Analyzing BPM (OTCMKTS:BPMI) & Louisiana-Pacific (NYSE:LPX)

BPM (OTCMKTS:BPMI) and Louisiana-Pacific (NYSE:LPX) are both materials companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, profitability, institutional ownership, risk, dividends and earnings.

Profitability

This table compares BPM and Louisiana-Pacific’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
BPM	N/A	N/A	N/A
Louisiana-Pacific	2.19%	4.67%	3.10%

Institutional and Insider Ownership

94.7% of Louisiana-Pacific shares are held by institutional investors. 9.7% of BPM shares are held by company insiders. Comparatively, 0.7% of Louisiana-Pacific shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares BPM and Louisiana-Pacific”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BPM	N/A	N/A	N/A	N/A	N/A
Louisiana-Pacific	$2.71 billion	1.91	$146.00 million	$0.79	93.40

Louisiana-Pacific has higher revenue and earnings than BPM.

Analyst Ratings

This is a summary of current recommendations for BPM and Louisiana-Pacific, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BPM	0	0	0	0	0.00
Louisiana-Pacific	2	1	11	0	2.64

Louisiana-Pacific has a consensus target price of $94.00, suggesting a potential upside of 27.39%. Given Louisiana-Pacific’s stronger consensus rating and higher probable upside, analysts clearly believe Louisiana-Pacific is more favorable than BPM.

Summary

Louisiana-Pacific beats BPM on 8 of the 9 factors compared between the two stocks.

About BPM

BPM Inc. manufactures machine glazed papers for confectionery and candy wrap, dairy, meat, poultry, bakery, and food wraps markets. The company offers converted materials; custom web, toll printing, converting, and rewinding services; and post-consumer recycled fine papers for commercial printing, offices, schools, and business applications. It also provides uncoated fine papers; flexible packaging papers; wet waxed papers; and interleaver papers, taffy wraps, overwraps, and confectionery wraps. The company was founded in 1929 and is based in Peshtigo, Wisconsin.

About Louisiana-Pacific

Louisiana-Pacific Corporation, together with its subsidiaries, provides building solutions primarily for use in new home construction, repair and remodeling, and outdoor structure markets. It operates through Siding, Oriented Strand Board, LP South America, and Other segments. The Siding segment offers LP SmartSide trim and siding products, LP SmartSide ExpertFinish trim and siding products, LP BuilderSeries lap siding products, and LP Outdoor Building Solutions; and engineered wood siding, trim, soffit, and fascia products. Its Oriented Strand Board segment manufactures and distributes oriented strand board structural panel products comprising LP TechShield radiant barriers, LP WeatherLogic air and water barriers, LP Legacy premium sub-flooring products, LP NovaCore, LP FlameBlock fire-rated sheathing products, and LP TopNotch sub-flooring products. The LP South America segment manufactures and distributes oriented strand board structural panel and siding products. This segment distributes and sells related products for the region's transition to wood frame construction. It offers timber and timberlands and other products and services. sells its products primarily to retailers, wholesalers, and homebuilding and industrial businesses in North America and South America, Asia, Australia, and Europe. The company was incorporated in 1972 and is headquartered in Nashville, Tennessee.