Head to Head Analysis: Koppers Holdings (KOP) versus Quaker Chemical Corporation (KWR)

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

Valuation & Earnings

This table compares Koppers Holdings and Quaker Chemical Corporation’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Koppers Holdings $1.41 billion 0.70 $169.90 million $1.98 24.04
Quaker Chemical Corporation $777.77 million 2.56 $106.55 million $3.93 38.10

Koppers Holdings has higher revenue and earnings than Quaker Chemical Corporation. Koppers Holdings is trading at a lower price-to-earnings ratio than Quaker Chemical Corporation, indicating that it is currently the more affordable of the two stocks.

Dividends

Quaker Chemical Corporation pays an annual dividend of $1.42 per share and has a dividend yield of 0.9%. Koppers Holdings does not pay a dividend. Quaker Chemical Corporation pays out 36.1% of its earnings in the form of a dividend. Koppers Holdings has increased its dividend for 5 consecutive years and Quaker Chemical Corporation has increased its dividend for 7 consecutive years.

Profitability

This table compares Koppers Holdings and Quaker Chemical Corporation’s 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%
Quaker Chemical Corporation 6.73% 15.52% 9.26%

Analyst Ratings

This is a breakdown of recent ratings and price targets for Koppers Holdings and Quaker Chemical Corporation, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Koppers Holdings 0 1 3 0 2.75
Quaker Chemical Corporation 0 1 0 0 2.00

Koppers Holdings currently has a consensus price target of $45.75, indicating a potential downside of 3.89%. Quaker Chemical Corporation has a consensus price target of $153.00, indicating a potential upside of 2.17%. Given Quaker Chemical Corporation’s higher possible upside, analysts clearly believe Quaker Chemical Corporation is more favorable than Koppers Holdings.

Institutional & Insider Ownership

87.9% of Koppers Holdings shares are held by institutional investors. Comparatively, 82.8% of Quaker Chemical Corporation shares are held by institutional investors. 3.9% of Koppers Holdings shares are held by company insiders. Comparatively, 3.6% of Quaker Chemical Corporation shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Volatility and Risk

Koppers Holdings has a beta of 0.98, suggesting that its share price is 2% less volatile than the S&P 500. Comparatively, Quaker Chemical Corporation has a beta of 1.24, suggesting that its share price is 24% more volatile than the S&P 500.

Summary

Quaker Chemical Corporation beats Koppers Holdings on 9 of the 17 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.

Quaker Chemical Corporation Company Profile

Quaker Chemical Corporation is a provider of process fluids, chemical specialties, and technical expertise to a range of industries, including steel, aluminum, mining, aerospace, tube and pipe, cans and others. The Company’s segments include North America, Europe, Middle East and Africa (EMEA), Asia/Pacific and South America. It develops, produces, and markets a range of formulated chemical specialty products and offers chemical management services. Its products and services include rolling lubricants (used by manufacturers of steel in the hot and cold rolling of steel and by manufacturers of aluminum in the hot rolling of aluminum); machining and grinding compounds (used by metalworking customers in cutting, shaping, and grinding metal parts, which require special treatment to enable them to tolerate the manufacturing process, achieve closer tolerance, and improve tool life), and hydraulic fluids (used by steel, metalworking, and other customers to operate hydraulic equipment).

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