Loop Industries (NASDAQ:LOOP – Get Free Report) and Axalta Coating Systems (NYSE:AXTA – Get Free Report) are both materials companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, earnings, valuation, risk, institutional ownership, dividends and analyst recommendations.
Earnings and Valuation
This table compares Loop Industries and Axalta Coating Systems”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Loop Industries | $558,000.00 | 18.41 | -$12.30 million | ($0.25) | -0.84 |
| Axalta Coating Systems | $5.12 billion | 1.52 | $378.00 million | $1.55 | 23.52 |
Insider and Institutional Ownership
4.9% of Loop Industries shares are held by institutional investors. Comparatively, 98.3% of Axalta Coating Systems shares are held by institutional investors. 49.7% of Loop Industries shares are held by insiders. Comparatively, 0.5% of Axalta Coating Systems shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Profitability
This table compares Loop Industries and Axalta Coating Systems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Loop Industries | -2,154.12% | N/A | -146.03% |
| Axalta Coating Systems | 6.46% | 21.28% | 7.02% |
Volatility and Risk
Loop Industries has a beta of 1.54, meaning that its stock price is 54% more volatile than the S&P 500. Comparatively, Axalta Coating Systems has a beta of 1.25, meaning that its stock price is 25% more volatile than the S&P 500.
Analyst Recommendations
This is a summary of recent ratings for Loop Industries and Axalta Coating Systems, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Loop Industries | 0 | 1 | 0 | 0 | 2.00 |
| Axalta Coating Systems | 1 | 8 | 5 | 0 | 2.29 |
Axalta Coating Systems has a consensus target price of $38.45, suggesting a potential upside of 5.49%. Given Axalta Coating Systems’ stronger consensus rating and higher probable upside, analysts clearly believe Axalta Coating Systems is more favorable than Loop Industries.
Summary
Axalta Coating Systems beats Loop Industries on 11 of the 14 factors compared between the two stocks.
About Loop Industries
Loop Industries, Inc. is a Montreal, Quebec-based technology company focused on advancing the circular economy for plastics. The company has developed a patented technology designed to break down waste polyethylene terephthalate (PET) and polyester fiber into their basic building-block chemicals, which can then be used to manufacture new PET plastic and polyester products. Loop’s process is intended to handle PET waste that may be difficult to recycle through conventional mechanical methods, including materials that are colored, contaminated, or otherwise unsuitable for traditional recycling.
About Axalta Coating Systems
Axalta Coating Systems (NYSE: AXTA) develops, manufactures and sells coatings for transportation and industrial applications. Its products include paints and coatings used by vehicle manufacturers, automotive repair shops and businesses that make industrial equipment and consumer goods. The company serves the automotive original-equipment and refinish markets, as well as industrial and mobility customers. Its offerings include liquid and powder coatings, along with color-matching tools and technical support for customers applying and maintaining coated surfaces.
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