Financial Analysis: DXP Enterprises (DXPE) versus The Competition

DXP Enterprises (NASDAQ:DXPEGet Free Report) is one of 69 publicly-traded companies in the “MACH – GENL INDL” industry, but how does it weigh in compared to its peers? We will compare DXP Enterprises to similar businesses based on the strength of its risk, dividends, profitability, valuation, earnings, institutional ownership and analyst recommendations.

Insider & Institutional Ownership

74.8% of DXP Enterprises shares are held by institutional investors. Comparatively, 73.4% of shares of all “MACH – GENL INDL” companies are held by institutional investors. 22.7% of DXP Enterprises shares are held by insiders. Comparatively, 6.1% of shares of all “MACH – GENL INDL” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of current recommendations for DXP Enterprises and its peers, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DXP Enterprises 0 0 1 0 3.00
DXP Enterprises Competitors 337 2441 3096 123 2.50

DXP Enterprises currently has a consensus price target of $95.00, suggesting a potential upside of 7.88%. As a group, “MACH – GENL INDL” companies have a potential upside of 12.72%. Given DXP Enterprises’ peers higher probable upside, analysts clearly believe DXP Enterprises has less favorable growth aspects than its peers.

Profitability

This table compares DXP Enterprises and its peers’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
DXP Enterprises 4.27% 20.41% 6.55%
DXP Enterprises Competitors 8.57% 12.70% 7.08%

Volatility & Risk

DXP Enterprises has a beta of 1.17, suggesting that its stock price is 17% more volatile than the S&P 500. Comparatively, DXP Enterprises’ peers have a beta of 12.18, suggesting that their average stock price is 1,118% more volatile than the S&P 500.

Earnings & Valuation

This table compares DXP Enterprises and its peers top-line revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
DXP Enterprises $1.80 billion $70.49 million 18.31
DXP Enterprises Competitors $4.72 billion $501.64 million 19.62

DXP Enterprises’ peers have higher revenue and earnings than DXP Enterprises. DXP Enterprises is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

DXP Enterprises peers beat DXP Enterprises on 8 of the 13 factors compared.

DXP Enterprises Company Profile

(Get Free Report)

DXP Enterprises, Inc., together with its subsidiaries, engages in distributing maintenance, repair, and operating (MRO) products, equipment, and services in the United States and Canada. It operates through three segments: Service Centers (SC), Supply Chain Services (SCS), and Innovative Pumping Solutions (IPS). The SC segment offers MRO products, equipment, and integrated services, including technical expertise and logistics services. It offers a range of MRO products in the rotating equipment, bearing, power transmission, hose, fluid power, metal working, fastener, industrial supply, safety products, and safety services categories. This segment serves customers in the oil and gas, food and beverage, petrochemical, transportation, other general industrial, mining, construction, chemical, municipal, agriculture, and pulp and paper industries. The SCS segment manages procurement and inventory vinventory optimization and management, storeroom management, transaction consolidation and control, vendor oversight and procurement cost optimization, productivity improvement, and customized reporting services. Its programs include SmartAgreement, a procurement solution for various MRO categories; SmartBuy, an on-site or centralized MRO procurement solution; SmartSource, an on-site procurement and storeroom management solution; SmartStore, an e-Catalog solution; SmartVend, an industrial dispensing solution; and SmartServ, an integrated service pump solution. The IPS segment fabricates and assembles custom-made pump packages; remanufactures pumps; and manufactures branded private label pumps. DXP Enterprises, Inc. was founded in 1908 and is based in Houston, Texas.

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