Contrasting Patrick Industries (NASDAQ:PATK) and XPEL (NASDAQ:XPEL)

XPEL (NASDAQ:XPEL) and Patrick Industries (NASDAQ:PATK) are both consumer discretionary companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, institutional ownership, analyst recommendations, earnings, profitability, dividends and valuation.

Volatility & Risk

XPEL has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500. Comparatively, Patrick Industries has a beta of 1.16, suggesting that its share price is 16% more volatile than the S&P 500.

Insider and Institutional Ownership

75.1% of XPEL shares are held by institutional investors. Comparatively, 93.3% of Patrick Industries shares are held by institutional investors. 9.4% of XPEL shares are held by insiders. Comparatively, 3.8% of Patrick Industries shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for XPEL and Patrick Industries, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
XPEL	0	2	1	1	2.75
Patrick Industries	1	2	7	0	2.60

XPEL currently has a consensus price target of $65.00, suggesting a potential upside of 47.44%. Patrick Industries has a consensus price target of $106.78, suggesting a potential upside of 50.50%. Given Patrick Industries’ higher probable upside, analysts clearly believe Patrick Industries is more favorable than XPEL.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
XPEL	10.77%	18.98%	13.56%
Patrick Industries	3.74%	12.69%	4.69%

Valuation and Earnings

This table compares XPEL and Patrick 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	2.55	$51.23 million	$1.97	22.38
Patrick Industries	$3.95 billion	0.58	$135.06 million	$4.22	16.81

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

Summary

XPEL beats Patrick Industries on 9 of the 15 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 Patrick Industries

Patrick Industries, Inc. manufactures and distributes component products and materials for the recreational vehicle, marine, manufactured housing, and industrial markets in the United States, Mexico, China, and Canada. Its Manufacturing segment manufactures and sells laminated products for furniture, shelving, wall, countertop, and cabinet products; cabinet doors, fiberglass bath fixtures, and tile systems; hardwood furniture, vinyl printing, amplifiers, tower speakers, soundbars, and subwoofers; solid surface, granite, and quartz countertop fabrication; aluminum products; fiberglass and plastic components; RV paintings; decorative vinyl and paper laminated panels; softwoods lumber; custom cabinets; polymer-based flooring products; dash panels; and other products. This segment also provides wrapped vinyl, paper, and hardwood profile mouldings; interior passage doors; air handling products; slide-out trim and fascia; treated, untreated, and laminated plywood; fiberglass and plastic helm systems and components; boat towers, tops, trailers, and frames; adhesives and sealants; thermoformed shower surrounds; specialty bath, and closet building products; wiring and wire harnesses; aluminum and plastic fuel tanks; CNC molds, composite parts, marine hardware; slotwall panels, components; and other products. The company's Distribution segment distributes pre-finished wall and ceiling panels, drywall and finishing products, electronic and audio system components, appliances, marine accessories, wiring products, electrical and plumbing products, fiber reinforced polyester products; cement siding products, raw and processed lumber, interior passage, roofing, laminate, and ceramic flooring products, shower doors, furniture, fireplaces and surrounds, interior and exterior lighting products, and other products. This segment also offers transportation and logistics services. Patrick Industries, Inc. was incorporated in 1959 and is based in Elkhart, Indiana.