Koppers (NYSE:KOP – Get Free Report) and Northern Technologies International (NASDAQ:NTIC – Get Free Report) are both small-cap basic materials companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, analyst recommendations, risk, valuation, institutional ownership and earnings.
Institutional & Insider Ownership
92.8% of Koppers shares are held by institutional investors. Comparatively, 32.9% of Northern Technologies International shares are held by institutional investors. 7.3% of Koppers shares are held by company insiders. Comparatively, 24.9% of Northern Technologies International shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Volatility & Risk
Koppers has a beta of 1.28, meaning that its stock price is 28% more volatile than the S&P 500. Comparatively, Northern Technologies International has a beta of 0.19, meaning that its stock price is 81% less volatile than the S&P 500.
Dividends
Analyst Recommendations
This is a breakdown of recent recommendations for Koppers and Northern Technologies International, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Koppers | 0 | 2 | 2 | 1 | 2.80 |
| Northern Technologies International | 2 | 0 | 0 | 0 | 1.00 |
Koppers currently has a consensus price target of $52.50, suggesting a potential upside of 30.28%. Given Koppers’ stronger consensus rating and higher possible upside, equities research analysts clearly believe Koppers is more favorable than Northern Technologies International.
Valuation & Earnings
This table compares Koppers and Northern Technologies International”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Koppers | $1.88 billion | 0.41 | $56.00 million | $3.80 | 10.61 |
| Northern Technologies International | $84.24 million | 0.90 | $20,000.00 | ($0.08) | -100.00 |
Koppers has higher revenue and earnings than Northern Technologies International. Northern Technologies International is trading at a lower price-to-earnings ratio than Koppers, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Koppers and Northern Technologies International’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Koppers | 4.10% | 14.53% | 4.20% |
| Northern Technologies International | -0.87% | 0.05% | 0.04% |
Summary
Koppers beats Northern Technologies International on 15 of the 18 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 Northern Technologies International
Northern Technologies International Corporation develops and markets rust and corrosion inhibiting solutions in North America, South America, Europe, Asia, the Middle East and internationally. It offers rust and corrosion inhibiting products, such as plastic and paper packaging, liquids, coatings, rust removers, cleaners, diffusers, and engineered solutions designed for the oil and gas industry under the ZERUST brand. The company provides a portfolio of bio-based and certified compostable polymer resin compounds and finished products under the Natur-Tec brand. In addition, it offers on-site and technical consulting for rust and corrosion prevention issues. It sells its products and services to automotive, electronics, electrical, mechanical, military, retail consumer, and oil and gas markets through direct sales force, network of independent distributors, agents, manufacturer's sales representatives, and strategic partners. The company was founded in 1970 and is headquartered in Circle Pines, Minnesota.
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