Koppers (NYSE: KOP) and Louisiana-Pacific (NYSE:LPX) are both basic materials companies, but which is the better stock? We will contrast the two companies based on the strength of their earnings, profitability, institutional ownership, analyst recommendations, valuation, dividends and risk.
Louisiana-Pacific pays an annual dividend of $0.52 per share and has a dividend yield of 1.8%. Koppers does not pay a dividend. Louisiana-Pacific pays out 22.3% of its earnings in the form of a dividend.
This table compares Koppers and Louisiana-Pacific’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Earnings and Valuation
This table compares Koppers and Louisiana-Pacific’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Koppers||$1.48 billion||0.57||$29.10 million||$3.68||11.05|
|Louisiana-Pacific||$2.73 billion||1.57||$389.80 million||$2.33||12.68|
Louisiana-Pacific has higher revenue and earnings than Koppers. Koppers is trading at a lower price-to-earnings ratio than Louisiana-Pacific, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Koppers has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500. Comparatively, Louisiana-Pacific has a beta of 1.55, suggesting that its stock price is 55% more volatile than the S&P 500.
This is a breakdown of recent ratings and price targets for Koppers and Louisiana-Pacific, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Koppers currently has a consensus price target of $48.60, suggesting a potential upside of 19.56%. Louisiana-Pacific has a consensus price target of $31.86, suggesting a potential upside of 7.84%. Given Koppers’ stronger consensus rating and higher possible upside, equities analysts plainly believe Koppers is more favorable than Louisiana-Pacific.
Institutional and Insider Ownership
91.9% of Koppers shares are held by institutional investors. Comparatively, 94.6% of Louisiana-Pacific shares are held by institutional investors. 3.9% of Koppers shares are held by insiders. Comparatively, 1.5% of Louisiana-Pacific shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Louisiana-Pacific beats Koppers on 9 of the 16 factors compared between the two stocks.
Koppers Holdings Inc., through its subsidiaries, provides treated wood products, wood treatment chemicals, and carbon compounds in the United States and internationally. The company operates through three segments: Railroad and Utility Products and Services (RUPS), Performance Chemicals (PC), and Carbon Materials and Chemicals (CMC). The RUPS segment procures and treats crossties, switch ties, and various types of lumber used for railroad bridges and crossings. It also provides rail joint bars to join rails together for railroads; transmission and distribution poles for electric and telephone utilities; and pilings. This segment also provides railroad services, such as engineering, design, repair, and inspection services for railroad bridges. The Performance Chemicals segment develops, manufactures, and markets water-based wood preservatives and wood specialty additives, including micronized copper quaternary and micronized copper azole, micronized pigments, alkaline copper quaternary, amine copper azole, and chromated copper arsenate for decking, fencing, utility poles, construction lumber and timbers, and vineyard stakes. The CMC segment manufactures creosote for use in the treatment of wood or as a feedstock in the production of carbon black; carbon pitch, a raw material used in the production of aluminum and steel; naphthalene for use as a feedstock in the production of phthalic anhydride and as a surfactant in the production of concrete; phthalic anhydride for the production of plasticizers, polyester resins, and alkyd paints; and carbon black feedstock for use in the production of carbon black. The company serves the railroad, specialty chemical, utility, residential lumber, agriculture, aluminum, steel, rubber, and construction industries. Koppers Holdings Inc. was founded in 1988 and is headquartered in Pittsburgh, Pennsylvania.
Louisiana-Pacific Corporation, together with its subsidiaries, manufactures building products primarily for use in new home construction, repair and remodeling, and outdoor structures, as well as light industrial and commercial construction applications. It operates through four segments: Siding; North America Oriented Strand Board (OSB); Engineered Wood Products; and South America. The Siding segment offers siding products and related accessories, such as wood-based siding, trim, soffit, and fascia products; and CanExel siding and accessory products, including pre-finished lap and trim products, as well as outdoor building products. The OSB segment manufactures and distributes structural panel products comprising OSBs, TechShield radiant barriers, TopNotch sub-floorings, Legacy super tough products, moisture-resistant sub-floorings, and FlameBlock fire-rated sheathing products. The Engineered Wood Products segment provides laminated veneer lumber, laminated strand lumber, and other related products; and I-joists, which are used principally in residential and commercial floorings, roofing systems, and other structural applications. The South America segment manufactures and distributes OSB and siding products in South America and various export markets. This segment also distributes and sells related products to augment the transition to wood frame construction. The company also offers timber and timberlands, as well as other products and services. Louisiana-Pacific Corporation sells its products, primarily to retail home centers, manufactured housing producers, distributors, and wholesalers in North America and South America, as well as in Asia, Australia, and Europe. The company was founded in 1973 and is headquartered in Nashville, Tennessee.
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