Comparing JELD-WEN (NYSE:JELD) & Louisiana-Pacific (NYSE:LPX)

JELD-WEN (NYSE:JELD) and Louisiana-Pacific (NYSE:LPX) are both construction companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, valuation, dividends, profitability, earnings, analyst recommendations and risk.

Insider & Institutional Ownership

95.0% of JELD-WEN shares are owned by institutional investors. Comparatively, 94.7% of Louisiana-Pacific shares are owned by institutional investors. 1.2% of JELD-WEN shares are owned by insiders. Comparatively, 1.4% of Louisiana-Pacific shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares JELD-WEN and Louisiana-Pacific”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
JELD-WEN	$3.78 billion	0.11	-$189.02 million	($4.06)	-1.15
Louisiana-Pacific	$2.94 billion	2.14	$420.00 million	$4.24	21.29

Louisiana-Pacific has lower revenue, but higher earnings than JELD-WEN. JELD-WEN is trading at a lower price-to-earnings ratio than Louisiana-Pacific, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

JELD-WEN has a beta of 1.7, indicating that its stock price is 70% more volatile than the S&P 500. Comparatively, Louisiana-Pacific has a beta of 1.8, indicating that its stock price is 80% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for JELD-WEN and Louisiana-Pacific, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JELD-WEN	2	7	0	0	1.78
Louisiana-Pacific	1	3	4	0	2.38

JELD-WEN presently has a consensus target price of $6.03, indicating a potential upside of 28.87%. Louisiana-Pacific has a consensus target price of $110.57, indicating a potential upside of 22.46%. Given JELD-WEN’s higher probable upside, analysts plainly believe JELD-WEN is more favorable than Louisiana-Pacific.

Profitability

This table compares JELD-WEN and Louisiana-Pacific’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
JELD-WEN	-10.03%	-1.60%	-0.35%
Louisiana-Pacific	10.34%	18.67%	12.19%

Summary

Louisiana-Pacific beats JELD-WEN on 11 of the 14 factors compared between the two stocks.

About JELD-WEN

JELD-WEN Holding, Inc. designs, manufactures, and sells wood, metal, and composite materials doors, windows, and related building products in North America and Europe. The company offers a line of residential interior and exterior door products, including patio doors, and folding or sliding wall systems; non-residential doors; stile and rail doors; and wood, vinyl, and wood composite windows. It also provides other ancillary products and services, such as trim boards, glasses, hardware and locks, window screens, and molded door skins, as well as miscellaneous installation and other services. The company sells its products under the JELD-WEN, AuraLast, MiraTEC, Extira, LaCANTINA, MMI Door, Karona, ImpactGard, JW, Aurora, IWP, True BLU, ABS, Siteline, National Door, Low-Friction Glider, Hydrolock, VPI, AURALINE, FINISHIELD, MILLENNIUM, TRUFIT, EPICVUE, EVELIN, Swedoor, Dooria, DANA, Mattiovi, Zargag, Alupan, Domoferm, Kellpax, and HSE brands. It serves wholesale distributors and retailers, retail home centers, and building product dealers, as well as homebuilders, contractors, and consumers. JELD-WEN Holding, Inc. was founded in 1960 and is based in Charlotte, North Carolina.

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.