Analyzing RPM International (RPM) & Axalta Coating Systems (AXTA)
RPM International (NYSE: RPM) and Axalta Coating Systems (NASDAQ:AXTA) are both mid-cap construction companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, valuation, analyst recommendations, institutional ownership, earnings, profitability and dividends.
RPM International pays an annual dividend of $1.20 per share and has a dividend yield of 2.4%. Axalta Coating Systems does not pay a dividend. RPM International pays out 90.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. RPM International has increased its dividend for 42 consecutive years.
Valuation & Earnings
This table compares RPM International and Axalta Coating Systems’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|RPM International||$4.96 billion||1.33||$638.94 million||$1.32||37.30|
|Axalta Coating Systems||$4.17 billion||1.71||$846.10 million||N/A||N/A|
Axalta Coating Systems has higher revenue, but lower earnings than RPM International.
This table compares RPM International and Axalta Coating Systems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Axalta Coating Systems||-1.73%||-6.61%||-1.20%|
Institutional and Insider Ownership
72.6% of RPM International shares are owned by institutional investors. 2.2% of RPM International shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
This is a summary of recent recommendations for RPM International and Axalta Coating Systems, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Axalta Coating Systems||1||7||7||0||2.40|
RPM International presently has a consensus price target of $57.20, indicating a potential upside of 16.17%. Axalta Coating Systems has a consensus price target of $33.07, indicating a potential upside of 12.49%. Given RPM International’s stronger consensus rating and higher probable upside, equities analysts clearly believe RPM International is more favorable than Axalta Coating Systems.
RPM International beats Axalta Coating Systems on 10 of the 15 factors compared between the two stocks.
RPM International Company Profile
RPM International Inc., through its subsidiaries, manufactures, markets and sells various specialty chemical product lines, including specialty paints, protective coatings, roofing systems, sealants and adhesives, focusing on the maintenance of industrial, specialty and consumer markets. The Company operates through three segments: the industrial reportable segment (industrial segment), the specialty reportable segment (specialty segment) and the consumer reportable segment (consumer segment). Its family of products includes those marketed under brand names, such as API, Carboline, CAVE, DAP, Day-Glo, Dri-Eaz, Dryvit, Euclid, EUCO, Fibergrate, Flecto, Flowcrete, Grupo PV, Hummervoll, illbruck, Mohawk, Rust-Oleum, Stonhard, TCI, Toxement, Tremco, Tuf-Strand, Universal Sealants, Viapol, Watco and Zinsser. As of May 31, 2016, its subsidiaries marketed products in approximately 164 countries and territories, and operated manufacturing facilities in approximately 120 locations.
Axalta Coating Systems Company Profile
Axalta Coating Systems Ltd. is a holding company. The Company is a manufacturer, marketer and distributor of coatings systems primarily serving the transportation industry. The Company’s segments include Performance Coatings and Transportation Coatings. Through its Performance Coatings segment, the Company provides liquid and powder coatings solutions to a fragmented and local customer base. Through its Transportation Coatings segment, the Company provides coating technologies to original equipment manufacturers (OEMs) of light and commercial vehicles. The Performance Coatings segment serves various end markets, including refinish and industrial. The Company develops, markets and supplies a portfolio of coatings systems and color matching technologies. The Company also develops and supplies an array of coatings systems for a range of commercial applications, including heavy-duty truck (HDT), bus, rail and agricultural construction equipment (ACE).
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