Financial Contrast: Quaker Chemical Corporation (KWR) & PetroLogistics (PDH)

PetroLogistics (NYSE: PDH) and Quaker Chemical Corporation (NYSE:KWR) are both commodity chemicals – nec companies, but which is the better business? We will contrast the two businesses based on the strength of their valuation, dividends, profitability, earnings, analyst recommendations, risk and institutional ownership.

Analyst Ratings

This is a summary of recent ratings and recommmendations for PetroLogistics and Quaker Chemical Corporation, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PetroLogistics 0 0 0 0 N/A
Quaker Chemical Corporation 0 3 0 0 2.00

Quaker Chemical Corporation has a consensus price target of $159.00, suggesting a potential upside of 1.18%.

Earnings & Valuation

This table compares PetroLogistics and Quaker Chemical Corporation’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
PetroLogistics N/A N/A N/A $1.18 N/A
Quaker Chemical Corporation $746.66 million 2.80 $61.40 million $3.55 44.26

Quaker Chemical Corporation has higher revenue and earnings than PetroLogistics. PetroLogistics is trading at a lower price-to-earnings ratio than Quaker Chemical Corporation, indicating that it is currently the more affordable of the two stocks.

Dividends

Quaker Chemical Corporation pays an annual dividend of $1.42 per share and has a dividend yield of 0.9%. PetroLogistics does not pay a dividend. Quaker Chemical Corporation pays out 40.0% of its earnings in the form of a dividend. Quaker Chemical Corporation has raised its dividend for 7 consecutive years.

Profitability

This table compares PetroLogistics and Quaker Chemical Corporation’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
PetroLogistics N/A N/A N/A
Quaker Chemical Corporation 5.93% 15.43% 9.20%

Insider & Institutional Ownership

83.1% of Quaker Chemical Corporation shares are held by institutional investors. 3.6% of Quaker Chemical Corporation shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Summary

Quaker Chemical Corporation beats PetroLogistics on 9 of the 10 factors compared between the two stocks.

About PetroLogistics

PetroLogistics LP owns and operates propane dehydrogenation (PDH) facility. The Company is located in the vicinity of the Houston Ship Channel. As of April 23, 2012, the Company had an annual production capacity of approximately 1.45 billion pounds of propylene. Its PDH facility uses a CATOFIN dehydrogenation technology pursuant to a fully-paid license from CB&I Lummus. It derives its sales from three different sources: propylene sales, hydrogen sales, and mixed stream of butane and butylenes (C4 mix stream) and heavier hydrocarbons (C5+ stream) sales. In July 2014, Flint Hills Resources acquired PetroLogistics LP (PetroLogistics) and general partner, PetroLogistics GP LLC (MLP GP).

About Quaker Chemical Corporation

Quaker Chemical Corporation is a provider of process fluids, chemical specialties, and technical expertise to a range of industries, including steel, aluminum, mining, aerospace, tube and pipe, cans and others. The Company’s segments include North America, Europe, Middle East and Africa (EMEA), Asia/Pacific and South America. It develops, produces, and markets a range of formulated chemical specialty products and offers chemical management services. Its products and services include rolling lubricants (used by manufacturers of steel in the hot and cold rolling of steel and by manufacturers of aluminum in the hot rolling of aluminum); machining and grinding compounds (used by metalworking customers in cutting, shaping, and grinding metal parts, which require special treatment to enable them to tolerate the manufacturing process, achieve closer tolerance, and improve tool life), and hydraulic fluids (used by steel, metalworking, and other customers to operate hydraulic equipment).

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