Alcoa vs Westlake

This page compares Alcoa and Westlake, examining their business models, financial performance, and market context. It offers neutral analysis of each company’s strategy, operations, and competitive environment to help readers understand how they fit within the broader materials and chemicals sectors. Educational content, not financial advice.

This page compares Alcoa and Westlake, examining their business models, financial performance, and market context. It offers neutral analysis of each company’s strategy, operations, and competitive en...

Comparison Snapshot

Key Financial Metrics

AA

Metric

WLK

$16.09B

Market Cap

$10.76B

-26.73%

Potential Profit

-4.94%

Buy

Analyst Rating

Buy

Investment Analysis

Alcoa

AA

Pros

Alcoa maintains a strong market position in bauxite mining and aluminum production with global operations and diversified revenue streams.
The company shows solid profitability with a 5.8% net profit margin and an excellent return on equity around 18.5%, indicating effective management.
Alcoa's relatively low price-to-earnings ratio (~8.5 trailing) suggests a potentially undervalued stock compared to peers in the materials sector.

Considerations

Third-quarter 2025 earnings declined 14% due to the impact of US tariffs despite favourable aluminium prices, highlighting regulatory exposure risks.
The stock exhibits high volatility with a beta near 2.0, implying significant sensitivity to market and commodity price fluctuations.
Price forecasts indicate a potential near-term downside of around 5%, reflecting cautious market sentiment and challenges in sustaining growth.

Westlake

WLK

Pros

Westlake operates globally with approximately 16,000 employees, indicating substantial scale and diverse market presence in chemicals and building materials.
The company’s integration across manufacturing segments supports operational efficiencies and potential for steady cash flow generation.
Westlake’s exposure to building and industrial markets offers growth opportunities aligned with infrastructure and construction trends.

Considerations

As a chemical and materials producer, Westlake faces cyclicality risks linked to economic cycles and commodity price volatility.
Limited publicly available recent financial details increase uncertainty around current profitability and balance sheet strength.
Competitive pressures from larger diversified chemical and materials companies may constrain market share expansion and margin improvement.

About The Companies

Alcoa (AA)

Alcoa Inc. (ticker: AA) is a major integrated producer of aluminium, spanning bauxite mining, alumina refining and primary aluminium smelting. Investors should know Alcoa’s results are closely tied to global aluminium prices, energy costs and industrial demand from packaging, automotive and aerospace sectors. The company runs energy‑intensive smelters, so electricity prices and carbon regulation materially affect margins; initiatives to decarbonise and secure low‑cost renewable power are strategic priorities. Capital spending, capacity utilisation and inventory cycles can drive short‑term volatility, while longer‑term trends such as lightweighting in transport and electrification support structural demand. With a market capitalisation near $9.6bn, Alcoa sits in the mid‑cap range where commodity cycles and operational risks can produce wider swings in returns. Key things to watch are aluminium prices, production guidance, margins and free cash flow. This is educational information only and not personalised investment advice — values can fall as well as rise and suitability depends on individual circumstances.

Westlake (WLK)

Westlake Corp. is a global manufacturer and supplier of materials and products used in daily life. Headquartered in Houston, Texas, the company operates across North America, Europe, and Asia. Its business is divided into two primary segments: 'Performance and Essential Materials', which includes chemicals like vinyls, olefins, and polyethylene, and 'Housing and Infrastructure Products', which covers items like pipes, fittings, and building products. These materials are fundamental to a wide range of markets, from housing and construction to packaging, healthcare, and automotive components. For investors, Westlake represents a key player in the basic materials supply chain. However, as with any company in this sector, its performance can be influenced by global economic cycles and raw material costs, and past performance is not a guarantee of future results.

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Comparison Snapshot