Critical Review: Carlisle Companies (NYSE:CSL) vs. Addentax Group (NASDAQ:ATXG)

Carlisle Companies (NYSE:CSL) and Addentax Group (NASDAQ:ATXG) are both multi-sector conglomerates companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, risk, earnings, institutional ownership, dividends, valuation and profitability.

Volatility and Risk

Carlisle Companies has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500. Comparatively, Addentax Group has a beta of 0.48, suggesting that its stock price is 52% less volatile than the S&P 500.

Profitability

This table compares Carlisle Companies and Addentax Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Carlisle Companies	14.57%	43.78%	13.66%
Addentax Group	-182.28%	-17.86%	-10.90%

Valuation & Earnings

This table compares Carlisle Companies and Addentax Group”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Carlisle Companies	$5.02 billion	2.92	$740.70 million	$17.01	21.28
Addentax Group	$5.37 million	0.44	-$5.09 million	($12.74)	-0.24

Carlisle Companies has higher revenue and earnings than Addentax Group. Addentax Group is trading at a lower price-to-earnings ratio than Carlisle Companies, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Carlisle Companies and Addentax Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Carlisle Companies	0	6	5	0	2.45
Addentax Group	1	0	0	0	1.00

Carlisle Companies currently has a consensus target price of $405.00, suggesting a potential upside of 11.88%. Given Carlisle Companies’ stronger consensus rating and higher probable upside, equities research analysts plainly believe Carlisle Companies is more favorable than Addentax Group.

Institutional & Insider Ownership

89.5% of Carlisle Companies shares are held by institutional investors. Comparatively, 10.1% of Addentax Group shares are held by institutional investors. 1.3% of Carlisle Companies shares are held by company insiders. Comparatively, 2.7% of Addentax Group shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Carlisle Companies beats Addentax Group on 13 of the 14 factors compared between the two stocks.

About Carlisle Companies

Carlisle Companies Incorporated operates as a manufacturer and supplier of building envelope products and solutions in the United States, Europe, North America, Asia and the Middle East, Africa, and internationally. It operates through two segments: Carlisle Construction Materials and Carlisle Weatherproofing Technologies. The company produces single-ply roofing products, and warranted roof systems and accessories, including ethylene propylene diene monomer, thermoplastic polyolefin and polyvinyl chloride membrane, polyiso insulation, and engineered metal roofing and wall panel systems for commercial and residential buildings. It also offers building envelope solutions, including high-performance waterproofing and moisture protection products, protective roofing underlayments, fully integrated liquid and sheet applied air/vapor barriers, sealants/primers and flashing systems, roof coatings and mastics, spray polyurethane foam and coating systems, block-molded expanded polystyrene insulation, and engineered products for HVAC applications. It sells its products under the Carlisle SynTec, Versico, WeatherBond, Hunter Panels, Resitrix, and Hertalan brands. Carlisle Companies Incorporated was founded in 1917 and is headquartered in Scottsdale, Arizona.

About Addentax Group

Addentax Group Corp., together with its subsidiaries, operates as a logistic service provider in China. It operates through three segments: Garment Manufacturing, Logistics Services, and Property Management and Subleasing. The company manufactures and distributes garments; and provides logistic services, such as storage, transportation, warehousing, handling, packaging, and order processing, as well as customs declaration and tax clearance services. It also offers shop subleasing and property management services for garment wholesalers and retailers in the garment market. In addition, the company engages in the building decoration designing business. Addentax Group Corp. is based in Shenzhen, China.