Critical Comparison: Loop Industries (NASDAQ:LOOP) and Akzo Nobel (OTCMKTS:AKZOY)

Loop Industries (NASDAQ:LOOP) and Akzo Nobel (OTCMKTS:AKZOY) are both materials companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, dividends, profitability, analyst recommendations, valuation, earnings and institutional ownership.

Volatility and Risk

Loop Industries has a beta of 1.54, meaning that its share price is 54% more volatile than the S&P 500. Comparatively, Akzo Nobel has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current recommendations for Loop Industries and Akzo Nobel, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Loop Industries	0	1	0	0	2.00
Akzo Nobel	1	5	2	0	2.12

Valuation and Earnings

This table compares Loop Industries and Akzo Nobel”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Loop Industries	$510,000.00	21.82	-$12.30 million	($0.25)	-0.91
Akzo Nobel	$11.49 billion	1.04	$718.44 million	$1.47	15.78

Akzo Nobel has higher revenue and earnings than Loop Industries. Loop Industries is trading at a lower price-to-earnings ratio than Akzo Nobel, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

4.9% of Loop Industries shares are held by institutional investors. Comparatively, 0.4% of Akzo Nobel shares are held by institutional investors. 49.7% of Loop Industries shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Loop Industries and Akzo Nobel’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Loop Industries	-2,154.12%	N/A	-146.03%
Akzo Nobel	6.71%	12.18%	3.94%

Summary

Akzo Nobel beats Loop Industries on 9 of the 13 factors compared between the two stocks.

About Loop Industries

Loop Industries, Inc. is a Montreal, Quebec-based technology company focused on advancing the circular economy for plastics. The company has developed a patented technology designed to break down waste polyethylene terephthalate (PET) and polyester fiber into their basic building-block chemicals, which can then be used to manufacture new PET plastic and polyester products. Loop’s process is intended to handle PET waste that may be difficult to recycle through conventional mechanical methods, including materials that are colored, contaminated, or otherwise unsuitable for traditional recycling.

About Akzo Nobel

AkzoNobel is a Netherlands-based company that develops and manufactures paints and coatings for residential, commercial, industrial and transportation uses. Its products include decorative paints, protective coatings, marine coatings and powder coatings, sold under brands such as Dulux, Sikkens, International and Interpon. The company serves customers in markets around the world, including homeowners, contractors, manufacturers and businesses. Its history includes the Dutch paintmaker Sikkens, founded in 1792; AkzoNobel was formed in 1994 through the merger of Akzo and Nobel Industries.