Axalta Coating Systems (NYSE:AXTA) and 5E Advanced Materials (NASDAQ:FEAM) Financial Contrast

Axalta Coating Systems (NYSE:AXTA) and 5E Advanced Materials (NASDAQ:FEAM) are both basic materials companies, but which is the better investment? We will compare the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, dividends, risk, earnings and valuation.

Valuation and Earnings

This table compares Axalta Coating Systems and 5E Advanced Materials”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Axalta Coating Systems	$5.12 billion	1.22	$378.00 million	$1.71	17.06
5E Advanced Materials	N/A	N/A	-$31.56 million	($1.34)	-1.54

Axalta Coating Systems has higher revenue and earnings than 5E Advanced Materials. 5E Advanced Materials is trading at a lower price-to-earnings ratio than Axalta Coating Systems, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Axalta Coating Systems and 5E Advanced Materials’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Axalta Coating Systems	7.22%	22.37%	6.92%
5E Advanced Materials	N/A	-70.04%	-62.90%

Volatility & Risk

Axalta Coating Systems has a beta of 1.24, indicating that its share price is 24% more volatile than the S&P 500. Comparatively, 5E Advanced Materials has a beta of 1.84, indicating that its share price is 84% more volatile than the S&P 500.

Insider & Institutional Ownership

98.3% of Axalta Coating Systems shares are held by institutional investors. 0.3% of Axalta Coating Systems shares are held by insiders. Comparatively, 0.2% of 5E Advanced Materials shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations and price targets for Axalta Coating Systems and 5E Advanced Materials, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Axalta Coating Systems	0	12	4	0	2.25
5E Advanced Materials	1	1	2	0	2.25

Axalta Coating Systems presently has a consensus price target of $34.15, suggesting a potential upside of 17.08%. 5E Advanced Materials has a consensus price target of $6.25, suggesting a potential upside of 201.93%. Given 5E Advanced Materials’ higher possible upside, analysts plainly believe 5E Advanced Materials is more favorable than Axalta Coating Systems.

Summary

Axalta Coating Systems beats 5E Advanced Materials on 10 of the 12 factors compared between the two stocks.

About Axalta Coating Systems

Axalta Coating Systems Ltd., through its subsidiaries, manufactures, markets, and distributes high-performance coatings systems in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. The company operates through two segments, Performance Coatings and Mobility Coatings. It also offers water and solvent-borne products and systems to repair damaged vehicles for independent body shops, multi-shop operators, and original equipment manufacturer (OEM) dealership body shops. In addition, the company provides functional and decorative liquid, and powder coatings used in various industrial applications, including building materials, cabinet, wood and luxury vinyl flooring and furniture market under the Voltatex, AquaEC, Durapon, Hydropon, UNRIVALED, Ceranamel, Industrial, Corlar Industrial, Tufcote, Imron Industrial, Alesta, Teodur, Nap-Gard, Abcite, and Plascoat brands for powder coatings. Further, it develops and supplies electrocoat, primer, the basecoat, and clearcoat products for OEMs of light and commercial vehicles; and coatings systems for various commercial applications, including HDT, MDT, bus, and rail under the Imron, Imron Elite, Centari, Rival, Corlar epoxy undercoats, and AquaEC brands. The company offers products under the Audurra, Abcite, Alesta, AquaEC, Centari, Ceranamel, Challenger, Chemophan, ColorNet, Cromax, Cromax Mosaic, Durapon 70, Duxone, Harmonized Coating Technologies, Imron ExcelPro, Lutophen, Nason, Spies Hecker, Standox, Stollaquid, Syntopal, Syrox, Raptor, U-POL, and Vermeera brand names. The company was formerly known as Axalta Coating Systems Bermuda Co., Ltd. and changed its name to Axalta Coating Systems Ltd. in August 2014. Axalta Coating Systems Ltd. was founded in 1866 and is headquartered in Glen Mills, Pennsylvania.

About 5E Advanced Materials

5E Advanced Materials, Inc. engages in the exploration and development of mineral properties in Australia and the United States. The company primarily explores for borates and lithium deposits. It holds 100% interest in the Fort Cady project located in the Mojave Desert region in eastern San Bernardino County, California. The company was formerly known as American Pacific Borates Limited. The company was incorporated in 2016 and is based in Hesperia, California.