Financial Contrast: CSW Industrials (CSWI) vs. Koppers Holdings (KOP)

CSW Industrials (NASDAQ: CSWI) and Koppers Holdings (NYSE:KOP) are both small-cap basic materials companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.

Risk and Volatility

CSW Industrials has a beta of 1.36, indicating that its stock price is 36% more volatile than the S&P 500. Comparatively, Koppers Holdings has a beta of 0.98, indicating that its stock price is 2% less volatile than the S&P 500.

Valuation and Earnings

This table compares CSW Industrials and Koppers Holdings’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
CSW Industrials $341.00 million 2.32 $58.23 million $0.98 50.87
Koppers Holdings $1.41 billion 0.72 $169.90 million $1.98 24.60

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

Institutional and Insider Ownership

69.5% of CSW Industrials shares are owned by institutional investors. Comparatively, 88.0% of Koppers Holdings shares are owned by institutional investors. 2.1% of CSW Industrials shares are owned by company insiders. Comparatively, 3.9% of Koppers Holdings shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares CSW Industrials and Koppers Holdings’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
CSW Industrials 4.54% 10.53% 7.39%
Koppers Holdings 3.02% 153.51% 6.24%

Analyst Recommendations

This is a breakdown of recent recommendations for CSW Industrials and Koppers Holdings, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
CSW Industrials 0 0 1 0 3.00
Koppers Holdings 0 1 3 0 2.75

Koppers Holdings has a consensus target price of $45.75, indicating a potential downside of 6.06%. Given Koppers Holdings’ higher probable upside, analysts clearly believe Koppers Holdings is more favorable than CSW Industrials.

Summary

Koppers Holdings beats CSW Industrials on 8 of the 14 factors compared between the two stocks.

CSW Industrials Company Profile

CSW Industrials, Inc. (CSWI) is a diversified industrial growth company. The Company operates through three segments: Industrial Products; Coatings, Sealants & Adhesives, and Specialty Chemicals. The Industrial Products segment consists of specialty mechanical products; fire and smoke protection products; architecturally specified building products, and storage, filtration and application equipment. The Coatings, Sealants & Adhesives segment comprises coatings and penetrants, pipe thread sealants, firestopping sealants, and caulks and adhesives/solvent cements. The Specialty Chemicals segment manufactures and supplies specialized consumables that impart or enhance properties, such as lubricity, anti-seize qualities, friction and heat control. Markets that it serves include HVAC, industrial, rail, plumbing, architecturally specified building products, energy, mining and other general industrial markets.

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.

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