Head-To-Head Analysis: Iochpe-Maxion (OTCMKTS:IOCJY) and XPEL (NASDAQ:XPEL)

XPEL (NASDAQ:XPEL) and Iochpe-Maxion (OTCMKTS:IOCJY) are both small-cap consumer discretionary companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.

Volatility and Risk

XPEL has a beta of 1.09, meaning that its stock price is 9% more volatile than the S&P 500. Comparatively, Iochpe-Maxion has a beta of 0.67, meaning that its stock price is 33% less volatile than the S&P 500.

Profitability

This table compares XPEL and Iochpe-Maxion’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
XPEL	10.82%	19.14%	14.29%
Iochpe-Maxion	0.58%	1.88%	0.61%

Earnings & Valuation

This table compares XPEL and Iochpe-Maxion”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
XPEL	$476.20 million	2.89	$51.23 million	$1.91	26.15
Iochpe-Maxion	$2.75 billion	0.09	$17.62 million	$0.03	18.03

XPEL has higher earnings, but lower revenue than Iochpe-Maxion. Iochpe-Maxion is trading at a lower price-to-earnings ratio than XPEL, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

75.1% of XPEL shares are held by institutional investors. 9.4% of XPEL shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for XPEL and Iochpe-Maxion, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
XPEL	0	3	0	0	2.00
Iochpe-Maxion	0	1	0	0	2.00

Summary

XPEL beats Iochpe-Maxion on 10 of the 11 factors compared between the two stocks.

About XPEL

XPEL, Inc. sells, distributes, and installs protective films and coatings worldwide. The company offers automotive surface and paint protection film, headlight protection, and automotive and architectural window films, as well as proprietary DAP software. It also provides pre-cut film products, merchandise and apparel, ceramic coatings, and tools and accessories. In addition, the company offers paint protection kits, car wash products, after-care products, and installation tools through its website. The company sells and distributes its products through independent installers, new car dealerships, third-party distributors, automobile original equipment manufacturers, and company-owned installation centers, as well as through franchisees and online channels. The company serves in the United States, China, Canada, Continental Europe, the United Kingdom, Asia Pacific, Latin America, the Middle East/Africa, and internationally. XPEL, Inc. was founded in 1997 and is headquartered in San Antonio, Texas.

About Iochpe-Maxion

Iochpe-Maxion S.A. produces and sells automotive wheels and structural components for commercial and light vehicles in North America, South America, Europe, Asia, and internationally. It operates in two divisions, Maxion Wheels and Maxion Structural Components. The company offers heavy steel wheels; light steel wheels for automobiles, pick-ups, and SUVs, as well as light and medium commercial vehicles; wheels for agricultural machinery; and light aluminum wheels for automobiles. It also provides heavy structural components, including frames, side members, and cross members. In addition, the company offers light and automotive structural components, such as stampings for passenger vehicles, handbrake levers, pedal and welded assemblies, structural parts, and other automotive components. Further, it produces railway wheels, freight cars, and castings, as well as industrial castings. The company was founded in 1918 and is headquartered in Cruzeiro, Brazil.