Louisiana-Pacific Corporation (LPX) vs Trex Company, Inc. (TREX)

Louisiana-Pacific Corporation and Trex Company, Inc. are both Building Products & Equipment companies. Louisiana-Pacific Corporation and Trex Company, Inc. are of similar size ($5.7B and $5.4B). Trex Company, Inc. trades at the lower P/E: 32.8× against 77.9×. Trex Company, Inc. grew revenue faster over the last twelve months: 8.58% against −11.6%. Trex Company, Inc. has the higher net margin (13.9% vs 2.73%) and the higher return on invested capital (13.1% vs 2.88%). Across the 22 metrics below, Trex Company, Inc. leads on 17 and Louisiana-Pacific Corporation on 5.

Valuation

Metric LPX TREX Building Products & Equipment median
P/E 77.89 32.85 23.33
P/S 2.16 4.47 2.09
P/B 3.10 5.67 2.85
Price to free cash flow 173.87 29.63 18.42
EV/EBITDA 26.46 18.31 13.29
EV/Sales 2.20 4.61 2.28
Earnings yield 1.28% 3.04% 3.04%
Free cash flow yield 0.58% 3.38% 4.26%

Profitability

Metric LPX TREX Building Products & Equipment median
Gross margin 17.19% 37.09% 31.88%
Operating margin 3.37% 19.17% 7.18%
Net margin 2.73% 13.89% 4.11%
Free cash flow margin 1.24% 15.10% 6.41%
Return on equity 3.91% 17.35% 5.95%
Return on assets 2.57% 11.79% 3.90%
Return on invested capital 2.88% 13.05% 5.54%

Growth

Metric LPX TREX Building Products & Equipment median
Revenue growth (TTM) (11.62%) 8.58% 6.27%
EPS growth (last fiscal year) (64.69%) (19.55%) (28.29%)
Revenue growth, 5-year CAGR 2.45% 5.92% 4.81%
Net income growth, 5-year CAGR (21.79%) 1.63% 0.00%

Health

Metric LPX TREX Building Products & Equipment median
Debt to equity 0.20 0.17 0.55
Current ratio 2.75 1.23 1.83
Net debt to EBITDA 0.16 0.40 1.45

Dividend

Metric LPX TREX Building Products & Equipment median
Dividend yield 1.53% — 1.37%
Payout ratio 1.19 — 0.28

Size

Metric LPX TREX Building Products & Equipment median
Market cap 5.38b 5.71b 3.22b

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