Analyzing China Carbon Graphite Group (OTCMKTS:CHGI) & Koppers (NYSE:KOP)

Koppers (NYSE:KOP) and China Carbon Graphite Group (OTCMKTS:CHGI) are both basic materials companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, risk, dividends, institutional ownership, earnings, profitability and valuation.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Koppers and China Carbon Graphite Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Koppers	0	2	2	0	2.50
China Carbon Graphite Group	0	0	0	0	0.00

Koppers presently has a consensus target price of $52.50, suggesting a potential upside of 40.92%. Given Koppers’ stronger consensus rating and higher probable upside, equities analysts clearly believe Koppers is more favorable than China Carbon Graphite Group.

Profitability

This table compares Koppers and China Carbon Graphite Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Koppers	2.98%	15.47%	4.37%
China Carbon Graphite Group	N/A	N/A	N/A

Volatility & Risk

Koppers has a beta of 1.3, suggesting that its share price is 30% more volatile than the S&P 500. Comparatively, China Carbon Graphite Group has a beta of -1.66, suggesting that its share price is 266% less volatile than the S&P 500.

Valuation & Earnings

This table compares Koppers and China Carbon Graphite Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Koppers	$1.88 billion	0.38	$56.00 million	$2.77	13.45
China Carbon Graphite Group	N/A	N/A	N/A	N/A	N/A

Koppers has higher revenue and earnings than China Carbon Graphite Group.

Institutional and Insider Ownership

92.8% of Koppers shares are held by institutional investors. 6.9% of Koppers shares are held by insiders. Comparatively, 5.5% of China Carbon Graphite Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Summary

Koppers beats China Carbon Graphite Group on 10 of the 10 factors compared between the two stocks.

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.

About China Carbon Graphite Group

China Carbon Graphite Group, Inc., together with its subsidiaries, engages in the research and development, manufacture, rework, and sale of graphene, graphene oxide, carbon graphite felt, and graphite bipolar plates in the People's Republic of China. Its graphene oxide is used as a conductive agent in lithium ion batteries, super capacitors, rubber and plastic additives, conductive inks, special coatings, transparent conductive thin films, and chips; and graphite bipolar plates are used in solar power storage. The company operates roycarbon.com, a business-to-business and business-to-consumers Internet portal for graphite related products. China Carbon Graphite Group, Inc. was founded in 1986 and is based in Diamond Bar, California.