Axalta Coating Systems (NYSE: AXTA) and The Valspar (NYSE:VAL) are both mid-cap basic materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, profitability, risk, valuation and earnings.
This table compares Axalta Coating Systems and The Valspar’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Axalta Coating Systems||1.46%||19.91%||4.30%|
99.3% of Axalta Coating Systems shares are owned by institutional investors. Comparatively, 69.6% of The Valspar shares are owned by institutional investors. 2.3% of Axalta Coating Systems shares are owned by insiders. Comparatively, 3.1% of The Valspar shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
The Valspar pays an annual dividend of $1.48 per share and has a dividend yield of 1.3%. Axalta Coating Systems does not pay a dividend. The Valspar pays out 35.7% of its earnings in the form of a dividend. The Valspar has increased its dividend for 35 consecutive years.
This is a breakdown of recent recommendations and price targets for Axalta Coating Systems and The Valspar, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Axalta Coating Systems||1||7||8||0||2.44|
Axalta Coating Systems currently has a consensus target price of $33.50, indicating a potential upside of 7.65%. The Valspar has a consensus target price of $111.00, indicating a potential downside of 1.76%. Given Axalta Coating Systems’ stronger consensus rating and higher probable upside, research analysts clearly believe Axalta Coating Systems is more favorable than The Valspar.
Valuation and Earnings
This table compares Axalta Coating Systems and The Valspar’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Axalta Coating Systems||$4.07 billion||1.86||$41.80 million||$0.24||129.67|
Axalta Coating Systems has higher revenue and earnings than The Valspar. The Valspar is trading at a lower price-to-earnings ratio than Axalta Coating Systems, indicating that it is currently the more affordable of the two stocks.
The Valspar beats Axalta Coating Systems on 7 of the 13 factors compared between the two stocks.
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).
The Valspar Company Profile
The Valspar Corporation is engaged in developing, manufacturing and distributing a range of coatings, paints and related products. The Company operates through two segments: Coatings and Paints. The Coatings segment includes its industrial product lines and packaging product line. The Company offers decorative and protective coatings for metal, wood and plastic primarily for sale to original equipment manufacturing (OEM) customers in Africa, Asia, Australia, Europe, North America and South America. The Paints segment includes consumer paints and automotive paint refinishes product lines. The Company offers a range of paints, primers, topcoats and aerosol spray paints through retailers, distribution networks and the Company-owned stores. The Company offers a portfolio of interior and exterior decorative paints, stains, primers, varnishes and specialty decorative products, such as enamels, aerosols and faux finishes, used in both the do-it-yourself and professional markets.
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