Analyzing Kimberly-Clark de Mexico SAB de CV (OTCMKTS:KCDMY) and Louisiana-Pacific (NYSE:LPX)

Louisiana-Pacific (NYSE:LPX) and Kimberly-Clark de Mexico SAB de CV (OTCMKTS:KCDMY) are both mid-cap materials companies, but which is the better business? We will compare the two companies based on the strength of their profitability, institutional ownership, valuation, risk, analyst recommendations, earnings and dividends.

Dividends

Louisiana-Pacific pays an annual dividend of $1.20 per share and has a dividend yield of 1.7%. Kimberly-Clark de Mexico SAB de CV pays an annual dividend of $0.57 per share and has a dividend yield of 4.9%. Louisiana-Pacific pays out 151.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Kimberly-Clark de Mexico SAB de CV pays out 77.0% 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. Kimberly-Clark de Mexico SAB de CV is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a breakdown of recent recommendations for Louisiana-Pacific and Kimberly-Clark de Mexico SAB de CV, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Louisiana-Pacific	3	0	11	0	2.57
Kimberly-Clark de Mexico SAB de CV	0	2	0	0	2.00

Louisiana-Pacific presently has a consensus target price of $94.00, suggesting a potential upside of 29.35%. Given Louisiana-Pacific’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Louisiana-Pacific is more favorable than Kimberly-Clark de Mexico SAB de CV.

Volatility & Risk

Louisiana-Pacific has a beta of 1.62, meaning that its share price is 62% more volatile than the S&P 500. Comparatively, Kimberly-Clark de Mexico SAB de CV has a beta of 0.67, meaning that its share price is 33% less volatile than the S&P 500.

Insider & Institutional Ownership

94.7% of Louisiana-Pacific shares are owned by institutional investors. 0.7% of Louisiana-Pacific shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Louisiana-Pacific and Kimberly-Clark de Mexico SAB de CV’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Louisiana-Pacific	2.19%	4.67%	3.10%
Kimberly-Clark de Mexico SAB de CV	14.11%	170.79%	15.49%

Earnings and Valuation

This table compares Louisiana-Pacific and Kimberly-Clark de Mexico SAB de CV”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Louisiana-Pacific	$2.71 billion	1.88	$146.00 million	$0.79	91.99
Kimberly-Clark de Mexico SAB de CV	$2.89 billion	2.49	$395.75 million	$0.74	15.81

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

Summary

Louisiana-Pacific beats Kimberly-Clark de Mexico SAB de CV on 9 of the 17 factors compared between the two stocks.

About Louisiana-Pacific

Louisiana-Pacific Corporation, together with its subsidiaries, provides building solutions primarily for use in new home construction, repair and remodeling, and outdoor structure markets. It operates through Siding, Oriented Strand Board, LP South America, and Other segments. The Siding segment offers LP SmartSide trim and siding products, LP SmartSide ExpertFinish trim and siding products, LP BuilderSeries lap siding products, and LP Outdoor Building Solutions; and engineered wood siding, trim, soffit, and fascia products. Its Oriented Strand Board segment manufactures and distributes oriented strand board structural panel products comprising LP TechShield radiant barriers, LP WeatherLogic air and water barriers, LP Legacy premium sub-flooring products, LP NovaCore, LP FlameBlock fire-rated sheathing products, and LP TopNotch sub-flooring products. The LP South America segment manufactures and distributes oriented strand board structural panel and siding products. This segment distributes and sells related products for the region's transition to wood frame construction. It offers timber and timberlands and other products and services. sells its products primarily to retailers, wholesalers, and homebuilding and industrial businesses in North America and South America, Asia, Australia, and Europe. The company was incorporated in 1972 and is headquartered in Nashville, Tennessee.

About Kimberly-Clark de Mexico SAB de CV

Kimberly-Clark de México, S. A. B. de C. V., together with its subsidiaries, manufactures, distributes, and markets disposable products in Mexico. The company offers baby diapers, training pants, swim pants, wet wipes, shampoos, creams, bar soaps, and feeding products. It also provides toilet papers, napkins, facial tissues, paper towels, feminine pads, panty liners, tampons, intimate wipes, and menstrual cups. In addition, the company offers pets shampoos, sprays, repellents, and cleaners. Further, it provides liquid hand soap, foaming liquid soap, and liquid body wash; and underwear, protectors, feminine pads, pre-folded products for adults. Additionally, the company offers anti-bacterial gels; disinfectant sprays; face masks; dispensers; hand towels; and industrial cleaning cloths. The company offers its products primarily under the Huggies, KleenBebe, Kleenex, Evenflo, Pétalo, Suavel, Cottonelle, Depend, Kotex, Pull-Ups, GoodNites, Vogue, Delsey, Diapro, LYS, Fancy, Kimberly-Clark, and Escudo brands. The company exports its products. Kimberly-Clark de México, S. A. B. de C. V. was founded in 1925 and is based in Mexico City, Mexico.