Contrasting Koppers (NYSE:KOP) & Compass Minerals International (NYSE:CMP)

Compass Minerals International (NYSE:CMP) and Koppers (NYSE:KOP) are both small-cap basic materials companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, earnings, analyst recommendations, valuation and profitability.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Compass Minerals International	-12.15%	-24.24%	-4.36%
Koppers	1.24%	17.41%	4.60%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Compass Minerals International and Koppers, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Compass Minerals International	0	1	2	0	2.67
Koppers	0	0	1	1	3.50

Compass Minerals International currently has a consensus price target of $19.00, indicating a potential downside of 13.00%. Koppers has a consensus price target of $64.00, indicating a potential upside of 95.48%. Given Koppers’ stronger consensus rating and higher possible upside, analysts plainly believe Koppers is more favorable than Compass Minerals International.

Volatility & Risk

Compass Minerals International has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500. Comparatively, Koppers has a beta of 1.49, suggesting that its share price is 49% more volatile than the S&P 500.

Insider & Institutional Ownership

99.8% of Compass Minerals International shares are held by institutional investors. Comparatively, 92.8% of Koppers shares are held by institutional investors. 1.5% of Compass Minerals International shares are held by company insiders. Comparatively, 6.9% of Koppers shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares Compass Minerals International and Koppers”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Compass Minerals International	$1.12 billion	0.81	-$206.10 million	($3.56)	-6.13
Koppers	$2.09 billion	0.31	$52.40 million	$1.16	28.22

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

Summary

Koppers beats Compass Minerals International on 12 of the 15 factors compared between the two stocks.

About Compass Minerals International

Compass Minerals International, Inc., provides essential minerals in the United States, Canada, the United Kingdom, and internationally. It operates through two segments, Salt and Plant Nutrition. The Salt segment produces, markets, and sells sodium chloride and magnesium chloride, including rock salt, mechanically and solar evaporated salt, and brine and flake magnesium chloride products; and purchases potassium chloride and calcium chloride to sell as finished products or to blend with sodium chloride to produce specialty products. This segment provides products for use as a deicer for roadways, consumer, and professional use; as an ingredient in chemical production; for water treatment, human, and animal nutrition; and for various other consumer and industrial uses, as well as records management services. The Plant Nutrition segment produces sulfate of potash specialty fertilizers in various grades that are used in broadcast spreaders, direct application, and liquid fertilizer solutions under the Protassium+ brand name; turf products used by the turf and ornamental markets, as well as for blends used on golf course greens; organic products; and develops and produces a portfolio of magnesium chloride-based aerial and ground fire retardant products. This segment provides its products to distributors and retailers of crop inputs, as well as growers. The company was formerly known as Salt Holdings Corporation and changed its name to Compass Minerals International, Inc. in December 2003. Compass Minerals International, Inc. was founded in 1844 and is headquartered in Overland Park, Kansas.

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.