Koppers Holdings (NYSE: KOP) and PQ Group Holdings (NYSE:PQG) are both small-cap basic materials companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.

Institutional & Insider Ownership

87.8% of Koppers Holdings shares are owned by institutional investors. Comparatively, 54.2% of PQ Group Holdings shares are owned by institutional investors. 3.9% of Koppers Holdings shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and target prices for Koppers Holdings and PQ Group Holdings, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Koppers Holdings 0 1 3 0 2.75
PQ Group Holdings 0 3 7 0 2.70

Koppers Holdings currently has a consensus target price of $45.75, suggesting a potential downside of 5.77%. PQ Group Holdings has a consensus target price of $19.85, suggesting a potential upside of 21.04%. Given PQ Group Holdings’ higher probable upside, analysts clearly believe PQ Group Holdings is more favorable than Koppers Holdings.

Profitability

This table compares Koppers Holdings and PQ Group Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Koppers Holdings 3.02% 153.51% 6.24%
PQ Group Holdings N/A N/A N/A

Valuation and Earnings

This table compares Koppers Holdings and PQ Group Holdings’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Koppers Holdings $1.41 billion 0.71 $169.90 million $1.98 24.52
PQ Group Holdings N/A N/A N/A N/A N/A

Koppers Holdings has higher revenue and earnings than PQ Group Holdings.

Summary

Koppers Holdings beats PQ Group Holdings on 7 of the 9 factors compared between the two stocks.

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.

PQ Group Holdings Company Profile

PQ Group Holdings Inc is a global provider of catalysts, specialty materials, chemicals and services that enable environmental improvements. The Company’s products and solutions help companies produce vehicles with fuel efficiency. The Company has developed zeolite-based catalysts to reduce pollutants in diesel engines. The Company’s segments include environmental catalysts and services, and performance materials and chemicals. Environmental catalysts and services segment has three product groups, including silica catalysts, zeolite catalysts, and refining services. Silica catalysts product group sells both the finished catalyst and catalysts supports, for the production of high-density polyethylene (HDPE).zeolite catalysts product group is a supplier of emissions control catalysts as well as a supplier of specialty catalysts, precursors, and formulations. Performance materials and chemicals segment has two product groups, including performance materials and performance chemicals.

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