Louisiana-Pacific (LPX) Competitors

Louisiana-Pacific (NYSE:LPX) and Potlatch (NASDAQ:PCH) are both mid-cap construction companies, but which is the better business? We will contrast the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, risk, media sentiment, dividends, earnings and valuation.

Does the media favor LPX or PCH?

In the previous week, Louisiana-Pacific had 2 more articles in the media than Potlatch. MarketBeat recorded 6 mentions for Louisiana-Pacific and 4 mentions for Potlatch. Potlatch's average media sentiment score of 1.75 beat Louisiana-Pacific's score of 1.57 indicating that Potlatch is being referred to more favorably in the news media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Louisiana-Pacific	6 Very Positive mention(s)	0 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Very Positive
Potlatch	3 Very Positive mention(s)	0 Positive mention(s)	0 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Very Positive

Is LPX or PCH more profitable?

Louisiana-Pacific has a net margin of 10.34% compared to Potlatch's net margin of 3.94%. Louisiana-Pacific's return on equity of 18.67% beat Potlatch's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Louisiana-Pacific	10.34%	18.67%	12.19%
Potlatch	3.94%	2.10%	1.29%

Which has higher valuation and earnings, LPX or PCH?

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

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Louisiana-Pacific	$2.94B	2.23	$420M	$4.24	22.17
Potlatch	$1.06B	2.95	$21.88M	$0.53	76.51

Is LPX or PCH a better dividend stock?

Louisiana-Pacific pays an annual dividend of $1.12 per share and has a dividend yield of 1.2%. Potlatch pays an annual dividend of $1.80 per share and has a dividend yield of 4.4%. Louisiana-Pacific pays out 26.4% of its earnings in the form of a dividend. Potlatch pays out 339.6% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Louisiana-Pacific has raised its dividend for 7 consecutive years.

Do insiders and institutionals hold more shares of LPX or PCH?

94.7% of Louisiana-Pacific shares are owned by institutional investors. Comparatively, 86.1% of Potlatch shares are owned by institutional investors. 1.4% of Louisiana-Pacific shares are owned by company insiders. Comparatively, 1.0% of Potlatch shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Do analysts recommend LPX or PCH?

Louisiana-Pacific currently has a consensus target price of $110.57, suggesting a potential upside of 17.63%. Potlatch has a consensus target price of $49.83, suggesting a potential upside of 22.89%. Given Potlatch's stronger consensus rating and higher probable upside, analysts plainly believe Potlatch is more favorable than Louisiana-Pacific.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Louisiana-Pacific	1 Sell rating(s)	2 Hold rating(s)	4 Buy rating(s)	0 Strong Buy rating(s)	2.43
Potlatch	0 Sell rating(s)	0 Hold rating(s)	6 Buy rating(s)	0 Strong Buy rating(s)	3.00

Which has more volatility and risk, LPX or PCH?

Louisiana-Pacific has a beta of 1.84, suggesting that its share price is 84% more volatile than the S&P 500. Comparatively, Potlatch has a beta of 1.12, suggesting that its share price is 12% more volatile than the S&P 500.

Summary

Louisiana-Pacific beats Potlatch on 12 of the 19 factors compared between the two stocks.