Westaim (OTCMKTS:WEDXF – Get Free Report) and Toray Industries (OTCMKTS:TRYIY – Get Free Report) are both basic materials companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, earnings, dividends, institutional ownership, profitability and analyst recommendations.
Risk and Volatility
Westaim has a beta of 0.21, suggesting that its share price is 79% less volatile than the S&P 500. Comparatively, Toray Industries has a beta of 0.5, suggesting that its share price is 50% less volatile than the S&P 500.
Valuation & Earnings
This table compares Westaim and Toray Industries”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Westaim | $53.37 million | 9.85 | -$38.00 million | ($1.92) | -8.23 |
| Toray Industries | $17.17 billion | 0.62 | $524.84 million | $0.70 | 20.31 |
Toray Industries has higher revenue and earnings than Westaim. Westaim is trading at a lower price-to-earnings ratio than Toray Industries, indicating that it is currently the more affordable of the two stocks.
Dividends
Westaim pays an annual dividend of $0.09 per share and has a dividend yield of 0.6%. Toray Industries pays an annual dividend of $0.15 per share and has a dividend yield of 1.1%. Westaim pays out -4.7% of its earnings in the form of a dividend. Toray Industries pays out 21.4% 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.
Analyst Recommendations
This is a breakdown of current ratings for Westaim and Toray Industries, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Westaim | 0 | 0 | 0 | 0 | 0.00 |
| Toray Industries | 0 | 1 | 0 | 1 | 3.00 |
Profitability
This table compares Westaim and Toray Industries’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Westaim | -108.56% | -9.68% | -7.67% |
| Toray Industries | 3.06% | 4.22% | 2.30% |
Summary
Toray Industries beats Westaim on 11 of the 13 factors compared between the two stocks.
About Westaim
The Westaim Corporation is a private equity firm specializing in direct and indirect investments through acquisitions, joint ventures, secondary investments both direct and indirect, fund of fund investments, and other arrangements. For direct investments, the firm invests in early venture, mid venture, late venture, middle market, later stage, mature, emerging growth, PIPEs, and buyout transactions. For fund of fund investments, it seeks to invest in private equity funds, venture capital funds, and hedge funds. The firm seeks to provide long term capital to businesses operating in the global financial services industry. It typically acquires controlling interests in businesses. The firm seeks to acquire debt, equity, or derivative securities of both public and private companies. It invests with the objective of providing its shareholders with capital appreciation and real wealth preservation. The firm seeks to provide its portfolio companies with advisory services including, but not limited to, advice on capital allocation, financing strategy, performance measurement and merger and acquisition support. It also seeks to partner with like-minded providers of third party capital to help supplement the firm's own capital, when completing acquisitions. The firm generally seeks to hold its investments for seven to 15 years. The Westaim Corporation was founded in 1996 and is based in Toronto, Canada.
About Toray Industries
Toray Industries, Inc., together with its subsidiaries, manufactures, processes, and sells fibers and textiles, performance chemicals, carbon fiber composite materials, environment and engineering products, and life science products in Japan, China, North America, Europe, and internationally. The company offers filament yarns, staple fibers, and spun yarns, as well as woven and knitted fabrics of nylon, polyester, acrylics, and others; non-woven fabrics; ultra-fine fibers; and apparel products. It also provides nylon, ABS, PBT, PPS, and other resins and molded products; polyolefin foam products; polyester, polyethylene, polypropylene, and other films; processed film products; raw materials for synthetic fibers and other plastics; fine chemicals; electronic and information materials; and graphic materials. In addition, the company offers carbon fibers, carbon fiber composite materials, and molded products; analysis, physical evaluation, research, and other services; and pharmaceuticals, medical devices, etc. Further, it provides engineering services; condominiums; industrial equipment and machinery; IT-related equipment; water treatment membranes and related equipment; and materials for housing, building, and civil engineering applications. The company was formerly known as Toyo Rayon Co., Ltd. and changed its name to Toray Industries, Inc. in 1970. The company was incorporated in 1926 and is headquartered in Tokyo, Japan.
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