Financial Contrast: Koninklijke DSM (OTCMKTS:RDSMY) versus Westlake Chemical Partners (NYSE:WLKP)

Westlake Chemical Partners (NYSE:WLKP) and Koninklijke DSM (OTCMKTS:RDSMY) are both materials companies, but which is the superior investment? We will compare the two businesses based on the strength of their earnings, risk, institutional ownership, dividends, profitability, valuation and analyst recommendations.

Dividends

Westlake Chemical Partners pays an annual dividend of $1.89 per share and has a dividend yield of 8.7%. Koninklijke DSM pays an annual dividend of $0.37 per share and has a dividend yield of 1.1%. Westlake Chemical Partners pays out 116.0% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.

Volatility and Risk

Westlake Chemical Partners has a beta of 0.53, indicating that its stock price is 47% less volatile than the S&P 500. Comparatively, Koninklijke DSM has a beta of 1, indicating that its stock price has a similar volatility profile to the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Westlake Chemical Partners and Koninklijke DSM, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Westlake Chemical Partners	0	1	1	0	2.50
Koninklijke DSM	0	0	0	0	0.00

Institutional and Insider Ownership

78.3% of Westlake Chemical Partners shares are held by institutional investors. Comparatively, 0.2% of Koninklijke DSM shares are held by institutional investors. 1.1% of Westlake Chemical Partners shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares Westlake Chemical Partners and Koninklijke DSM’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Westlake Chemical Partners	4.66%	7.18%	4.59%
Koninklijke DSM	N/A	N/A	N/A

Valuation and Earnings

This table compares Westlake Chemical Partners and Koninklijke DSM”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Westlake Chemical Partners	$1.17 billion	0.66	$48.70 million	$1.63	13.31
Koninklijke DSM	$10.89 billion	2.17	$1.98 billion	N/A	N/A

Koninklijke DSM has higher revenue and earnings than Westlake Chemical Partners.

Summary

Westlake Chemical Partners beats Koninklijke DSM on 8 of the 13 factors compared between the two stocks.

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.

About Koninklijke DSM

Koninklijke DSM N.V., a science-based company, engages in nutrition, health, and sustainable living businesses in the Netherlands, Switzerland, rest of Europe, North America, Latin America, China, rest of Asia, and internationally. It operates through Nutrition, Materials, and Innovation Center segments. The Nutrition segment offers animal nutrition and health products, including vitamins, premixes, carotenoids, enzymes, microbes, and eubiotics; human nutrition and health products comprising vitamins, nutritional lipids, minerals, carotenoids, nutraceuticals, digestive enzymes, probiotics, and prebiotics, as well as active pharmaceutical ingredients; premix, market-ready solutions, and personalized nutrition; human milk oligosaccharides; and skin and sun care, hair care, and aroma ingredients; omega-3 fatty acids; and specialty food enzymes, cultures, bio-preservation, texturizing hydrocolloids, sugar reduction, and savory taste solutions. The Materials segment provides specialty plastics used in components for the electrical and electronics, automotive, flexible food-packaging, and consumer goods industries; and Dyneema, a fiber solution for use in personal protection, workwear, sports apparel, outdoor equipment, ropes and slings, synthetic chains, and nets for the aquaculture, and renewable energy sectors. The Innovation Center segment offers biomedical materials, and medical device and material manufacturing technologies in the areas of cardiovascular, continence care, dental, diabetes management, gynecology, neurology, ophthalmology, orthopedic, peripheral vascular, plastic and reconstructive surgery, and wound management. It also commercializes yeast technology yeast for ethanol production. The company was founded in 1902 and is headquartered in Heerlen, the Netherlands.