Contrasting NL Industries (NYSE:NL) and CAPITA (OTCMKTS:CTAGY)

NL Industries (NYSE:NL) and CAPITA (OTCMKTS:CTAGY) are both small-cap industrials companies, but which is the better business? We will compare the two companies based on the strength of their risk, analyst recommendations, institutional ownership, earnings, valuation, dividends and profitability.

Insider and Institutional Ownership

10.7% of NL Industries shares are held by institutional investors. 0.3% of NL Industries 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.

Profitability

This table compares NL Industries and CAPITA’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
NL Industries	-21.56%	-8.74%	-7.02%
CAPITA	N/A	N/A	N/A

Valuation & Earnings

This table compares NL Industries and CAPITA”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NL Industries	$158.58 million	1.77	-$37.83 million	($0.69)	-8.32
CAPITA	$3.05 billion	0.17	-$216.40 million	N/A	N/A

NL Industries has higher earnings, but lower revenue than CAPITA.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for NL Industries and CAPITA, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NL Industries	0	1	0	0	2.00
CAPITA	0	0	0	1	4.00

Risk and Volatility

NL Industries has a beta of 0.2, meaning that its stock price is 80% less volatile than the S&P 500. Comparatively, CAPITA has a beta of -0.65, meaning that its stock price is 165% less volatile than the S&P 500.

Summary

CAPITA beats NL Industries on 6 of the 11 factors compared between the two stocks.

About NL Industries

NL Industries, Inc., through its subsidiary, CompX International Inc., operates in the component products industry in Europe, North America, the Asia Pacific, and internationally. The company manufactures and sells mechanical and electronic cabinet locks and other locking mechanisms, including disc tumbler locks; pin tumbler locking mechanisms under KeSet, System 64, TuBar, and Turbine brands; and electronic locks under CompX eLock and StealthLock brands for use in various applications, such as mailboxes, ignition systems, file cabinets, desk drawers, tool storage cabinets, high security medical cabinetry, integrated inventory and access control secured narcotics boxes, electronic circuit panels, storage compartments, gas station security, vending and cash containment machines. It also offers original equipment and aftermarket 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 devices, trim tabs, steering wheels, and other billet aluminum accessories; dash panels, LED indicators, wire harnesses, and other accessories; and grab handles, pin cleats, and other accessories; primarily for performance and ski/wakeboard and performance boats. In addition, the company produces and markets value-added titanium dioxide pigments, a base industrial product used in imparting whiteness, brightness, opacity, and durability to a diverse range of customer applications and end-use markets, including coatings, plastics, paper, inks, cosmetics, pharmaceuticals, and other industrial and consumer products. The company sells its component products directly to original equipment manufacturers, as well as through distributors. NL Industries, Inc. was founded in 1891 and is based in Dallas, Texas. NL Industries, Inc. operates as a subsidiary of Valhi, Inc.

About CAPITA

Capita plc provides consulting, digital, and software products and services to clients in the private and public sectors in the United Kingdom and internationally. It operates in two divisions: Public Service and Capita Experience divisions. The company offers solutions for finance and accounting, procurement, property and infrastructure, travel and event, and workplace administration. It also provides customer experience transformation, contact management, collection and debt management, complaint handling, customer experience system and software, acquisition and retention, and data and analytics. In addition, the company offers licensing and support, support, digital policing, and engineering practice; learning and development services; education service and local education authority software; solutions for central and local government services; and business process services. Further, it provides pension administration and software, pensions consulting, and data solutions; finance software, automation, and management information systems solutions; cloud, cyber security, digital connectivity, IT services, robotic process automation, and workplace IT solutions; and actuarial, defence, financial, healthcare, housing, legal, public safety, retail, retail banking, utility, and welfare and employability services. The company was formerly known as The Capita Group plc and changed its name to Capita plc in January 2012. Capita plc was founded in 1984 and is based in London, the United Kingdom.