DXP Enterprises (NASDAQ:DXPE) and Systemax (NYSE:SYX) are both small-cap industrial products companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, valuation, analyst recommendations, risk, dividends, institutional ownership and profitability.
Systemax pays an annual dividend of $0.44 per share and has a dividend yield of 1.6%. DXP Enterprises does not pay a dividend. Systemax pays out 33.8% of its earnings in the form of a dividend.
This table compares DXP Enterprises and Systemax’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|DXP Enterprises||$1.01 billion||0.64||$16.88 million||$0.86||42.92|
|Systemax||$1.27 billion||0.80||$40.40 million||$1.30||20.97|
Systemax has higher revenue and earnings than DXP Enterprises. Systemax is trading at a lower price-to-earnings ratio than DXP Enterprises, indicating that it is currently the more affordable of the two stocks.
This table compares DXP Enterprises and Systemax’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk & Volatility
DXP Enterprises has a beta of 2.53, indicating that its stock price is 153% more volatile than the S&P 500. Comparatively, Systemax has a beta of 0.31, indicating that its stock price is 69% less volatile than the S&P 500.
This is a summary of current ratings and recommmendations for DXP Enterprises and Systemax, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
DXP Enterprises currently has a consensus price target of $49.00, suggesting a potential upside of 32.76%. Systemax has a consensus price target of $45.00, suggesting a potential upside of 65.08%. Given Systemax’s higher probable upside, analysts plainly believe Systemax is more favorable than DXP Enterprises.
Insider & Institutional Ownership
75.5% of DXP Enterprises shares are held by institutional investors. Comparatively, 28.4% of Systemax shares are held by institutional investors. 9.2% of DXP Enterprises shares are held by company insiders. Comparatively, 68.0% of Systemax shares are held by company 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.
Systemax beats DXP Enterprises on 11 of the 15 factors compared between the two stocks.
About DXP Enterprises
DXP Enterprises, Inc. engages in distributing maintenance, repair, and operating (MRO) products, equipment, and services to energy and industrial customers in the United States. It operates through three segments: Service Centers, Supply Chain Services, and Innovative Pumping Solutions. The Service Centers segment offers MRO products, equipment, and integrated services, including technical expertise and logistics services. It offers rotating equipment, bearing, power transmission, hose, fluid power, metal working, industrial supply, and safety products; and field safety supervision, in-house and field repair, and predictive maintenance services. This segment provides its MRO products for use in the oil and gas, food and beverage, petrochemical, transportation, and other general industrial industries, as well as for mining, construction, chemical, municipal, agriculture, and pulp and paper. The Supply Chain Services segment manages procurement and inventory management solutions; and offers inventory optimization and management, store room management, transaction consolidation and control, vendor oversight and procurement cost optimization, productivity improvement, and customized reporting services. This segment designs programs, such as SmartAgreement, a procurement solution for 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 Innovative Pumping Solutions segment provides pump packages comprising diesel and electric driven firewater, pipeline booster, potable water, pigging, lease automatic custody transfer charge unit, chemical injection wash down unit, seawater lift, jockey, condensate, cooling water, and seawater/produced water injection pump packages. The company was founded in 1908 and is headquartered in Houston, Texas.
Systemax Inc. operates as a direct marketer of brand name and private label products. Its Industrial Products Group segment sells a range of maintenance, repair, and operation products, including storage and shelving, material handling, janitorial and maintenance, furniture and office, HVAC/R and fans, workbench and shop desks, safety and security, outdoor and grounds maintenance, tools and instruments, office and school supplies, plumbing and pumps, packaging and supplies, electrical and lighting, food service and appliances, raw materials and building supplies, motors and power transmission, pneumatics and hydraulics, medical and laboratory equipment, metalworking and cutting tools, vehicle maintenance, and fasteners and hardware in North America. This segment offers its products under the Global, GlobalIndustrial.com, Nexel Relius, Relius Solutions, Paramount, and Interion brand names. The company's Europe Technology Products Group segment sells information and communication technology products, such as servers-storage and backup, desktop computers, laptops, tablets, monitors, and mobile devices; computer parts and memory; computer components and accessories; networking and security; software; and electronics, and commercial and home networking products. This segment also provides TV and video products; audio products; cameras and surveillance products; GPS products; cell phones; video games; and home and electronics accessories. The company offers its products to for-profit businesses, educational organizations, and government entities through its relationship marketers, catalog mailings, and proprietary Internet Websites. Systemax Inc. was founded in 1949 and is headquartered in Port Washington, New York.
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