Comparing Koppers (NYSE:KOP) & Johnson Matthey (OTCMKTS:JMPLY)

Koppers (NYSE:KOP) and Johnson Matthey (OTCMKTS:JMPLY) are both basic materials companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, dividends, valuation, earnings, profitability, risk and institutional ownership.

Dividends

Koppers pays an annual dividend of $0.32 per share and has a dividend yield of 1.1%. Johnson Matthey pays an annual dividend of $2.88 per share and has a dividend yield of 5.6%. Koppers pays out 44.4% of its earnings in the form of a dividend. Koppers has increased its dividend for 2 consecutive years.

Valuation & Earnings

This table compares Koppers and Johnson Matthey”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Koppers	$1.99 billion	0.29	$52.40 million	$0.72	40.61
Johnson Matthey	$14.89 billion	0.29	$475.91 million	N/A	N/A

Johnson Matthey has higher revenue and earnings than Koppers.

Profitability

This table compares Koppers and Johnson Matthey’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Koppers	0.76%	17.43%	4.65%
Johnson Matthey	N/A	N/A	N/A

Volatility & Risk

Koppers has a beta of 1.4, indicating that its stock price is 40% more volatile than the S&P 500. Comparatively, Johnson Matthey has a beta of 1.03, indicating that its stock price is 3% more volatile than the S&P 500.

Institutional & Insider Ownership

92.8% of Koppers shares are owned by institutional investors. 6.9% of Koppers shares are owned by company 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 recent recommendations for Koppers and Johnson Matthey, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Koppers	0	0	2	1	3.33
Johnson Matthey	0	2	0	0	2.00

Koppers presently has a consensus target price of $52.50, suggesting a potential upside of 79.55%. Given Koppers’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Koppers is more favorable than Johnson Matthey.

Summary

Koppers beats Johnson Matthey on 11 of the 16 factors compared between the two stocks.

About Koppers

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 Railroad and Utility Products and Services (RUPS), Performance Chemicals (PC), and Carbon Materials and Chemicals (CMC) segments. 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 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. It serves the railroad, specialty chemical, utility, residential lumber, agriculture, aluminum, steel, rubber, and construction sectors. Koppers Holdings Inc. was founded in 1988 and is based in Pittsburgh, Pennsylvania.

About Johnson Matthey

Johnson Matthey is a global leader in science that enables a cleaner and healthier world. With over 200 years of sustained commitment to innovation and technological breakthroughs, they improve the function, performance and safety of their customers’ products. Their science has a global impact in areas such as low emission transport, pharmaceuticals, chemical processing and making the most efficient use of the planet’s natural resources. Today more than 13,000 Johnson Matthey professionals collaborate with their network of customers and partners to make a real difference to the world around us.