Reviewing KLX (KLXI) & Comfort Systems USA (NYSE:FIX)
KLX (NASDAQ: KLXI) and Comfort Systems USA (NYSE:FIX) are both aerospace companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, earnings, valuation, risk, profitabiliy, analyst recommendations and dividends.
Institutional & Insider Ownership
94.1% of Comfort Systems USA shares are held by institutional investors. 1.8% of KLX shares are held by insiders. Comparatively, 3.5% of Comfort Systems USA shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
This is a summary of current recommendations and price targets for KLX and Comfort Systems USA, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Comfort Systems USA||0||2||3||0||2.60|
KLX currently has a consensus target price of $55.25, suggesting a potential upside of 4.80%. Comfort Systems USA has a consensus target price of $59.50, suggesting a potential upside of 75.26%. Given Comfort Systems USA’s higher probable upside, analysts clearly believe Comfort Systems USA is more favorable than KLX.
Valuation and Earnings
This table compares KLX and Comfort Systems USA’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|KLX||$1.55 billion||1.76||$221.40 million||$1.28||41.19|
|Comfort Systems USA||$1.67 billion||0.76||$129.25 million||$1.67||20.33|
KLX has higher revenue, but lower earnings than Comfort Systems USA. Comfort Systems USA is trading at a lower price-to-earnings ratio than KLX, indicating that it is currently the more affordable of the two stocks.
Comfort Systems USA pays an annual dividend of $0.30 per share and has a dividend yield of 0.9%. KLX does not pay a dividend. Comfort Systems USA pays out 18.0% of its earnings in the form of a dividend. KLX has raised its dividend for 4 consecutive years.
This table compares KLX and Comfort Systems USA’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Comfort Systems USA||3.77%||16.52%||8.35%|
Volatility & Risk
KLX has a beta of 1.28, indicating that its share price is 28% more volatile than the S&P 500. Comparatively, Comfort Systems USA has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500.
KLX Company Profile
KLX Inc. (KLX) is the distributor and service provider of aerospace fasteners and consumables. The Company offers ranges of aerospace hardware and consumables and inventory management services across the world. The Company operates through two segments: Aerospace Solutions Group (ASG) and Energy Services Group (ESG). The Company’s ASG segment service offerings include inventory management and replenishment, creative and differential supply chain solutions, such as third-party logistics programs, special packaging and bar-coding, parts kitting, quality assurance testing and a range of purchasing assistance programs, plus the electronic data interchange capability. The Company’s ESG segment products and services include onshore completion services, wireline services, fishing services and tools, down-hole completion and production services, pressure control, accommodations and related surface rental equipment, and remanufacturing shops.
Comfort Systems USA Company Profile
Comfort Systems USA, Inc. is a provider of mechanical contracting services, which principally includes heating, ventilation and air conditioning (HVAC), plumbing, piping and controls, as well as off-site construction, electrical, monitoring and fire protection. As of December 31, 2016, the Company installed, maintained, repaired and replaced products and systems throughout its 35 operating units in 84 cities and 91 locations throughout the United States. The Company operates primarily in the commercial, industrial and institutional HVAC markets and offers services in the industrial, healthcare, education, office, technology, retail and government facilities. The Company provides a range of construction, renovation, expansion, maintenance, repair and replacement services for mechanical and related systems in commercial, industrial and institutional properties. The Company also provides remote monitoring of temperature, pressure, humidity and air flow for HVAC systems.
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