Analyzing DXP Enterprises (DXPE) and MRC Global (MRC)
DXP Enterprises (NASDAQ: DXPE) and MRC Global (NYSE:MRC) are both small-cap industrial products companies, but which is the better investment? We will contrast the two companies based on the strength of their profitabiliy, earnings, dividends, analyst recommendations, risk, valuation and institutional ownership.
Risk and Volatility
DXP Enterprises has a beta of 2.67, indicating that its stock price is 167% more volatile than the S&P 500. Comparatively, MRC Global has a beta of 1.61, indicating that its stock price is 61% more volatile than the S&P 500.
Valuation & Earnings
This table compares DXP Enterprises and MRC Global’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|DXP Enterprises||$947.06 million||0.64||$59.03 million||$0.95||36.80|
|MRC Global||$3.12 billion||0.51||$45.00 million||($0.97)||-17.29|
DXP Enterprises has higher revenue, but lower earnings than MRC Global. MRC Global is trading at a lower price-to-earnings ratio than DXP Enterprises, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
73.9% of DXP Enterprises shares are owned by institutional investors. Comparatively, 97.0% of MRC Global shares are owned by institutional investors. 11.3% of DXP Enterprises shares are owned by insiders. Comparatively, 6.3% of MRC Global shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This table compares DXP Enterprises and MRC Global’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current ratings for DXP Enterprises and MRC Global, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
DXP Enterprises currently has a consensus target price of $41.00, indicating a potential upside of 17.28%. MRC Global has a consensus target price of $19.88, indicating a potential upside of 18.52%. Given MRC Global’s stronger consensus rating and higher probable upside, analysts clearly believe MRC Global is more favorable than DXP Enterprises.
DXP Enterprises beats MRC Global on 8 of the 13 factors compared between the two stocks.
DXP Enterprises Company Profile
DXP Enterprises, Inc. (DXP) is engaged in the business of distributing maintenance, repair and operating (MRO) products, equipment and service to industrial customers. The Company operates through three segments: Service Centers, Supply Chain Services and Innovative Pumping Solutions. The Service Centers segment provides MRO products, equipment and services, including technical expertise and logistics capabilities to industrial customers. The Supply Chain Services segment manages all or part of a customer’s supply chain, including procurement and inventory management. The Innovative Pumping Solutions segment provides source for engineering, systems design and fabrication. It operates from approximately 190 locations in over 40 states in the United States, approximately 10 provinces in Canada, Dubai and one state in Mexico. The Company’s product categories include rotating equipment, bearings & power transmission, industrial supplies, metal working and safety products & services.
MRC Global Company Profile
MRC Global Inc. is an industrial distributor of pipe, valves and fittings and related products and services to the energy industry. The Company’s segments include the U.S., Canada and International. Its U.S. segment includes the United States Eastern Region and Gulf Coast, and the United States Western Region. It provides services, such as product testing, manufacturer assessments, daily deliveries, volume purchasing, inventory and zone store management and warehousing, technical support, training, just-in-time delivery, truck stocking, order consolidation, product tagging and system interfaces customized to customer and supplier specifications for tracking and replenishing inventory, engineering of control packages, and valve inspection and repair. The Company’s principal product types include valves, automation, measurement and instrumentation; carbon steel fittings and flanges; stainless steel and alloy fittings, flanges and pipe; gas products; line pipe, and other.
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