Head to Head Review: Trex (NYSE:TREX) versus Axion International (OTCMKTS:AXIH)

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

Institutional & Insider Ownership

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

Profitability

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

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

Analyst Recommendations

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

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

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

Earnings and Valuation

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

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

Trex has higher revenue and earnings than Axion International.

Summary

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

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.

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.