Financial Survey: Westlake Chemical Partners (NYSE:WLKP) and Pledge Petroleum (NYSE:PROP)

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Westlake Chemical Partners (NYSE:WLKP) and Pledge Petroleum (OTCMKTS:PROP) are both small-cap basic materials companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, risk, profitability, valuation, analyst recommendations and earnings.

Analyst Ratings

This is a breakdown of current recommendations for Westlake Chemical Partners and Pledge Petroleum, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Westlake Chemical Partners 0 1 1 0 2.50
Pledge Petroleum 0 0 0 0 N/A

Westlake Chemical Partners currently has a consensus target price of $26.00, indicating a potential upside of 6.43%. Given Westlake Chemical Partners’ higher possible upside, analysts clearly believe Westlake Chemical Partners is more favorable than Pledge Petroleum.

Earnings and Valuation

This table compares Westlake Chemical Partners and Pledge Petroleum’s gross revenue, earnings per share 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 16.18
Pledge Petroleum $20,000.00 590.83 -$30,000.00 N/A N/A

Westlake Chemical Partners has higher revenue and earnings than Pledge Petroleum.

Profitability

This table compares Westlake Chemical Partners and Pledge Petroleum’s 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%
Pledge Petroleum N/A -541.01% -116.81%

Dividends

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 increased its dividend for 4 consecutive years.

Institutional and Insider Ownership

48.9% of Westlake Chemical Partners shares are held by institutional investors. Comparatively, 0.0% of Pledge Petroleum shares are held by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk & Volatility

Westlake Chemical Partners has a beta of 0.52, meaning that its share price is 48% less volatile than the S&P 500. Comparatively, Pledge Petroleum has a beta of -24.49, meaning that its share price is 2,549% less volatile than the S&P 500.

Summary

Westlake Chemical Partners beats Pledge Petroleum on 11 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, 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.

About Pledge Petroleum

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.

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