Critical Review: Calgon Carbon Corporation (CCC) and Westlake Chemical Corporation (WLK)
Calgon Carbon Corporation (NYSE: CCC) and Westlake Chemical Corporation (NYSE:WLK) are both industrial products companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, risk, dividends, institutional ownership, earnings, valuation and analyst recommendations.
Calgon Carbon Corporation pays an annual dividend of $0.20 per share and has a dividend yield of 0.9%. Westlake Chemical Corporation pays an annual dividend of $0.84 per share and has a dividend yield of 1.0%. Calgon Carbon Corporation pays out 133.3% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Westlake Chemical Corporation pays out 24.0% of its earnings in the form of a dividend. Westlake Chemical Corporation has raised its dividend for 13 consecutive years. Westlake Chemical Corporation is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
This table compares Calgon Carbon Corporation and Westlake Chemical Corporation’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Calgon Carbon Corporation||1.27%||5.46%||2.81%|
|Westlake Chemical Corporation||6.57%||13.68%||5.03%|
This is a breakdown of current ratings for Calgon Carbon Corporation and Westlake Chemical Corporation, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Calgon Carbon Corporation||1||1||2||0||2.25|
|Westlake Chemical Corporation||0||3||7||0||2.70|
Calgon Carbon Corporation currently has a consensus target price of $17.75, indicating a potential downside of 17.06%. Westlake Chemical Corporation has a consensus target price of $68.38, indicating a potential downside of 15.76%. Given Westlake Chemical Corporation’s stronger consensus rating and higher probable upside, analysts plainly believe Westlake Chemical Corporation is more favorable than Calgon Carbon Corporation.
Insider and Institutional Ownership
85.2% of Calgon Carbon Corporation shares are held by institutional investors. Comparatively, 32.0% of Westlake Chemical Corporation shares are held by institutional investors. 2.3% of Calgon Carbon Corporation shares are held by company insiders. Comparatively, 71.7% of Westlake Chemical Corporation shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Calgon Carbon Corporation and Westlake Chemical Corporation’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Calgon Carbon Corporation||$557.15 million||1.95||$80.63 million||$0.15||142.67|
|Westlake Chemical Corporation||$6.94 billion||1.51||$1.33 billion||$3.50||23.19|
Westlake Chemical Corporation has higher revenue and earnings than Calgon Carbon Corporation. Westlake Chemical Corporation is trading at a lower price-to-earnings ratio than Calgon Carbon Corporation, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Calgon Carbon Corporation has a beta of 1.14, indicating that its stock price is 14% more volatile than the S&P 500. Comparatively, Westlake Chemical Corporation has a beta of 1.62, indicating that its stock price is 62% more volatile than the S&P 500.
Westlake Chemical Corporation beats Calgon Carbon Corporation on 14 of the 17 factors compared between the two stocks.
Calgon Carbon Corporation Company Profile
Calgon Carbon Corporation is a manufacturer of activated carbon, with capabilities in ultraviolet (UV) light disinfection. The Company provides purification solutions for drinking water, wastewater, pollution abatement, and a range of industrial and commercial manufacturing processes. The Company operates through four segments: Activated Carbon and Service, Equipment, Consumer and Other. The Company’s products and services are designed to protect human health and the environment from harmful contaminants in water, and air. The Company provides purification solutions for drinking water, wastewater, pollution abatement, and a range of industrial and commercial manufacturing processes. The Company operates in the United States, Europe, Japan, Africa, Canada, China, India, Latin America, and in other parts of Asia.
Westlake Chemical Corporation Company Profile
Westlake Chemical Corporation is a global manufacturer and marketer of basic chemicals, vinyls, polymers and building products. The Company’s products include a range of chemicals, which are fundamental to various consumer and industrial markets, including flexible and rigid packaging, automotive products, coatings, water treatment, refrigerants, residential and commercial construction, as well as other durable and non-durable goods. Its segments include Olefins and Vinyls. It manufactures ethylene (through Westlake Chemical OpCo LP (OpCo)), polyethylene, styrene and associated co-products at its manufacturing facility in Lake Charles and polyethylene at its Longview facility. The Company’s products in its Vinyls segment include polyvinyl chloride (PVC), vinyl chloride monomer (VCM), ethylene dichloride (EDC), chlor-alkali (chlorine and caustic soda) and chlorinated derivative products and, through OpCo, ethylene. It also manufactures and sells building products fabricated from PVC.
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