DXP Enterprises (NASDAQ:DXPE) & Doman Building Materials Group (OTCMKTS:CWXZF) Critical Analysis

DXP Enterprises (NASDAQ:DXPE) and Doman Building Materials Group (OTCMKTS:CWXZF) are both industrial products companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, valuation, dividends, risk and profitability.

Institutional and Insider Ownership

74.8% of DXP Enterprises shares are held by institutional investors. Comparatively, 21.8% of Doman Building Materials Group shares are held by institutional investors. 22.1% of DXP Enterprises shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current recommendations for DXP Enterprises and Doman Building Materials Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DXP Enterprises	0	0	1	0	3.00
Doman Building Materials Group	0	0	1	1	3.50

DXP Enterprises currently has a consensus price target of $55.00, suggesting a potential upside of 5.10%. Doman Building Materials Group has a consensus price target of $9.67, suggesting a potential upside of 70.19%. Given Doman Building Materials Group’s stronger consensus rating and higher probable upside, analysts clearly believe Doman Building Materials Group is more favorable than DXP Enterprises.

Profitability

This table compares DXP Enterprises and Doman Building Materials Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DXP Enterprises	4.10%	19.30%	6.66%
Doman Building Materials Group	N/A	N/A	N/A

Earnings & Valuation

This table compares DXP Enterprises and Doman Building Materials Group’s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DXP Enterprises	$1.68 billion	0.50	$68.81 million	$3.88	13.49
Doman Building Materials Group	N/A	N/A	N/A	$0.43	13.34

DXP Enterprises has higher revenue and earnings than Doman Building Materials Group. Doman Building Materials Group is trading at a lower price-to-earnings ratio than DXP Enterprises, indicating that it is currently the more affordable of the two stocks.

Summary

DXP Enterprises beats Doman Building Materials Group on 8 of the 11 factors compared between the two stocks.

About DXP Enterprises

DXP Enterprises, Inc., together with its subsidiaries, engages in distributing maintenance, repair, and operating (MRO) products, equipment, and services in the United States and Canada. It operates through three segments: Service Centers (SC), Supply Chain Services (SCS), and Innovative Pumping Solutions (IPS). The SC segment offers MRO products, equipment, and integrated services, including technical expertise and logistics services. It offers a range of MRO products in the rotating equipment, bearing, power transmission, hose, fluid power, metal working, fastener, industrial supply, safety products, and safety services categories. This segment serves customers in the oil and gas, food and beverage, petrochemical, transportation, other general industrial, mining, construction, chemical, municipal, agriculture, and pulp and paper industries. The SCS segment manages procurement and inventory vinventory optimization and management, storeroom management, transaction consolidation and control, vendor oversight and procurement cost optimization, productivity improvement, and customized reporting services. Its programs include SmartAgreement, a procurement solution for various MRO categories; SmartBuy, an on-site or centralized MRO procurement solution; SmartSource, an on-site procurement and storeroom management solution; SmartStore, an e-Catalog solution; SmartVend, an industrial dispensing solution; and SmartServ, an integrated service pump solution. The IPS segment fabricates and assembles custom-made pump packages; remanufactures pumps; and manufactures branded private label pumps. DXP Enterprises, Inc. was founded in 1908 and is based in Houston, Texas.

About Doman Building Materials Group

Doman Building Materials Group Ltd., through its subsidiaries, engages in the wholesale distribution of building materials and home renovation products in the United States and Canada. The company offers treated wood; siding and trim; decking and aluminum railing; engineered wood products; roofing products; insulation and wrap products; and lumber and plywood products. It is also involved in agricultural post-peeling and pressure treating activities, as well as timber ownership and management of private timberlands and forest licenses; and provides other value-add services. In addition, the company distributes lumber products. It sells its products to small independent lumber yards, regional building material dealers, home improvement chains, and retailers. The company serves its products to new home construction, home renovation, and industrial markets. The company was formerly known as CanWel Building Materials Group Ltd. and changed its name to Doman Building Materials Group Ltd. in May 2021. Doman Building Materials Group Ltd. was founded in 1989 and is headquartered in Vancouver, Canada.