Reviewing Tosoh (OTCMKTS:TOSCF) and Koppers (NYSE:KOP)

Tosoh (OTCMKTS:TOSCF) and Koppers (NYSE:KOP) are both basic materials companies, but which is the better stock? We will contrast the two companies based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Institutional & Insider Ownership

92.8% of Koppers shares are owned by institutional investors. 7.3% of Koppers shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Tosoh	$6.78 billion	0.75	$274.66 million	$0.87	18.39
Koppers	$1.88 billion	0.46	$56.00 million	$3.80	11.72

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

Analyst Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Tosoh	0	0	0	0	0.00
Koppers	0	2	2	1	2.80

Koppers has a consensus price target of $52.50, suggesting a potential upside of 17.87%. Given Koppers’ stronger consensus rating and higher probable upside, analysts plainly believe Koppers is more favorable than Tosoh.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Tosoh	4.01%	6.64%	4.43%
Koppers	4.10%	14.53%	4.20%

Volatility & Risk

Tosoh has a beta of 0.21, suggesting that its share price is 79% less volatile than the S&P 500. Comparatively, Koppers has a beta of 1.26, suggesting that its share price is 26% more volatile than the S&P 500.

Summary

Koppers beats Tosoh on 10 of the 15 factors compared between the two stocks.

About Tosoh

Tosoh Corporation manufactures and sells basic chemicals, petrochemicals, specialty products, and fine chemicals worldwide. It operates through four segments: Petrochemical, Chlor-Alkali, Specialty, and Engineering. The company provides advance materials, including battery, fabricated quartzware, silica glass, thin film depositions, zeolites for catalysts and molecular sieves, zirconia injection mold components and compounds, zirconia grinding and dispersion media, and zirconia fine beads and powders. It also offers chromatographic columns, and media and diagnostic systems; clinical diagnostic systems; Portland cement and blast-furnace slag cement; and caustic soda, vinyl chloride monomer, calcium hypochlorite, and sodium bicarbonate. In addition, the company provides ethylene, propylene, C4 fraction, tertiary butyl alcohol, cumene, and aromatic compounds; and ethyleneamines, bromine, hydrobromic acids, flame retardants, non-aqueous solvents, chelating agents, ethylene dichloride, and sodium styrenesulfonate. Further, it offers polymers, such as ethylene vinyl-acetate copolymers, adhesive polymers, low and high-density polyethylene products, synthetic rubbers, functional polymers, and polyvinyl chloride pastes; and polyurethanes (PU), including methylene diphenyl diisocyanate, toluene diisocyanate, hexamethylene diisocyanate, adhesives, coating resins, elastomers, polyisocyanates for PU paints, and polyols. The company manufactures and sells water treatment systems; and engages in the construction and repair businesses. It serves chemical and petrochemical, construction, automotive, consumer electronics, information technology, bioscience, and environmental markets. The company was incorporated in 1935 and is headquartered in Tokyo, Japan.

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.