Ennis (NYSE:EBF) & CompX International (NYSE:CIX) Critical Analysis

CompX International (NYSE:CIX) and Ennis (NYSE:EBF) are both small-cap industrials companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, valuation, institutional ownership, dividends, risk, analyst recommendations and earnings.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for CompX International and Ennis, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CompX International	0	0	0	0	0.00
Ennis	0	1	0	0	2.00

Profitability

This table compares CompX International and Ennis’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CompX International	12.48%	11.51%	10.52%
Ennis	10.84%	13.89%	11.89%

Institutional & Insider Ownership

7.5% of CompX International shares are held by institutional investors. Comparatively, 74.3% of Ennis shares are held by institutional investors. 0.4% of CompX International shares are held by company insiders. Comparatively, 3.2% of Ennis shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares CompX International and Ennis”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CompX International	$158.58 million	2.20	$22.59 million	$1.64	17.26
Ennis	$392.40 million	1.41	$42.63 million	$1.67	13.06

Ennis has higher revenue and earnings than CompX International. Ennis is trading at a lower price-to-earnings ratio than CompX International, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

CompX International has a beta of 0.9, meaning that its stock price is 10% less volatile than the S&P 500. Comparatively, Ennis has a beta of 0.27, meaning that its stock price is 73% less volatile than the S&P 500.

Dividends

CompX International pays an annual dividend of $1.20 per share and has a dividend yield of 4.2%. Ennis pays an annual dividend of $1.00 per share and has a dividend yield of 4.6%. CompX International pays out 73.2% of its earnings in the form of a dividend. Ennis pays out 59.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. CompX International has increased its dividend for 1 consecutive years. Ennis is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Ennis beats CompX International on 10 of the 15 factors compared between the two stocks.

About CompX International

CompX International Inc. manufactures and sells security products and recreational marine components primarily in North America. It operates in two segments, Security Products and Marine Components. The Security Products segment manufactures mechanical and electrical cabinet locks, and other locking mechanisms used in various applications, including ignition systems, mailboxes, file cabinets, desk drawers, tool storage cabinets, high security medical cabinetry, integrated inventory and access control secured narcotics boxes, electrical circuit panels, storage compartments, gas station security, and vending and cash containment machines. This segment serves recreational transportation, postal, office and institutional furniture, cabinetry, tool storage, healthcare, and other industries. The Marine Components segment manufactures and distributes stainless steel exhaust headers, exhaust pipes, mufflers, and other exhaust components; gauges, such as GPS speedometers and tachometers; mechanical and electronic controls and throttles; wake enhancement systems, trim tabs, steering wheels, and billet aluminum accessories; dash panels, LED indicators, and wire harnesses; and grab handles, pin cleats, and related hardware and accessories primarily for ski/wakeboard and performance boats, as well as for the recreational marine and other industries. The company sells its products directly to original equipment manufacturers, as well as through distributors. The company was incorporated in 1993 and is based in Dallas, Texas. CompX International Inc. operates as a subsidiary of NL Industries, Inc.

About Ennis

Ennis, Inc. manufactures and sells business forms and other business products in the United States. The company offers snap sets, continuous forms, laser cut sheets, tags, labels, envelopes, integrated products, jumbo rolls, and pressure sensitive products under the Ennis, Royal Business Forms, Block Graphics, 360º Custom Labels, ColorWorx, Enfusion, Uncompromised Check Solutions, VersaSeal, Ad Concepts, FormSource Limited, Star Award Ribbon Company, Witt Printing, B&D Litho, Genforms, PrintGraphics, Calibrated Forms, PrintXcel, Printegra, Forms Manufacturers, Mutual Graphics, TRI-C Business Forms, Major Business Systems, Independent Printing, Hoosier Data Forms, Hayes Graphics, Wright Business Graphics, Wright 360, Integrated Print & Graphics, the Flesh Company, Impressions Direct, and AmeriPrint brands. It also provides point of purchase advertising under the Adams McClure brand name; presentation and document folders under the Admore, Folder Express, and Independent Folders brands; and custom printed, high-performance labels, and custom and stock tags under the Ennis Tag & Label brand name. In addition, the company offers custom and stock tags and labels under the Allen-Bailey Tag & Label, Atlas Tag & Label, Kay Toledo Tag, and Special Service Partners brands; custom and imprinted envelopes under the Trade Envelopes, Block Graphics, Wisco, and National Imprint Corporation brands; and financial and security documents under the Northstar and General Financial Supply brands; and custom and stock pressure seal documents under the Infoseal and PrintXcel brands. It distributes business products and forms through independent distributors, including business forms distributors, resellers, direct mail, commercial printers, payroll and accounts payable software companies, and advertising agencies. The company was formerly known as Ennis Business Forms, Inc. Ennis, Inc. was incorporated in 1909 and is headquartered in Midlothian, Texas.