Koppers Holdings (KOP) & Air Products and Chemicals (APD) Financial Comparison
Koppers Holdings (NYSE: KOP) and Air Products and Chemicals (NYSE:APD) are both basic materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, earnings, profitability, institutional ownership, valuation and risk.
Risk & Volatility
Koppers Holdings has a beta of 0.97, suggesting that its stock price is 3% less volatile than the S&P 500. Comparatively, Air Products and Chemicals has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500.
Air Products and Chemicals pays an annual dividend of $3.80 per share and has a dividend yield of 2.6%. Koppers Holdings does not pay a dividend. Air Products and Chemicals pays out 28.5% of its earnings in the form of a dividend. Koppers Holdings has raised its dividend for 5 consecutive years and Air Products and Chemicals has raised its dividend for 34 consecutive years.
This is a summary of recent ratings and recommmendations for Koppers Holdings and Air Products and Chemicals, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Air Products and Chemicals||1||6||5||0||2.33|
Koppers Holdings presently has a consensus target price of $45.75, suggesting a potential upside of 20.08%. Air Products and Chemicals has a consensus target price of $152.83, suggesting a potential upside of 4.67%. Given Koppers Holdings’ stronger consensus rating and higher probable upside, equities analysts clearly believe Koppers Holdings is more favorable than Air Products and Chemicals.
Earnings and Valuation
This table compares Koppers Holdings and Air Products and Chemicals’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Koppers Holdings||$1.41 billion||0.56||$169.90 million||$1.98||19.24|
|Air Products and Chemicals||$9.95 billion||3.20||$3.18 billion||$13.33||10.95|
Air Products and Chemicals has higher revenue and earnings than Koppers Holdings. Air Products and Chemicals 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 table compares Koppers Holdings and Air Products and Chemicals’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Air Products and Chemicals||34.63%||17.23%||8.25%|
Insider and Institutional Ownership
90.7% of Koppers Holdings shares are held by institutional investors. Comparatively, 88.8% of Air Products and Chemicals shares are held by institutional investors. 3.9% of Koppers Holdings shares are held by insiders. Comparatively, 0.4% of Air Products and Chemicals shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Air Products and Chemicals beats Koppers Holdings on 11 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 Air Products and Chemicals
Air Products and Chemicals, Inc., is an industrial gases company. The Company’s Industrial Gases business provides atmospheric and process gases and related equipment to manufacturing markets, including refining and petrochemical, metals, electronics, and food and beverage. The Company is also a supplier of liquefied natural gas process technology and equipment. The Company operates through five segments: Industrial Gases-Americas, Industrial Gases-Europe, Middle East, and Africa (EMEA), Industrial Gases-Asia, Industrial Gases-Global, and Corporate and other.
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