Koppers (NYSE:KOP) & Svenska Cellulosa Aktiebolaget SCA (publ) (OTC:SCABY) Critical Analysis

Koppers (NYSE:KOPGet Rating) and Svenska Cellulosa Aktiebolaget SCA (publ) (OTC:SCABYGet Rating) are both basic materials companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, profitability, valuation, analyst recommendations, dividends, earnings and risk.

Profitability

This table compares Koppers and Svenska Cellulosa Aktiebolaget SCA (publ)’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Koppers 4.51% 21.69% 5.33%
Svenska Cellulosa Aktiebolaget SCA (publ) N/A N/A N/A

Institutional and Insider Ownership

90.1% of Koppers shares are held by institutional investors. 6.2% of Koppers shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Earnings & Valuation

This table compares Koppers and Svenska Cellulosa Aktiebolaget SCA (publ)’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Koppers $1.68 billion 0.32 $85.20 million $3.57 7.03
Svenska Cellulosa Aktiebolaget SCA (publ) N/A N/A N/A N/A N/A

Koppers has higher revenue and earnings than Svenska Cellulosa Aktiebolaget SCA (publ).

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Koppers and Svenska Cellulosa Aktiebolaget SCA (publ), as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Koppers 0 0 1 0 3.00
Svenska Cellulosa Aktiebolaget SCA (publ) 0 0 0 0 N/A

Koppers presently has a consensus price target of $41.00, suggesting a potential upside of 63.48%. Given Koppers’ higher possible upside, equities analysts clearly believe Koppers is more favorable than Svenska Cellulosa Aktiebolaget SCA (publ).

Summary

Koppers beats Svenska Cellulosa Aktiebolaget SCA (publ) on 8 of the 8 factors compared between the two stocks.

About Koppers (Get Rating)

Koppers Holdings Inc. provides treated wood products, wood preservation chemicals, and carbon compounds in the United States, Australasia, Europe, and internationally. The company operates through three segments: Railroad and Utility Products and Services (RUPS), Performance Chemicals (PC), and Carbon Materials and Chemicals (CMC). The RUPS segment procures and treats crossties, switch ties, and various types of lumber used for railroad bridges and crossings. It also provides rail joint bars to join rails together for railroads; transmission and distribution poles for electric and telephone utilities; and pilings. This segment also provides railroad services, such as engineering, design, repair, and inspection services for railroad bridges. The PC segment develops, manufactures, and markets copper-based wood preservatives, including micronized copper azole, micronized pigments, alkaline copper quaternary, amine copper azole, and chromated copper arsenate for decking, fencing, utility poles, construction lumber and timbers, and various agricultural uses; and supplies fire-retardant chemicals for pressure treatment of wood primarily in commercial construction. The CMC segment manufactures creosote for the treatment of wood or as a feedstock in the production of carbon black; carbon pitch, a raw material used in the production of aluminum and steel; naphthalene for use as a feedstock in the production of phthalic anhydride and as a surfactant in the production of concrete; phthalic anhydride for the production of plasticizers, polyester resins, and alkyd paints; and carbon black feedstock for use in the production of carbon black. The company serves the railroad, specialty chemical, utility, residential lumber, agriculture, aluminum, steel, rubber, and construction industries. Koppers Holdings Inc. was founded in 1988 and is headquartered in Pittsburgh, Pennsylvania.

About Svenska Cellulosa Aktiebolaget SCA (publ) (Get Rating)

Svenska Cellulosa Aktiebolaget SCA (publ), a forest products company, develops, produces, and sells forest, wood, pulp, and containerboard products. The company offers various wood products, industrial components, standard wood products, and raw materials, as well as logistic, warehouse, and IT solutions for the wood industry. It also provides pulp products under the Pure, Star, and Cirrus names; and Kraftliner products for consumer durables, electronics, hazardous goods, industrial products, fruit and vegetables, frozen foods, etc. In addition, the company offers forwarding services for various transport modes, such as truck, rail, and barge, as well as marine and road and rail transport; terminal services; and liquid and solid biofuels, pellets, stall pellets, and wind energy. Further, it engages in the processing and distribution of wood products; production of Kraft and chemical thermomechanical pulps, and containerboards; and generation of energy from wind power projects, biomass, and by-products. The company has operation in Sweden, the United States, the United Kingdom, Germany, rest of Europe, Asia, and internationally. Svenska Cellulosa Aktiebolaget SCA (publ) was founded in 1929 and is headquartered in Sundsvall, Sweden.

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