Avient (NYSE:AVNT – Get Free Report) and Westlake (NYSE:WLK – Get Free Report) are both mid-cap materials companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, institutional ownership, dividends and earnings.
Volatility & Risk
Avient has a beta of 1.23, indicating that its stock price is 23% more volatile than the S&P 500. Comparatively, Westlake has a beta of 0.66, indicating that its stock price is 34% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Avient and Westlake, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Avient | 0 | 4 | 3 | 0 | 2.43 |
| Westlake | 3 | 8 | 4 | 0 | 2.07 |
Avient presently has a consensus target price of $47.88, indicating a potential upside of 5.12%. Westlake has a consensus target price of $81.00, indicating a potential upside of 27.38%. Given Westlake’s higher probable upside, analysts plainly believe Westlake is more favorable than Avient.
Institutional and Insider Ownership
95.5% of Avient shares are owned by institutional investors. Comparatively, 28.4% of Westlake shares are owned by institutional investors. 0.9% of Avient shares are owned by company insiders. Comparatively, 1.4% of Westlake shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Dividends
Avient pays an annual dividend of $1.10 per share and has a dividend yield of 2.4%. Westlake pays an annual dividend of $2.13 per share and has a dividend yield of 3.3%. Avient pays out 56.4% of its earnings in the form of a dividend. Westlake pays out -61.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Avient has increased its dividend for 1 consecutive years and Westlake has increased its dividend for 21 consecutive years. Westlake is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Profitability
This table compares Avient and Westlake’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Avient | 5.27% | 12.17% | 4.95% |
| Westlake | -3.91% | 1.99% | 0.93% |
Earnings and Valuation
This table compares Avient and Westlake”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Avient | $3.26 billion | 1.28 | $81.90 million | $1.95 | 23.36 |
| Westlake | $11.17 billion | 0.73 | -$1.51 billion | ($3.47) | -18.33 |
Avient has higher earnings, but lower revenue than Westlake. Westlake is trading at a lower price-to-earnings ratio than Avient, indicating that it is currently the more affordable of the two stocks.
Summary
Avient beats Westlake on 10 of the 17 factors compared between the two stocks.
About Avient
Avient Corporation operates as a formulator of material solutions in the United States, Canada, Mexico, Europe, South America, and Asia. It operates in two segments, Color, Additives and Inks; and Specialty Engineered Materials. The Color, Additives and Inks segment offers custom color and additive concentrates in solid and liquid form for thermoplastics, dispersions for thermosets, and specialty inks; custom-formulated liquid system, such as polyester, vinyl, natural rubber and latex, polyurethane, and silicone; and proprietary inks. Its products are used in medical and pharmaceutical devices, food packaging, personal care and cosmetics, transportation, building products, wire and cable, recreational and athletic apparel, construction and filtration, outdoor furniture, healthcare, textiles and appliances, and industrial markets. The Specialty Engineered Materials segment provides specialty polymer formulations, services, and solutions for designers, assemblers, and processors of thermoplastic materials. It sells its products through direct sales personnel, distributors, and commissioned sales agents. The company was formerly known as PolyOne Corporation and changed its name to Avient Corporation in June 2020. Avient Corporation was founded in 1885 and is headquartered in Avon Lake, Ohio.
About Westlake
Westlake Corporation engages in the manufacture and marketing of performance and essential materials, and housing and infrastructure products in the United States, Canada, Germany, China, Mexico, Brazil, France, Italy, Taiwan, and internationally. The company operates through two segments: Performance and Essential Materials and Housing and Infrastructure Products. The Performance and Essential Materials segment offers ethylene, polyethylene, styrene, chlorinated derivative products, ethylene dichloride, vinyl chloride monomer, polyvinyl chloride (PVC), epoxy specialty resins, and base epoxy resins and intermediaries, as well as chlor-alkali, such as chlorine and caustic soda. The Housing and Infrastructure Products segment provides residential PVC sidings; PVC trim and mouldings; architectural stone veneers; windows; PVC decking; PVC films for various inflatables, wallcovering, and tape and roofing applications; polymer composite and cement roof tiles; PVC pipes and fittings for various water, sewer, electrical, and industrial applications; PVC compounds used in various housing, medical, and automobile products; and consumer and commercial products, such as landscape edging; industrial, home, and office matting; marine dock edging; and masonry joint controls. It offers its products to chemical processors, plastics fabricators, small construction contractors, municipalities, and supply warehouses for use in various consumer and industrial markets, including residential construction, flexible and rigid packaging, automotive products, healthcare products, water treatment, wind turbines, and coatings, as well as other durable and non-durable goods. The company was formerly known as Westlake Chemical Corporation and changed its name to Westlake Corporation in February 2022. Westlake Corporation was founded in 1986 and is headquartered in Houston, Texas. Westlake Corporation operates as a subsidiary of TTWF LP.
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