Financial Survey: Lenzing Aktiengesellschaft (OTCMKTS:LNZNF) versus Culp (NYSE:CULP)

Lenzing Aktiengesellschaft (OTCMKTS:LNZNF) and Culp (NYSE:CULP) are both consumer cyclical companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, analyst recommendations, institutional ownership, risk, earnings, valuation and dividends.

Insider and Institutional Ownership

11.0% of Lenzing Aktiengesellschaft shares are owned by institutional investors. Comparatively, 75.1% of Culp shares are owned by institutional investors. 6.6% of Culp shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a summary of current recommendations and price targets for Lenzing Aktiengesellschaft and Culp, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lenzing Aktiengesellschaft	0	1	0	0	2.00
Culp	0	0	0	0	N/A

Earnings & Valuation

This table compares Lenzing Aktiengesellschaft and Culp’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lenzing Aktiengesellschaft	N/A	N/A	N/A	$0.36	92.69
Culp	$234.93 million	0.24	-$31.52 million	($1.10)	-4.05

Lenzing Aktiengesellschaft has higher earnings, but lower revenue than Culp. Culp is trading at a lower price-to-earnings ratio than Lenzing Aktiengesellschaft, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Lenzing Aktiengesellschaft and Culp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lenzing Aktiengesellschaft	N/A	N/A	N/A
Culp	-5.75%	-15.58%	-9.13%

Summary

Lenzing Aktiengesellschaft beats Culp on 5 of the 8 factors compared between the two stocks.

About Lenzing Aktiengesellschaft

Lenzing Aktiengesellschaft, together with its subsidiaries, produces and markets wood-based cellulosic fibers for the textile and nonwoven sectors, and industrial applications. The company operates through Division Fiber, Division Pulp, and Others segments. It offers lyocell and modal fibers for applications in textiles products, such as denim, activewear, and lingerie and underwear; hygiene articles, which include baby wipes, facial sheet masks, and surface cleaning; and protective wear, engineered products, and packaging products under the LENZING, TENCEL, VEOCEL, and LENZING ECOVERO brand names. The company also provides biorefinery products comprising acetic acid biobased, furfural biobased, magnesium lignosulphonate biobased, soda ash, sodium sulphate, and xylose. It also engages in the training and personnel development activities. The company operates in Austria; rest of Europe; Asia; North, Central, and South America; and internationally. Lenzing Aktiengesellschaft was formerly known as Chemiefaser Lenzing AG and changed its name to Lenzing Aktiengesellschaft in 1984. The company was founded in 1892 and is headquartered in Lenzing, Austria.

About Culp

Culp, Inc. manufactures, sources, markets, and sells mattress fabrics, sewn covers, and cut and sewn kits for use in mattresses, foundations, and other bedding products in the United States, North America, the Far East, Asia, and internationally. It operates in two segments, Mattress Fabrics and Upholstery Fabrics. The Mattress Fabrics segment offers woven jacquard, knitted, and converted fabrics for use in the production of bedding products, including mattresses, box springs, foundations, and top of bed components. The Upholstery Fabrics segment provides jacquard woven fabrics, velvets, micro denier suedes, woven dobbies, knitted fabrics, piece-dyed woven products, and polyurethane fabrics for use in the production of residential and commercial upholstered furniture, such as sofas, recliners, loveseats, chairs, sectionals, and sofa-beds, as well as office seating and window treatment products; and installation services for customers in the hospitality and commercial industries. Culp, Inc. was incorporated in 1972 and is headquartered in High Point, North Carolina.