Head-To-Head Analysis: PPG Industries (PPG) & Axalta Coating Systems (AXTA)
PPG Industries (NYSE: PPG) and Axalta Coating Systems (NYSE:AXTA) are both mid-cap basic materials companies, but which is the better business? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, risk, valuation, profitability, institutional ownership and dividends.
Valuation & Earnings
This table compares PPG Industries and Axalta Coating Systems’ revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|PPG Industries||$14.75 billion||2.00||$877.00 million||$6.89||16.86|
|Axalta Coating Systems||$4.07 billion||1.93||$41.80 million||$0.24||134.80|
Volatility and Risk
PPG Industries has a beta of 1.59, meaning that its stock price is 59% more volatile than the S&P 500. Comparatively, Axalta Coating Systems has a beta of 1.55, meaning that its stock price is 55% more volatile than the S&P 500.
This table compares PPG Industries and Axalta Coating Systems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Axalta Coating Systems||1.46%||19.91%||4.30%|
PPG Industries pays an annual dividend of $1.80 per share and has a dividend yield of 1.5%. Axalta Coating Systems does not pay a dividend. PPG Industries pays out 26.1% of its earnings in the form of a dividend. Axalta Coating Systems has raised its dividend for 44 consecutive years.
This is a summary of current ratings for PPG Industries and Axalta Coating Systems, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Axalta Coating Systems||1||6||8||0||2.47|
PPG Industries currently has a consensus target price of $119.40, indicating a potential upside of 2.76%. Axalta Coating Systems has a consensus target price of $33.50, indicating a potential upside of 3.55%. Given Axalta Coating Systems’ higher possible upside, analysts clearly believe Axalta Coating Systems is more favorable than PPG Industries.
Institutional and Insider Ownership
75.1% of PPG Industries shares are held by institutional investors. Comparatively, 99.3% of Axalta Coating Systems shares are held by institutional investors. 0.7% of PPG Industries shares are held by company insiders. Comparatively, 2.3% of Axalta Coating Systems shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.
PPG Industries beats Axalta Coating Systems on 9 of the 16 factors compared between the two stocks.
PPG Industries Company Profile
PPG Industries, Inc. manufactures and distributes a range of coatings and specialty materials. The Company has two segments: Performance Coatings and Industrial Coatings. The Performance Coatings segment includes the refinish, aerospace, protective and marine, architectural businesses. The Industrial Coatings segment includes the automotive original equipment manufacturer (OEM), industrial coatings, packaging coatings, coatings services and specialty coatings and materials businesses. The Company’s geographical segments include the United States, Canada, Western Europe, Latin America, Central and Eastern Europe, the Middle East, Africa and Asia Pacific. The Company’s brands include PPG, GLIDDEN, COMEX, OLYMPIC, DULUX, SIKKENS, PPG PITTSBURGH PAINTS, MULCO, FLOOD, LIQUID NAILS, SICO, CIL, RENNER, TAUBMANS, WHITE KNIGHT, BRISTOL, HOMAX, DEKORAL, TRILAK, GORI, and BONDEX, among others.
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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