Contrasting Louisiana-Pacific (NYSE:LPX) & Nature Wood Group (NASDAQ:NWGL)

Nature Wood Group (NASDAQ:NWGL) and Louisiana-Pacific (NYSE:LPX) are both construction companies, but which is the better stock? We will contrast the two businesses based on the strength of their profitability, valuation, risk, dividends, analyst recommendations, institutional ownership and earnings.

Volatility and Risk

Nature Wood Group has a beta of 1.88, suggesting that its stock price is 88% more volatile than the S&P 500. Comparatively, Louisiana-Pacific has a beta of 1.8, suggesting that its stock price is 80% more volatile than the S&P 500.

Insider & Institutional Ownership

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

Earnings and Valuation

This table compares Nature Wood Group and Louisiana-Pacific”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nature Wood Group	$21.54 million	0.87	-$8.73 million	N/A	N/A
Louisiana-Pacific	$2.82 billion	1.86	$420.00 million	$3.09	24.40

Louisiana-Pacific has higher revenue and earnings than Nature Wood Group.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Nature Wood Group and Louisiana-Pacific, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nature Wood Group	1	0	0	0	1.00
Louisiana-Pacific	1	3	5	0	2.44

Louisiana-Pacific has a consensus target price of $106.33, suggesting a potential upside of 41.04%. Given Louisiana-Pacific’s stronger consensus rating and higher probable upside, analysts plainly believe Louisiana-Pacific is more favorable than Nature Wood Group.

Profitability

This table compares Nature Wood Group and Louisiana-Pacific’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nature Wood Group	N/A	N/A	N/A
Louisiana-Pacific	10.34%	18.67%	12.19%

Summary

Louisiana-Pacific beats Nature Wood Group on 11 of the 12 factors compared between the two stocks.

About Nature Wood Group

Nature Wood Group Limited, an integrated forestry company, engages in management and harvesting, and down-stream wood-processing and distribution activities. It operates in two divisions, Direct Purchase and Original Design Manufacturer Services; and Manufacturing segments. The company offers a range of products, including logs, decking and flooring products, sawn timber, recycled and synthesized charcoal, machine-made charcoal, and essential oils. It provides IT and business consultancy services. The company serves importers, retailers, and processors through its sales network in Europe, South Asia, South America, North America, and China. The company was formerly known as China Nature Wood Industry Group Limited and changed its name to Nature Wood Group Limited in September 2022. The company was incorporated in 2011 and is headquartered in Macau. Nature Wood Group Limited operates as a subsidiary of Easy Bliss Limited.

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.