UFP Technologies (NASDAQ: UFPT) and Koppers Holdings (NYSE:KOP) are both small-cap industrial products companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, risk, dividends, analyst recommendations, profitability, earnings and valuation.

Valuation & Earnings

This table compares UFP Technologies and Koppers Holdings’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
UFP Technologies $148.67 million 1.48 $17.67 million $1.23 24.59
Koppers Holdings $1.41 billion 0.72 $169.90 million $1.98 24.70

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.

Risk & Volatility

UFP Technologies has a beta of 0.2, meaning that its stock price is 80% less volatile than the S&P 500. Comparatively, Koppers Holdings has a beta of 0.98, meaning that its stock price is 2% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for UFP Technologies and Koppers Holdings, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
UFP Technologies 0 0 0 0 N/A
Koppers Holdings 0 1 3 0 2.75

Koppers Holdings has a consensus target price of $45.75, suggesting a potential downside of 6.44%. Given Koppers Holdings’ higher possible upside, analysts plainly believe Koppers Holdings is more favorable than UFP Technologies.

Institutional & Insider Ownership

68.2% of UFP Technologies shares are held by institutional investors. Comparatively, 87.9% of Koppers Holdings shares are held by institutional investors. 13.3% of UFP Technologies shares are held by company insiders. Comparatively, 3.9% of Koppers Holdings shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares UFP Technologies and Koppers Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
UFP Technologies 6.03% 6.86% 6.04%
Koppers Holdings 3.02% 153.51% 6.24%

Summary

Koppers Holdings beats UFP Technologies on 9 of the 13 factors compared between the two stocks.

UFP Technologies Company Profile

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.

Koppers Holdings Company Profile

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.

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