Pledge Petroleum (OTCMKTS:PROP) and Westlake Chemical Partners (NYSE:WLKP) are both small-cap oils/energy companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, institutional ownership, valuation and dividends.
Risk and Volatility
Pledge Petroleum has a beta of -24.49, meaning that its share price is 2,549% less volatile than the S&P 500. Comparatively, Westlake Chemical Partners has a beta of 0.52, meaning that its share price is 48% less volatile than the S&P 500.
This table compares Pledge Petroleum and Westlake Chemical Partners’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Westlake Chemical Partners||$1.29 billion||0.61||$49.35 million||$1.51||16.16|
Westlake Chemical Partners has higher revenue and earnings than Pledge Petroleum.
This is a breakdown of recent ratings for Pledge Petroleum and Westlake Chemical Partners, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Westlake Chemical Partners||0||1||1||0||2.50|
Westlake Chemical Partners has a consensus price target of $26.00, suggesting a potential upside of 6.56%. Given Westlake Chemical Partners’ higher possible upside, analysts clearly believe Westlake Chemical Partners is more favorable than Pledge Petroleum.
Insider and Institutional Ownership
0.0% of Pledge Petroleum shares are owned by institutional investors. Comparatively, 48.9% of Westlake Chemical Partners shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
This table compares Pledge Petroleum and Westlake Chemical Partners’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Westlake Chemical Partners||4.00%||5.43%||3.42%|
Westlake Chemical Partners pays an annual dividend of $1.78 per share and has a dividend yield of 7.3%. Pledge Petroleum does not pay a dividend. Westlake Chemical Partners pays out 117.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Westlake Chemical Partners has raised its dividend for 4 consecutive years.
Westlake Chemical Partners beats Pledge Petroleum on 11 of the 13 factors compared between the two stocks.
Pledge Petroleum Company Profile
Pledge Petroleum Corp. does not have significant operations. Previously, it focused on the acquisition of producing oil fields. The company was formerly known as Propell Technologies Group, Inc. and changed its name to Pledge Petroleum Corp. in February 2017. Pledge Petroleum Corp. is based in Houston, Texas.
Westlake Chemical Partners Company Profile
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, including propylene, crude butadiene, pyrolysis gasoline, and hydrogen directly to third parties on a spot or contract basis. Westlake Chemical Partners GP LLC serves as the general partner of the company. The company was founded in 2014 and is headquartered in Houston, Texas.
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