38 2.16
Net debt to EBITDA 1.85 8.12 2.03

Dividend

Metric SOLS WLK Specialty Chemicals median
Dividend yield 0.39% 3.35% 1.84%
Payout ratio 0.11 — 0.40

Size

Metric SOLS WLK Specialty Chemicals median
Market cap 8.75b 8.47b 1.95b

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