Head-To-Head Comparison: Axalta Coating Systems (AXTA) vs. RPM International (RPM)
Axalta Coating Systems (NYSE: AXTA) and RPM International (NYSE:RPM) are both mid-cap basic materials companies, but which is the better business? We will compare the two businesses based on the strength of their dividends, earnings, risk, analyst recommendations, valuation, institutional ownership and profitability.
Earnings and Valuation
This table compares Axalta Coating Systems and RPM International’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Axalta Coating Systems||$4.07 billion||1.89||$41.80 million||$0.24||131.46|
|RPM International||$4.96 billion||1.41||$181.82 million||$1.29||40.67|
Institutional & Insider Ownership
99.3% of Axalta Coating Systems shares are owned by institutional investors. Comparatively, 75.5% of RPM International shares are owned by institutional investors. 2.3% of Axalta Coating Systems shares are owned by insiders. Comparatively, 2.1% of RPM International shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
This table compares Axalta Coating Systems and RPM International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Axalta Coating Systems||1.46%||19.91%||4.30%|
Risk & Volatility
Axalta Coating Systems has a beta of 1.55, meaning that its share price is 55% more volatile than the S&P 500. Comparatively, RPM International has a beta of 1.53, meaning that its share price is 53% more volatile than the S&P 500.
This is a summary of recent ratings and target prices for Axalta Coating Systems and RPM International, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Axalta Coating Systems||1||6||8||0||2.47|
Axalta Coating Systems currently has a consensus target price of $33.50, indicating a potential upside of 6.18%. RPM International has a consensus target price of $57.33, indicating a potential upside of 9.27%. Given RPM International’s higher probable upside, analysts clearly believe RPM International is more favorable than Axalta Coating Systems.
RPM International pays an annual dividend of $1.28 per share and has a dividend yield of 2.4%. Axalta Coating Systems does not pay a dividend. RPM International pays out 99.2% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Axalta Coating Systems has increased its dividend for 42 consecutive years.
Axalta Coating Systems beats RPM International on 9 of the 17 factors compared between the two stocks.
About Axalta Coating Systems
Axalta Coating Systems Ltd. is a holding company. The Company is a manufacturer, marketer and distributor of coatings systems primarily serving the transportation industry. The Company’s segments include Performance Coatings and Transportation Coatings. Through its Performance Coatings segment, the Company provides liquid and powder coatings solutions to a fragmented and local customer base. Through its Transportation Coatings segment, the Company provides coating technologies to original equipment manufacturers (OEMs) of light and commercial vehicles. The Performance Coatings segment serves various end markets, including refinish and industrial. The Company develops, markets and supplies a portfolio of coatings systems and color matching technologies. The Company also develops and supplies an array of coatings systems for a range of commercial applications, including heavy-duty truck (HDT), bus, rail and agricultural construction equipment (ACE).
About RPM International
RPM International Inc., through its subsidiaries, manufactures, markets and sells various specialty chemical product lines, including specialty paints, protective coatings, roofing systems, sealants and adhesives, focusing on the maintenance of industrial, specialty and consumer markets. The Company operates through three segments: the industrial reportable segment (industrial segment), the specialty reportable segment (specialty segment) and the consumer reportable segment (consumer segment). Its family of products includes those marketed under brand names, such as API, Carboline, CAVE, DAP, Day-Glo, Dri-Eaz, Dryvit, Euclid, EUCO, Fibergrate, Flecto, Flowcrete, Grupo PV, Hummervoll, illbruck, Mohawk, Rust-Oleum, Stonhard, TCI, Toxement, Tremco, Tuf-Strand, Universal Sealants, Viapol, Watco and Zinsser. As of May 31, 2016, its subsidiaries marketed products in approximately 164 countries and territories, and operated manufacturing facilities in approximately 120 locations.
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