Critical Review: XPEL (NASDAQ:XPEL) versus Miller Industries (NYSE:MLR)

XPEL (NASDAQ:XPEL) and Miller Industries (NYSE:MLR) are both small-cap auto/tires/trucks companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.

Institutional and Insider Ownership

75.1% of XPEL shares are owned by institutional investors. Comparatively, 79.2% of Miller Industries shares are owned by institutional investors. 9.5% of XPEL shares are owned by company insiders. Comparatively, 4.5% of Miller Industries shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility & Risk

XPEL has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500. Comparatively, Miller Industries has a beta of 1.11, meaning that its stock price is 11% more volatile than the S&P 500.

Valuation & Earnings

This table compares XPEL and Miller Industries”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
XPEL	$476.20 million	2.61	$51.23 million	$1.91	23.63
Miller Industries	$790.27 million	0.70	$23.01 million	$1.34	36.36

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

Profitability

This table compares XPEL and Miller Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
XPEL	10.82%	19.14%	14.29%
Miller Industries	2.08%	3.70%	2.58%

Analyst Recommendations

This is a breakdown of current ratings and price targets for XPEL and Miller Industries, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
XPEL	0	3	0	0	2.00
Miller Industries	1	1	1	0	2.00

Miller Industries has a consensus price target of $50.00, suggesting a potential upside of 2.61%. Given Miller Industries’ higher probable upside, analysts plainly believe Miller Industries is more favorable than XPEL.

Summary

XPEL beats Miller Industries on 7 of the 12 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 Miller Industries

Miller Industries, Inc., together with its subsidiaries, manufactures and sells towing and recovery equipment. The company offers wreckers that are used to recover and tow disabled vehicles and other equipment; and car carriers, which are specialized flat-bed vehicles with hydraulic tilt mechanisms, which are used to transport new or disabled vehicles and other equipment. It also provides transport trailers for moving various vehicles for auto auctions, car dealerships, leasing companies, and other similar operations. The company markets its products under the Century, Vulcan, Challenger, Holmes, Champion, Chevron, Eagle, Titan, Jige, and Boniface brands. Miller Industries, Inc. sells its products through independent distributors in North America, and Canada, Mexico; and through prime contractors to governmental entities. Miller Industries, Inc. was incorporated in 1990 and is headquartered in Ooltewah, Tennessee.