Reviewing Axion International (OTCMKTS:AXIH) & Trex (NYSE:TREX)

Axion International (OTCMKTS:AXIH) and Trex (NYSE:TREX) are both industrials companies, but which is the better stock? We will compare the two companies based on the strength of their risk, profitability, earnings, institutional ownership, analyst recommendations, valuation and dividends.

Earnings and Valuation

This table compares Axion International and Trex”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Axion International	N/A	N/A	N/A	N/A	N/A
Trex	$1.17 billion	4.40	$190.41 million	$1.68	29.60

Trex has higher revenue and earnings than Axion International.

Analyst Ratings

This is a breakdown of recent ratings and target prices for Axion International and Trex, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Axion International	0	0	0	0	0.00
Trex	2	9	10	1	2.45

Trex has a consensus target price of $49.30, indicating a potential downside of 0.87%. Given Axion International’s higher possible upside, analysts plainly believe Axion International is more favorable than Trex.

Institutional & Insider Ownership

96.0% of Trex shares are held by institutional investors. 0.9% of Trex shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Axion International and Trex’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Axion International	N/A	N/A	N/A
Trex	14.68%	18.03%	11.76%

Summary

Trex beats Axion International on 9 of the 10 factors compared between the two stocks.

About Axion International

Axion International Holdings, Inc. creates structural polymer solutions, engineering sustainable products and systems. The Company manufactures, markets and sells its structural polymer solutions across three product divisions, which include ECOTRAX Rail Products; STRUXURE Building Products and Structural Components. Its ECOTRAX rail products line is marketed as a solution for deterioration problems experienced by railroads across the globe. Its sells its ECOTRAX rail products line across five categories, which include main line ties; switch (i.e., long length) ties; road crossing ties; tunnel-ties and tunnel-tie system, and pre-plated ties. It designs and manufactures STRUXURE composite building products, including construction mats, vehicular bridge systems and commercial boardwalk systems. Its STRUXURE Structural components include boards, beams, headers, joists, planks and pilings. Its structural components are the same as used in its construction mats and structural systems.

About Trex

Trex Company, Inc. manufactures and distributes composite decking, railing, and outdoor living products and accessories for residential and commercial markets in the United States. It offers decking products and accessories under the names Trex Transcend, Trex Select, Trex Signature, Trex Transcend Lineage, and Trex Enhance for protection against fading, staining, mold, and scratching; Trex Hideaway, a hidden fastening system; and Trex DeckLighting, a LED dimmable deck lighting for use on posts, floors, and steps. The company also provides Trex Transcend Railing products that are used in Trex decking products and other decking materials; Trex Select Railing products for a simple clean finished look; Trex Enhance Railing system; Trex Signature aluminum railing for a contemporary look; and Trex Select T-Rail railing products. In addition, it offers Trex Seclusions, a fencing product that includes structural posts, bottom and top rails, pickets, and decorative post caps. Further, the company acts as a licensor in various licensing agreements with third parties to manufacture and sell products under the Trex name, including Trex Outdoor Furniture; Trex RainEscape, an above joist deck drainage system; Trex Pergola, a cellular PVC product; Trex Latticeworks outdoor lattice boards; Trex Cornhole boards; Diablo Trex Blade, a saw blade for wood-alternative composite decking; Trex SpiralStairs and structural steel posts; and Trex Outdoor Kitchens, cabinetry, and Storage products. It sells its products through wholesale distributors, retail lumber dealers, and Home Depot and Lowe’s stores. Trex Company, Inc. was founded in 1996 and is headquartered in Winchester, Virginia.