XPEL (NASDAQ:XPEL – Get Free Report) and China Automotive Systems (NASDAQ:CAAS – Get Free Report) are both small-cap auto/tires/trucks companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, profitability, dividends, earnings, valuation and institutional ownership.
Risk & Volatility
XPEL has a beta of 1.68, indicating that its share price is 68% more volatile than the S&P 500. Comparatively, China Automotive Systems has a beta of 2.78, indicating that its share price is 178% more volatile than the S&P 500.
Valuation & Earnings
This table compares XPEL and China Automotive Systems”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| XPEL | $420.40 million | 2.23 | $45.49 million | $1.76 | 19.26 |
| China Automotive Systems | $650.93 million | 0.21 | $29.98 million | $0.97 | 4.62 |
XPEL has higher earnings, but lower revenue than China Automotive Systems. China Automotive Systems is trading at a lower price-to-earnings ratio than XPEL, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a summary of recent ratings and target prices for XPEL and China Automotive Systems, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| XPEL | 0 | 2 | 0 | 0 | 2.00 |
| China Automotive Systems | 0 | 1 | 0 | 0 | 2.00 |
Institutional & Insider Ownership
75.1% of XPEL shares are held by institutional investors. Comparatively, 5.2% of China Automotive Systems shares are held by institutional investors. 9.5% of XPEL shares are held by insiders. Comparatively, 64.8% of China Automotive Systems shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares XPEL and China Automotive Systems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| XPEL | 10.84% | 21.17% | 16.90% |
| China Automotive Systems | 4.22% | 7.39% | 3.49% |
Summary
XPEL beats China Automotive Systems on 8 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 China Automotive Systems
China Automotive Systems, Inc., through its subsidiaries, manufactures and sells automotive systems and components in the People's Republic of China, the United States, and internationally. It produces rack and pinion power steering gears for cars and light-duty vehicles; integral power steering gears for heavy-duty vehicles; power steering parts for light duty vehicles; sensor modules; automobile steering systems and columns; and automobile electronics and systems and parts. The company also offers automotive motors and electromechanical integrated systems; polymer materials; and intelligent automotive technology research and development services. In addition, it provides after sales services, and research and development support services; and inspection and testing of automotive products, as well as markets automotive parts in North America. The company primarily sells its products to the original equipment manufacturing customers. China Automotive Systems, Inc. is headquartered in Jingzhou, the People's Republic of China.
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