Reviewing Loop Industries (NASDAQ:LOOP) and Axalta Coating Systems (NYSE:AXTA)

Loop Industries (NASDAQ:LOOP) and Axalta Coating Systems (NYSE:AXTA) are both materials companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, valuation, earnings, profitability, analyst recommendations, dividends and risk.

Insider & Institutional Ownership

4.9% of Loop Industries shares are held by institutional investors. Comparatively, 98.3% of Axalta Coating Systems shares are held by institutional investors. 49.7% of Loop Industries shares are held by company insiders. Comparatively, 0.5% of Axalta Coating Systems shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Loop Industries and Axalta Coating Systems, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Loop Industries	0	1	0	0	2.00
Axalta Coating Systems	1	8	5	0	2.29

Axalta Coating Systems has a consensus target price of $38.45, suggesting a potential upside of 5.49%. Given Axalta Coating Systems’ stronger consensus rating and higher probable upside, analysts clearly believe Axalta Coating Systems is more favorable than Loop Industries.

Profitability

This table compares Loop Industries and Axalta Coating Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Loop Industries	-2,154.12%	N/A	-146.03%
Axalta Coating Systems	6.46%	21.28%	7.02%

Earnings & Valuation

This table compares Loop Industries and Axalta Coating Systems”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Loop Industries	$558,000.00	18.41	-$12.30 million	($0.25)	-0.84
Axalta Coating Systems	$5.12 billion	1.52	$378.00 million	$1.55	23.52

Axalta Coating Systems has higher revenue and earnings than Loop Industries. Loop Industries is trading at a lower price-to-earnings ratio than Axalta Coating Systems, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Loop Industries has a beta of 1.54, suggesting that its stock price is 54% more volatile than the S&P 500. Comparatively, Axalta Coating Systems has a beta of 1.25, suggesting that its stock price is 25% more volatile than the S&P 500.

Summary

Axalta Coating Systems beats Loop Industries on 11 of the 14 factors compared between the two stocks.

About Loop Industries

Loop Industries, Inc. is a Montreal, Quebec-based technology company focused on advancing the circular economy for plastics. The company has developed a patented technology designed to break down waste polyethylene terephthalate (PET) and polyester fiber into their basic building-block chemicals, which can then be used to manufacture new PET plastic and polyester products. Loop’s process is intended to handle PET waste that may be difficult to recycle through conventional mechanical methods, including materials that are colored, contaminated, or otherwise unsuitable for traditional recycling.

About Axalta Coating Systems

Axalta Coating Systems (NYSE: AXTA) develops, manufactures and sells coatings for transportation and industrial applications. Its products include paints and coatings used by vehicle manufacturers, automotive repair shops and businesses that make industrial equipment and consumer goods. The company serves the automotive original-equipment and refinish markets, as well as industrial and mobility customers. Its offerings include liquid and powder coatings, along with color-matching tools and technical support for customers applying and maintaining coated surfaces.