Analyzing Lightwave Logic (NASDAQ:LWLG) and Westlake (NYSE:WLK)

Lightwave Logic (NASDAQ:LWLG) and Westlake (NYSE:WLK) are both basic materials companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, profitability, institutional ownership, risk, analyst recommendations and earnings.

Profitability

This table compares Lightwave Logic and Westlake’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lightwave Logic	-24,492.05%	-64.31%	-57.29%
Westlake	3.23%	4.19%	2.21%

Analyst Recommendations

This is a summary of recent ratings for Lightwave Logic and Westlake, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lightwave Logic	0	0	0	0	0.00
Westlake	0	6	7	0	2.54

Westlake has a consensus target price of $90.54, suggesting a potential upside of 27.26%. Given Westlake’s stronger consensus rating and higher probable upside, analysts clearly believe Westlake is more favorable than Lightwave Logic.

Volatility and Risk

Lightwave Logic has a beta of 2.26, meaning that its share price is 126% more volatile than the S&P 500. Comparatively, Westlake has a beta of 0.91, meaning that its share price is 9% less volatile than the S&P 500.

Insider & Institutional Ownership

27.0% of Lightwave Logic shares are owned by institutional investors. Comparatively, 28.4% of Westlake shares are owned by institutional investors. 4.2% of Lightwave Logic shares are owned by company insiders. Comparatively, 1.3% of Westlake shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Lightwave Logic and Westlake”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lightwave Logic	$100,000.00	1,600.51	-$22.53 million	($0.18)	-7.11
Westlake	$12.14 billion	0.75	$602.00 million	$2.98	23.87

Westlake has higher revenue and earnings than Lightwave Logic. Lightwave Logic 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 Lightwave Logic on 11 of the 14 factors compared between the two stocks.

About Lightwave Logic

Lightwave Logic, Inc. focuses on the development of photonic devices and electro-optical polymer materials systems for fiber-optic data communications, telecommunications, and optical computing markets in the United States. The company is involved in the designing and synthesizing of organic chromophores for use in its electro-optic polymer systems and photonic device designs. It also offers electro-optic modulators, which converts data from electric signals to optical signals for transmission over fiber-optic cables; and polymer photonic integrated circuits, a photonic device, which integrates various photonic functions on a single chip. In addition, the company provides the ridge waveguide modulator, a modulator that fabricates the waveguide within a layer of its electro-optic polymer system. It focuses on selling its products to electro-optic device manufacturers, contract manufacturers, original equipment manufacturers, foundries, packaging and assembly manufacturers, etc.; and semiconductor companies, optical network companies, Web 2.0/3.0 media companies, computing companies, telecommunications companies, aerospace companies, automotive companies, and government agencies and defense entities. The company was formerly known as Third-order Nanotechnologies, Inc. and changed its name to Lightwave Logic, Inc. in March 2008. Lightwave Logic, Inc. was founded in 1991 and is headquartered in Englewood, Colorado.

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.