NL Industries (NYSE: NL) is one of 46 publicly-traded companies in the “Electrical Components & Equipment” industry, but how does it weigh in compared to its rivals? We will compare NL Industries to related companies based on the strength of its valuation, earnings, risk, dividends, institutional ownership, analyst recommendations and profitability.

Risk and Volatility

NL Industries has a beta of 2.75, suggesting that its stock price is 175% more volatile than the S&P 500. Comparatively, NL Industries’ rivals have a beta of 1.30, suggesting that their average stock price is 30% more volatile than the S&P 500.

Institutional and Insider Ownership

9.6% of NL Industries shares are held by institutional investors. Comparatively, 66.9% of shares of all “Electrical Components & Equipment” companies are held by institutional investors. 0.1% of NL Industries shares are held by company insiders. Comparatively, 6.4% of shares of all “Electrical Components & Equipment” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for NL Industries and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NL Industries 1 0 0 0 1.00
NL Industries Competitors 258 1060 1241 13 2.39

NL Industries presently has a consensus target price of $6.00, indicating a potential downside of 38.78%. As a group, “Electrical Components & Equipment” companies have a potential upside of 2.15%. Given NL Industries’ rivals stronger consensus rating and higher probable upside, analysts clearly believe NL Industries has less favorable growth aspects than its rivals.

Profitability

This table compares NL Industries and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NL Industries 57.98% 32.04% 16.44%
NL Industries Competitors -3.72% 5.18% 2.02%

Valuation & Earnings

This table compares NL Industries and its rivals gross revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
NL Industries $114.69 million $8.15 million 7.15
NL Industries Competitors $1.87 billion $295.25 million -37.13

NL Industries’ rivals have higher revenue and earnings than NL Industries. NL Industries is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

NL Industries rivals beat NL Industries on 8 of the 13 factors compared.

About NL Industries

NL Industries, Inc. is a holding company. The Company operates in the component products industry through its subsidiary, CompX International Inc. (CompX). The Company operates in the chemicals industry through its non-controlling interest in Kronos Worldwide, Inc. (Kronos). The Company, through Compx, manufactures engineered components that are sold to a range of industries, including recreational transportation (including boats), postal, office and institutional furniture, cabinetry, tool storage, healthcare, gas stations and vending equipment. Kronos is a global producer and marketer of value-added titanium dioxide pigments (TiO2), a base industrial product used in imparting whiteness, brightness and opacity to a range of customer applications and end use markets, including coatings, plastics, paper, inks, food, cosmetics, and other industrial and consumer products. Kronos has production facilities in Europe and North America.

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