Louisiana-Pacific (NYSE:LPX) & Holmen AB (publ) (OTCMKTS:HLMNY) Financial Contrast

Holmen AB (publ) (OTCMKTS:HLMNY) and Louisiana-Pacific (NYSE:LPX) are both materials companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, valuation, risk and analyst recommendations.

Profitability

This table compares Holmen AB (publ) and Louisiana-Pacific’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Holmen AB (publ)	N/A	N/A	N/A
Louisiana-Pacific	2.19%	4.67%	3.10%

Valuation and Earnings

This table compares Holmen AB (publ) and Louisiana-Pacific”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Holmen AB (publ)	N/A	N/A	N/A	$6.85	2.46
Louisiana-Pacific	$2.71 billion	1.90	$146.00 million	$0.79	93.19

Louisiana-Pacific has higher revenue and earnings than Holmen AB (publ). Holmen AB (publ) is trading at a lower price-to-earnings ratio than Louisiana-Pacific, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of recent ratings and price targets for Holmen AB (publ) and Louisiana-Pacific, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Holmen AB (publ)	0	0	0	0	0.00
Louisiana-Pacific	2	1	11	0	2.64

Louisiana-Pacific has a consensus target price of $94.00, indicating a potential upside of 27.68%. Given Louisiana-Pacific’s stronger consensus rating and higher probable upside, analysts clearly believe Louisiana-Pacific is more favorable than Holmen AB (publ).

Institutional and Insider Ownership

94.7% of Louisiana-Pacific shares are held by institutional investors. 0.7% of Louisiana-Pacific shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Louisiana-Pacific beats Holmen AB (publ) on 10 of the 11 factors compared between the two stocks.

About Holmen AB (publ)

Holmen AB (publ) engages in forest, paperboard, paper, wood products, and renewable energy businesses in Sweden and internationally. The Forest segment offers logs and pulpwood; and manages forests. The Paperboard segment provides paperboards for consumer packaging for brand owners, converters, and wholesalers. The Paper segment offers papers for books, and packaging and graphical publications for publishers, printers, retailers, and converters. The Wood Products segment provides construction and joinery timber, CLT and glulam products, and wood for pallets and packaging for construction, joinery, and packaging industries, as well as builders' merchants. The Renewable Energy segment generates electricity from wind, water, and bioenergy. Holmen AB (publ) was founded in 1609 and is headquartered in Stockholm, Sweden.

About Louisiana-Pacific

Louisiana-Pacific Corporation, together with its subsidiaries, provides building solutions primarily for use in new home construction, repair and remodeling, and outdoor structure markets. It operates through Siding, Oriented Strand Board, LP South America, and Other segments. The Siding segment offers LP SmartSide trim and siding products, LP SmartSide ExpertFinish trim and siding products, LP BuilderSeries lap siding products, and LP Outdoor Building Solutions; and engineered wood siding, trim, soffit, and fascia products. Its Oriented Strand Board segment manufactures and distributes oriented strand board structural panel products comprising LP TechShield radiant barriers, LP WeatherLogic air and water barriers, LP Legacy premium sub-flooring products, LP NovaCore, LP FlameBlock fire-rated sheathing products, and LP TopNotch sub-flooring products. The LP South America segment manufactures and distributes oriented strand board structural panel and siding products. This segment distributes and sells related products for the region's transition to wood frame construction. It offers timber and timberlands and other products and services. sells its products primarily to retailers, wholesalers, and homebuilding and industrial businesses in North America and South America, Asia, Australia, and Europe. The company was incorporated in 1972 and is headquartered in Nashville, Tennessee.