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 ($4.6B and $4.4B). Trex Company, Inc. trades at the lower P/E: 26.7× against 84.4×. Trex Company, Inc. grew revenue faster over the last twelve months: 6.97% against −14.4%. Trex Company, Inc. has the higher net margin (14.7% vs 2.19%) and the higher return on invested capital (12.1% vs 2.45%). Across the 21 metrics below, Trex Company, Inc. leads on 15 and Louisiana-Pacific Corporation on 6.

Valuation

Metric LPX TREX Building Products & Equipment median
P/E 84.43 26.66 24.54
P/S 1.89 3.79 2.00
P/B 2.68 4.54 3.02
Price to free cash flow n/m 23.06 18.49
EV/EBITDA 23.06 15.38 12.63
EV/Sales 1.94 4.00 2.14
Earnings yield 1.18% 3.75% 2.74%
Free cash flow yield (0.45%) 4.34% 3.58%

Profitability

Metric LPX TREX Building Products & Equipment median
Gross margin 17.96% 38.20% 29.19%
Operating margin 2.96% 20.17% 6.84%
Net margin 2.19% 14.68% 4.05%
Free cash flow margin (0.85%) 16.45% 8.72%
Return on equity 3.10% 17.74% 9.28%
Return on assets 2.05% 11.21% 2.88%
Return on invested capital 2.45% 12.12% 5.16%

Growth

Metric LPX TREX Building Products & Equipment median
Revenue growth (TTM) (14.40%) 6.97% 3.11%
EPS growth (last fiscal year) (64.69%) (15.31%) —
Revenue growth, 5-year CAGR 2.45% 5.92% 5.37%
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 0.25 0.43
Current ratio 3.22 1.06 1.82
Net debt to EBITDA 0.16 0.40 0.98

Dividend

Metric LPX TREX Building Products & Equipment median
Dividend yield 1.39% — 1.20%
Payout ratio 0.42 0.00 0.04

Size

Metric LPX TREX Building Products & Equipment median
Market cap 4.63b 4.40b 1.18b

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