RPM International (NYSE:RPM) and Koppers (NYSE:KOP) Head to Head Contrast

RPM International (NYSE:RPM) and Koppers (NYSE:KOP) are both materials companies, but which is the better business? We will compare the two companies based on the strength of their risk, valuation, analyst recommendations, institutional ownership, profitability, dividends and earnings.

Earnings and Valuation

This table compares RPM International and Koppers”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
RPM International	$7.86 billion	1.60	$661.39 million	$5.16	19.07
Koppers	$1.88 billion	0.46	$56.00 million	($4.72)	-9.65

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for RPM International and Koppers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
RPM International	0	3	11	0	2.79
Koppers	1	1	1	1	2.50

RPM International presently has a consensus price target of $125.75, suggesting a potential upside of 27.77%. Koppers has a consensus price target of $55.00, suggesting a potential upside of 20.79%. Given RPM International’s stronger consensus rating and higher possible upside, research analysts plainly believe RPM International is more favorable than Koppers.

Insider & Institutional Ownership

80.9% of RPM International shares are held by institutional investors. Comparatively, 92.7% of Koppers shares are held by institutional investors. 1.5% of RPM International shares are held by insiders. Comparatively, 7.3% of Koppers shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Risk & Volatility

RPM International has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500. Comparatively, Koppers has a beta of 1.23, indicating that its stock price is 23% more volatile than the S&P 500.

Profitability

This table compares RPM International and Koppers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
RPM International	8.41%	22.45%	8.86%
Koppers	-4.59%	14.98%	4.17%

Dividends

RPM International pays an annual dividend of $2.16 per share and has a dividend yield of 2.2%. Koppers pays an annual dividend of $0.36 per share and has a dividend yield of 0.8%. RPM International pays out 41.9% of its earnings in the form of a dividend. Koppers pays out -7.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. RPM International has increased its dividend for 51 consecutive years and Koppers has increased its dividend for 2 consecutive years. RPM International is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

RPM International beats Koppers on 13 of the 18 factors compared between the two stocks.

About RPM International

RPM International Inc. manufactures and sells specialty chemicals for the industrial, specialty, and consumer markets worldwide. It offers waterproofing, coating, and traditional roofing systems; sealants, air barriers, tapes, and foams; residential home weatherization systems; roofing and building maintenance services; sealing and bonding, subfloor preparation, flooring, and glazing solutions; resin flooring systems, polyurethane, MMA waterproof, epoxy floor paint and coatings, concrete repair, and protection products; fire stopping and intumescent steel coating, and manufacturing industry solutions; rolled asphalt roofing materials and chemical admixtures; concrete and masonry admixtures, concrete fibers, curing and sealing compounds, structural grouts and mortars, epoxy adhesives, injection resins, polyurethane foams, floor hardeners and toppings, joint fillers, industrial and architectural coatings, decorative color/stains/stamps, and restoration materials; insulated building cladding materials; and concrete form wall systems. It also provides polymer flooring systems; fiberglass reinforced plastic gratings and shapes; corrosion-control coating, containment and railcar lining, fire and sound proofing, and heat and cryogenic insulation products; specialty construction products; amine curing agents, reactive diluents, and epoxy resins; fluorescent colorants and pigments; shellac-based-specialty and marine coatings; fire and water damage restoration, carpet cleaning, and disinfecting products; fuel additives; wood treatments, coatings, and touch-up products; and nail enamels, polishes, and coating components. In addition, it offers solutions for the paint contractors and DIYers, concrete restoration and flooring, metallic and faux finish coatings, cleaners, and hobby paints and cements; and caulks, adhesives, insulating foams, and patches, as well as spackling, glazing, and repair products. The company was incorporated in 1947 and is headquartered in Medina, Ohio.

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.