Rayonier Advanced Materials (NYSE:RYAM – Get Free Report) and Westlake Chemical Partners (NYSE:WLKP – Get Free Report) are both small-cap basic materials companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, risk, dividends, valuation, earnings, institutional ownership and profitability.
Risk & Volatility
Rayonier Advanced Materials has a beta of 2.99, meaning that its share price is 199% more volatile than the S&P 500. Comparatively, Westlake Chemical Partners has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500.
Earnings & Valuation
This table compares Rayonier Advanced Materials and Westlake Chemical Partners”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Rayonier Advanced Materials | $1.64 billion | 0.33 | -$101.83 million | ($1.18) | -6.94 |
| Westlake Chemical Partners | $1.19 billion | 0.67 | $54.28 million | $1.54 | 14.64 |
Institutional and Insider Ownership
68.6% of Rayonier Advanced Materials shares are owned by institutional investors. Comparatively, 78.3% of Westlake Chemical Partners shares are owned by institutional investors. 3.1% of Rayonier Advanced Materials shares are owned by insiders. Comparatively, 1.1% of Westlake Chemical Partners shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Profitability
This table compares Rayonier Advanced Materials and Westlake Chemical Partners’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Rayonier Advanced Materials | -4.82% | -3.96% | -1.38% |
| Westlake Chemical Partners | 4.78% | 6.68% | 4.33% |
Analyst Ratings
This is a summary of recent ratings for Rayonier Advanced Materials and Westlake Chemical Partners, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Rayonier Advanced Materials | 0 | 0 | 1 | 0 | 3.00 |
| Westlake Chemical Partners | 0 | 0 | 0 | 1 | 4.00 |
Rayonier Advanced Materials currently has a consensus price target of $10.00, indicating a potential upside of 22.03%. Given Rayonier Advanced Materials’ higher possible upside, analysts clearly believe Rayonier Advanced Materials is more favorable than Westlake Chemical Partners.
Summary
Westlake Chemical Partners beats Rayonier Advanced Materials on 10 of the 15 factors compared between the two stocks.
About Rayonier Advanced Materials
Rayonier Advanced Materials Inc. manufactures and sells cellulose specialty products in the United States, China, Latin America, Canada, Japan, Europe, Latin America, other Asian countries, and internationally. It operates through High Purity Cellulose, Paperboard, and High-Yield Pulp segments. The company’s products include cellulose specialties, which are natural polymers that are used as raw materials to manufacture a range of consumer-oriented products, such as liquid crystal displays, impact-resistant plastics, thickeners for food products, pharmaceuticals, cosmetics, cigarette filters, high-tenacity rayon yarn for tires and industrial hoses, food casings, paints, and lacquers. It also offers commodity products, such as commodity viscose pulp used in woven applications, including rayon textiles for clothing and other fabrics, as well as in non-woven applications comprising baby wipes, cosmetic and personal wipes, industrial wipes, and mattress ticking; and absorbent materials consisting of fluff fibers that are used as an absorbent medium in disposable baby diapers, feminine hygiene products, incontinence pads, convalescent bed pads, industrial towels and wipes, and non-woven fabrics. In addition, the company provides paperboards for packaging, printing documents, brochures, promotional materials, paperback books and catalog covers, file folders, tags, and lottery tickets; and high-yield pulps to produces hardwood aspen, maple, and birch species for paperboard, packaging, printing and writing papers, and various other paper products. The company was founded in 1926 and is headquartered in Jacksonville, Florida.
About Westlake Chemical Partners
Westlake Chemical Partners LP acquires, develops, and operates ethylene production facilities and related assets in the United States. The company’s ethylene production facilities primarily convert ethane into ethylene. It also sells ethylene co-products, such as propylene, crude butadiene, pyrolysis gasoline, and hydrogen directly to third parties on either a spot or contract basis. Westlake Chemical Partners GP LLC serves as the general partner of the company. Westlake Chemical Partners LP was founded in 1991 and is headquartered in Houston, Texas.
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