Comparing Westlake (NYSE:WLK) and Golden Arrow Merger (NASDAQ:GAMC)

Westlake (NYSE:WLK) and Golden Arrow Merger (NASDAQ:GAMC) are both basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, valuation, analyst recommendations, dividends, institutional ownership, risk and earnings.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Westlake and Golden Arrow Merger, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Westlake	1	8	5	0	2.29
Golden Arrow Merger	0	0	0	0	N/A

Westlake currently has a consensus target price of $165.50, indicating a potential upside of 15.19%. Given Westlake’s higher probable upside, equities analysts plainly believe Westlake is more favorable than Golden Arrow Merger.

Insider and Institutional Ownership

28.4% of Westlake shares are held by institutional investors. Comparatively, 5.5% of Golden Arrow Merger shares are held by institutional investors. 74.1% of Westlake shares are held by company insiders. Comparatively, 77.4% of Golden Arrow Merger shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Westlake and Golden Arrow Merger’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Westlake	$12.55 billion	1.47	$479.00 million	$1.99	72.20
Golden Arrow Merger	N/A	N/A	-$1.47 million	N/A	N/A

Westlake has higher revenue and earnings than Golden Arrow Merger.

Volatility & Risk

Westlake has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500. Comparatively, Golden Arrow Merger has a beta of 0.01, meaning that its share price is 99% less volatile than the S&P 500.

Profitability

This table compares Westlake and Golden Arrow Merger’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Westlake	2.27%	7.84%	4.08%
Golden Arrow Merger	N/A	N/A	-24.61%

Summary

Westlake beats Golden Arrow Merger on 9 of the 10 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 Golden Arrow Merger

Golden Arrow Merger Corp. does not have significant operations. The company intends to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses. It focuses on acquiring companies in the healthcare and healthcare-related infrastructure industries in the United States and other developed countries. The company was incorporated in 2020 and is based in New York, New York. Golden Arrow Merger Corp. is a subsidiary of Golden Arrow Sponsor, LLC.