Analyzing Nano Magic (OTCMKTS:NMGX) and XPEL (OTCMKTS:XPEL)

Nano Magic (OTCMKTS:NMGX) and XPEL (NASDAQ:XPEL) are both small-cap computer and technology companies, but which is the better stock? We will compare the two companies based on the strength of their institutional ownership, dividends, earnings, profitability, analyst recommendations, valuation and risk.

Profitability

This table compares Nano Magic and XPEL’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Nano Magic -43.76% N/A -74.01%
XPEL 10.55% 44.17% 26.89%

Valuation & Earnings

This table compares Nano Magic and XPEL’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Nano Magic $2.44 million 3.28 -$960,000.00 N/A N/A
XPEL $129.93 million 5.48 $13.98 million $0.51 50.57

XPEL has higher revenue and earnings than Nano Magic.

Institutional and Insider Ownership

19.3% of XPEL shares are owned by institutional investors. 41.6% of Nano Magic shares are owned by company insiders. Comparatively, 40.2% of XPEL shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility & Risk

Nano Magic has a beta of -0.84, meaning that its share price is 184% less volatile than the S&P 500. Comparatively, XPEL has a beta of 2.05, meaning that its share price is 105% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Nano Magic and XPEL, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Nano Magic 0 0 0 0 N/A
XPEL 0 0 1 0 3.00

XPEL has a consensus price target of $17.00, indicating a potential downside of 34.08%. Given XPEL’s higher probable upside, analysts clearly believe XPEL is more favorable than Nano Magic.

Summary

XPEL beats Nano Magic on 10 of the 11 factors compared between the two stocks.

Nano Magic Company Profile

Nano Magic Inc. develops, commercializes, and markets consumer and industrial products enabled by nanotechnology primarily in the United States. It operates through two segments, Product and Contract Services. The company offers anti-fogging towelettes to the military for safety, anti-fogging, and conditioning of lenses, masks, and head gears, as well as other applications, such as head's up displays; mar and stain resistant coatings for high end vitreous China tableware in restaurants, cruise ships, and casinos; clear protective coatings used on display panels and touch screens to remove fingerprints; protective and water repelling coatings for interior glass and ceramic surfaces to clean and prevent scale and grime encrustation; and coatings for ceramic insulators for use in transit and underground subways systems to prevent caking of metal dust and greases on surfaces. It is also involved in the retail sale of liquid and towelette formulations for eyeglass and sunglass lens cleaning and protection; liquid formulation for cleaning and creating hygienic surfaces unfriendly to germs; and anti-fogging liquid and towelette formulations for safety glasses and sporting googles, as well as protective eye wear, including face shields. In addition, the company develops and sells printable inks and pastes, thermal management materials, and graphene foils and windows. Further, it provides design and development services for governmental and private customers. The company markets and sells its products directly to retailers. The company was formerly known as PEN Inc. and changed its name to Nano Magic Inc. in March 2020. Nano Magic Inc. is based in Bloomfield Hills, Michigan.

XPEL Company Profile

XPEL, Inc. manufactures, sells, distributes, and installs after-market automotive products in the United States, China, Canada, Continental Europe, the United Kingdom, Asia Pacific, Latin America, the Middle East/Africa, and internationally. The company offers automotive surface and paint protection, headlight protection, and automotive and architectural window films, as well as proprietary software. It also provides merchandise and apparel, aftercare products, and ceramic coatings. In addition, the company offers paint protection kits, car wash products, after-care products, and installation tools through its website. It sells its products to independent installers and new car dealerships, third party distributors, owned installation centers, and franchisees and online. XPEL, Inc. was founded in 1999 and is headquartered in San Antonio, Texas.

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