Critical Comparison: UFP Technologies (UFPT) & Koppers Holdings (KOP)
Koppers Holdings (NYSE: KOP) and UFP Technologies (NASDAQ:UFPT) are both small-cap basic materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, institutional ownership, earnings, valuation, profitability, analyst recommendations and risk.
Insider & Institutional Ownership
87.9% of Koppers Holdings shares are owned by institutional investors. Comparatively, 68.2% of UFP Technologies shares are owned by institutional investors. 3.9% of Koppers Holdings shares are owned by company insiders. Comparatively, 13.3% of UFP Technologies shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Valuation and Earnings
This table compares Koppers Holdings and UFP Technologies’ top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Koppers Holdings||$1.41 billion||0.69||$169.90 million||$1.98||23.71|
|UFP Technologies||$148.67 million||1.41||$17.67 million||$1.23||23.37|
Koppers Holdings has higher revenue and earnings than UFP Technologies. UFP Technologies is trading at a lower price-to-earnings ratio than Koppers Holdings, indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and target prices for Koppers Holdings and UFP Technologies, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Koppers Holdings presently has a consensus price target of $45.75, suggesting a potential downside of 2.56%. Given Koppers Holdings’ higher possible upside, equities research analysts clearly believe Koppers Holdings is more favorable than UFP Technologies.
Volatility & Risk
Koppers Holdings has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500. Comparatively, UFP Technologies has a beta of 0.19, meaning that its stock price is 81% less volatile than the S&P 500.
This table compares Koppers Holdings and UFP Technologies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Koppers Holdings beats UFP Technologies on 9 of the 13 factors compared between the two stocks.
About Koppers Holdings
Koppers Holdings Inc. is a global integrated provider of treated wood products, wood treatment chemicals and carbon compounds. The Company operates through three segments: Railroad and Utility Products and Services (RUPS), Carbon Materials and Chemicals (CMC) and Performance Chemicals (PC). The RUPS business sells treated and untreated wood products, rail joint bars and services primarily to the railroad markets. The primary products supplied by PC business are copper-based wood preservatives, including micronized copper quaternary and micronized copper azole (MicroPro), micronized pigments (MicroShades) and chromated copper arsenate. Through CMC business, the Company processes coal tar into a range of products, including carbon pitch, creosote and carbon black feedstock. Its products and services are used in a range of markets, including the railroad, specialty chemical, utility, residential lumber, agriculture, aluminum, steel, rubber and construction industries.
About UFP Technologies
UFP Technologies, Inc. is a designer and custom converter of foams, plastics, composites and natural fiber materials. The Company is engaged in providing solutions to customers primarily within the medical, automotive, consumer, electronics, industrial, and aerospace and defense markets. It converts these materials using laminating, molding, and fabricating manufacturing technologies. The Company’s raw materials consist of polyethylene and polyurethane foams, sheet plastics, pulp fiber, cross-linked polyethylene and reticulated polyurethane foams, fabric and foam laminates, and natural fiber materials. The Company converts these materials to provide customers various solutions, including automotive interior trim, medical device components, disposable wound care components, military uniform and gear components, athletic padding, air filtration, high-temperature insulation, abrasive nail files and other beauty aids, and cushion packaging for their products.
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