Critical Analysis: XPEL (NASDAQ:XPEL) vs. Camping World (NYSE:CWH)

Camping World (NYSE:CWH) and XPEL (NASDAQ:XPEL) are both small-cap auto/tires/trucks companies, but which is the better business? We will compare the two companies based on the strength of their profitability, analyst recommendations, dividends, earnings, risk, valuation and institutional ownership.

Profitability

This table compares Camping World and XPEL’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Camping World	-0.85%	3.80%	0.37%
XPEL	10.12%	19.20%	14.79%

Risk and Volatility

Camping World has a beta of 2.08, suggesting that its stock price is 108% more volatile than the S&P 500. Comparatively, XPEL has a beta of 1.26, suggesting that its stock price is 26% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings and recommmendations for Camping World and XPEL, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Camping World	1	2	8	0	2.64
XPEL	0	2	0	0	2.00

Camping World currently has a consensus target price of $17.67, suggesting a potential upside of 53.93%. Given Camping World’s stronger consensus rating and higher probable upside, equities analysts plainly believe Camping World is more favorable than XPEL.

Insider & Institutional Ownership

52.5% of Camping World shares are owned by institutional investors. Comparatively, 75.1% of XPEL shares are owned by institutional investors. 35.6% of Camping World shares are owned by insiders. Comparatively, 9.5% of XPEL shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation and Earnings

This table compares Camping World and XPEL”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Camping World	$6.10 billion	0.19	-$38.64 million	($0.93)	-12.34
XPEL	$420.40 million	3.54	$45.49 million	$1.69	31.79

XPEL has lower revenue, but higher earnings than Camping World. Camping World is trading at a lower price-to-earnings ratio than XPEL, indicating that it is currently the more affordable of the two stocks.

Summary

XPEL beats Camping World on 8 of the 14 factors compared between the two stocks.

About Camping World

Camping World Holdings, Inc., together its subsidiaries, retails recreational vehicles (RVs), and related products and services in the United States. It operates in two segments, Good Sam Services and Plans; and RV and Outdoor Retail. The company provides a portfolio of services, protection plans, products, and resources in the RV industry. It also offers extended vehicle service contracts; roadside assistance plans; property and casualty insurance programs; travel planning and directories; and publications, as well as operates the Coast to Coast Resorts and Good Sam Campgrounds. In addition, the company provides new and used RVs; vehicle financing; RV repair and maintenance services; various RV parts, equipment, supplies, and accessories, which include towing and hitching products, satellite and GPS systems, electrical and lighting products, appliances and furniture, and other products; and collision repair services comprising fiberglass front and rear cap replacement, windshield replacement, interior remodel solutions, and paint and body work. Further, it offers equipment, gears, and supplies for camping, hunting, fishing, skiing, snowboarding, bicycling, skateboarding, and marine and watersports equipment and supplies, as well as operates Good Sam Club, a membership organization that offers savings on a range of products and services and provides co-branded credit cards. Additionally, the company facilitates an RV rental platform that connects travelers with RV owners; and designs, manufactures, and distributes RV and camping furniture, as well as a range of outdoor products and accessories. It serves customers through dealerships, and online and e-commerce platforms. Camping World Holdings, Inc. was founded in 1966 and is headquartered in Lincolnshire, Illinois.

About XPEL

XPEL, Inc. sells, distributes, and installs protective films and coatings worldwide. The company offers automotive surface and paint protection film, headlight protection, and automotive and architectural window films, as well as proprietary DAP software. It also provides pre-cut film products, merchandise and apparel, ceramic coatings, and tools and accessories. In addition, the company offers paint protection kits, car wash products, after-care products, and installation tools through its website. The company sells and distributes its products through independent installers, new car dealerships, third-party distributors, automobile original equipment manufacturers, and company-owned installation centers, as well as through franchisees and online channels. The company serves in the United States, China, Canada, Continental Europe, the United Kingdom, Asia Pacific, Latin America, the Middle East/Africa, and internationally. XPEL, Inc. was founded in 1997 and is headquartered in San Antonio, Texas.