Universal Forest Products (UFPI) versus Louisiana-Pacific (LPX) Head to Head Analysis

Universal Forest Products (NASDAQ: UFPI) and Louisiana-Pacific (NYSE:LPX) are both mid-cap construction companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, dividends, risk, institutional ownership, profitability, analyst recommendations and valuation.

Valuation & Earnings

This table compares Universal Forest Products and Louisiana-Pacific’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Universal Forest Products $3.24 billion 0.71 $101.17 million $1.78 21.26
Louisiana-Pacific $2.23 billion 1.71 $149.80 million $2.07 12.74

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

Analyst Ratings

This is a summary of recent recommendations and price targets for Universal Forest Products and Louisiana-Pacific, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Universal Forest Products 0 1 1 0 2.50
Louisiana-Pacific 2 5 2 0 2.00

Universal Forest Products presently has a consensus target price of $36.67, suggesting a potential downside of 2.95%. Louisiana-Pacific has a consensus target price of $29.00, suggesting a potential upside of 9.93%. Given Louisiana-Pacific’s higher possible upside, analysts plainly believe Louisiana-Pacific is more favorable than Universal Forest Products.

Insider and Institutional Ownership

26.7% of Universal Forest Products shares are held by institutional investors. Comparatively, 93.1% of Louisiana-Pacific shares are held by institutional investors. 3.4% of Universal Forest Products shares are held by insiders. Comparatively, 1.5% of Louisiana-Pacific shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Universal Forest Products and Louisiana-Pacific’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Universal Forest Products 2.85% 12.05% 7.61%
Louisiana-Pacific 11.72% 20.27% 12.44%

Dividends

Universal Forest Products pays an annual dividend of $0.34 per share and has a dividend yield of 0.9%. Louisiana-Pacific does not pay a dividend. Universal Forest Products pays out 19.1% of its earnings in the form of a dividend.

Volatility and Risk

Universal Forest Products has a beta of 1.83, suggesting that its share price is 83% more volatile than the S&P 500. Comparatively, Louisiana-Pacific has a beta of 1.51, suggesting that its share price is 51% more volatile than the S&P 500.

Summary

Louisiana-Pacific beats Universal Forest Products on 10 of the 16 factors compared between the two stocks.

Universal Forest Products Company Profile

Universal Forest Products, Inc. is a holding company. The Company, through its subsidiaries, supplies wood, wood composite and other products to three primary markets, such as retail, construction and industrial. Its segments include North, South, West, Alternative Materials, International, idX Holdings, Inc. (idX) and Corporate divisions. idX is a designer, manufacturer and installer of in-store environments. It designs, manufactures and markets wood and wood-alternative products for national home centers and other retailers; structural lumber and other products for the manufactured housing industry; engineered wood components for residential and commercial construction; specialty wood packaging, components and packing materials for various industries, and customized interior fixtures used in a range of retail stores, commercial and other structures. Its customers comprising retail market are national home center retailers and retail-oriented regional lumberyards, among others.

Louisiana-Pacific Company Profile

Louisiana-Pacific Corporation is a manufacturer of building products. The Company’s products are used in home construction, repair and remodeling, and outdoor structures. The Company operates in four segments, which include North America Oriented Strand Board (OSB), Siding, Engineered Wood Products (EWP) and South America. The OSB segment manufactures and distributes OSB structural panel products. The Siding segment offers two categories of products, which include SmartSide siding products and related accessories, and CanExel siding and accessories and other related products. The Engineered Wood Products (EWP) segment manufactures and distributes laminated veneer lumber, I-Joists, laminated strand lumber and other related products. The South American segment manufactures and distributes OSB and siding products in South America and certain export markets. Its engineered I-joists are used in residential and commercial flooring, and roofing systems and other structural applications.

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