Koppers Holdings (KOP) & Chemours Company (The) (CC) Critical Contrast
Koppers Holdings (NYSE: KOP) and Chemours Company (The) (NYSE:CC) are both basic materials companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitabiliy, dividends, analyst recommendations, earnings, institutional ownership and risk.
Chemours Company (The) pays an annual dividend of $0.12 per share and has a dividend yield of 0.3%. Koppers Holdings does not pay a dividend. Chemours Company (The) pays out 22.2% of its earnings in the form of a dividend. Chemours Company (The) has raised its dividend for 5 consecutive years.
Earnings & Valuation
This table compares Koppers Holdings and Chemours Company (The)’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Koppers Holdings||$1.42 billion||0.55||$169.60 million||$1.65||22.76|
|Chemours Company (The)||$5.54 billion||1.50||$884.00 million||$0.54||83.37|
Chemours Company (The) has higher revenue and earnings than Koppers Holdings. Koppers Holdings is trading at a lower price-to-earnings ratio than Chemours Company (The), indicating that it is currently the more affordable of the two stocks.
This is a summary of current ratings and price targets for Koppers Holdings and Chemours Company (The), as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Chemours Company (The)||0||0||6||0||3.00|
Koppers Holdings presently has a consensus target price of $45.75, indicating a potential upside of 21.84%. Chemours Company (The) has a consensus target price of $40.00, indicating a potential downside of 11.15%. Given Koppers Holdings’ higher probable upside, analysts plainly believe Koppers Holdings is more favorable than Chemours Company (The).
Institutional and Insider Ownership
89.8% of Koppers Holdings shares are held by institutional investors. Comparatively, 74.9% of Chemours Company (The) shares are held by institutional investors. 3.9% of Koppers Holdings shares are held by insiders. Comparatively, 1.1% of Chemours Company (The) shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Risk and Volatility
Koppers Holdings has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500. Comparatively, Chemours Company (The) has a beta of 3.57, suggesting that its stock price is 257% more volatile than the S&P 500.
This table compares Koppers Holdings and Chemours Company (The)’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Chemours Company (The)||1.91%||125.69%||5.12%|
Chemours Company (The) beats Koppers Holdings on 9 of the 17 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 Chemours Company (The)
The Chemours Company is a provider of performance chemicals. The Company operates through three segments: Titanium Technologies, Fluoroproducts and Chemical Solutions. The Titanium Technologies segment is a producer of titanium dioxide (TiO2). The Fluoroproducts segment is a provider of fluoroproducts, including refrigerants and industrial fluoropolymer resins. The Chemical Solutions segment is a North American provider of industrial chemicals used in gold production, oil and gas, water treatment and other industries. It delivers customized solutions with a range of industrial and specialty chemical products for markets, including plastics and coatings, refrigeration and air conditioning, industrial, mining and oil refining. Its products include titanium dioxide, refrigerants, industrial fluoropolymer resins and a portfolio of mining and industrial chemicals, including sodium cyanide. As of December 31, 2016, the Company operates 26 production facilities located in 10 countries.
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