Analyzing Northern Technologies International (NASDAQ:NTIC) and Westlake (NYSE:WLK)

Westlake (NYSE:WLK) and Northern Technologies International (NASDAQ:NTIC) are both materials companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, dividends, earnings and risk.

Volatility & Risk

Westlake has a beta of 0.66, indicating that its share price is 34% less volatile than the S&P 500. Comparatively, Northern Technologies International has a beta of 0.15, indicating that its share price is 85% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations and price targets for Westlake and Northern Technologies International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Westlake	3	8	4	0	2.07
Northern Technologies International	1	1	0	0	1.50

Westlake currently has a consensus target price of $80.40, suggesting a potential upside of 25.18%. Given Westlake’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Westlake is more favorable than Northern Technologies International.

Profitability

This table compares Westlake and Northern Technologies International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Westlake	-3.91%	1.99%	0.93%
Northern Technologies International	-1.26%	-0.45%	-0.33%

Insider and Institutional Ownership

28.4% of Westlake shares are held by institutional investors. Comparatively, 32.9% of Northern Technologies International shares are held by institutional investors. 1.4% of Westlake shares are held by company insiders. Comparatively, 24.9% of Northern Technologies International shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Westlake and Northern Technologies International”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Westlake	$11.17 billion	0.73	-$1.51 billion	($3.47)	-18.51
Northern Technologies International	$84.24 million	0.84	$20,000.00	($0.12)	-62.08

Northern Technologies International has lower revenue, but higher earnings than Westlake. Northern Technologies International is trading at a lower price-to-earnings ratio than Westlake, indicating that it is currently the more affordable of the two stocks.

Summary

Westlake beats Northern Technologies International on 8 of the 14 factors compared between the two stocks.

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.

About Northern Technologies International

Northern Technologies International Corporation develops and markets rust and corrosion inhibiting solutions in North America, South America, Europe, Asia, the Middle East and internationally. It offers rust and corrosion inhibiting products, such as plastic and paper packaging, liquids, coatings, rust removers, cleaners, diffusers, and engineered solutions designed for the oil and gas industry under the ZERUST brand. The company provides a portfolio of bio-based and certified compostable polymer resin compounds and finished products under the Natur-Tec brand. In addition, it offers on-site and technical consulting for rust and corrosion prevention issues. It sells its products and services to automotive, electronics, electrical, mechanical, military, retail consumer, and oil and gas markets through direct sales force, network of independent distributors, agents, manufacturer's sales representatives, and strategic partners. The company was founded in 1970 and is headquartered in Circle Pines, Minnesota.