TREX vs. LPX, KBR, MTZ, EXP, AYI, CX, ALTR, UFPI, FIX, and SSD
Should you be buying Trex stock or one of its competitors? The main competitors of Trex include Louisiana-Pacific (LPX), KBR (KBR), MasTec (MTZ), Eagle Materials (EXP), Acuity Brands (AYI), CEMEX (CX), Altair Engineering (ALTR), UFP Industries (UFPI), Comfort Systems USA (FIX), and Simpson Manufacturing (SSD). These companies are all part of the "construction" sector.
Louisiana-Pacific (NYSE:LPX) and Trex (NYSE:TREX) are both mid-cap construction companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, profitability, valuation, analyst recommendations, dividends, media sentiment, community ranking, earnings and institutional ownership.
Louisiana-Pacific presently has a consensus price target of $83.89, suggesting a potential downside of 6.41%. Trex has a consensus price target of $89.47, suggesting a potential upside of 3.18%. Given Louisiana-Pacific's higher probable upside, analysts clearly believe Trex is more favorable than Louisiana-Pacific.
Louisiana-Pacific has a beta of 1.87, suggesting that its share price is 87% more volatile than the S&P 500. Comparatively, Trex has a beta of 1.6, suggesting that its share price is 60% more volatile than the S&P 500.
Trex has a net margin of 20.60% compared to Trex's net margin of 9.74%. Louisiana-Pacific's return on equity of 35.33% beat Trex's return on equity.
In the previous week, Trex had 3 more articles in the media than Louisiana-Pacific. MarketBeat recorded 9 mentions for Trex and 6 mentions for Louisiana-Pacific. Trex's average media sentiment score of 0.96 beat Louisiana-Pacific's score of 0.64 indicating that Louisiana-Pacific is being referred to more favorably in the media.
Trex has lower revenue, but higher earnings than Louisiana-Pacific. Louisiana-Pacific is trading at a lower price-to-earnings ratio than Trex, indicating that it is currently the more affordable of the two stocks.
94.7% of Louisiana-Pacific shares are held by institutional investors. Comparatively, 96.0% of Trex shares are held by institutional investors. 1.5% of Louisiana-Pacific shares are held by insiders. Comparatively, 0.7% of Trex shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Trex received 92 more outperform votes than Louisiana-Pacific when rated by MarketBeat users. However, 55.93% of users gave Louisiana-Pacific an outperform vote while only 55.40% of users gave Trex an outperform vote.
Summary
Trex beats Louisiana-Pacific on 11 of the 18 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding TREX and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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