LCI Industries (NYSE:LCII) vs. XPEL (NASDAQ:XPEL) Critical Review

XPEL (NASDAQ:XPEL) and LCI Industries (NYSE:LCII) are both consumer discretionary companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, dividends, valuation, earnings and profitability.

Analyst Ratings

This is a summary of current ratings and price targets for XPEL and LCI Industries, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
XPEL	0	2	1	1	2.75
LCI Industries	1	6	3	0	2.20

XPEL presently has a consensus target price of $65.00, suggesting a potential upside of 45.38%. LCI Industries has a consensus target price of $126.25, suggesting a potential upside of 47.84%. Given LCI Industries’ higher probable upside, analysts clearly believe LCI Industries is more favorable than XPEL.

Risk and Volatility

XPEL has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500. Comparatively, LCI Industries has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500.

Earnings & Valuation

This table compares XPEL and LCI Industries”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
XPEL	$508.09 million	2.43	$51.23 million	$1.97	22.70
LCI Industries	$4.03 billion	0.52	$188.25 million	$8.60	9.93

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

Institutional & Insider Ownership

75.1% of XPEL shares are owned by institutional investors. Comparatively, 99.7% of LCI Industries shares are owned by institutional investors. 9.4% of XPEL shares are owned by company insiders. Comparatively, 3.3% of LCI Industries shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

This table compares XPEL and LCI Industries’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
XPEL	10.77%	18.98%	13.56%
LCI Industries	5.24%	14.33%	6.19%

Summary

XPEL beats LCI Industries on 8 of the 15 factors compared between the two stocks.

About XPEL

XPEL, Inc. sells, distributes, and installs protective films and coatings worldwide. The company offers automotive surface and paint protection film, headlight protection, and automotive and architectural window films, as well as proprietary DAP software. It also provides pre-cut film products, merchandise and apparel, ceramic coatings, and tools and accessories. In addition, the company offers paint protection kits, car wash products, after-care products, and installation tools through its website. The company sells and distributes its products through independent installers, new car dealerships, third-party distributors, automobile original equipment manufacturers, and company-owned installation centers, as well as through franchisees and online channels. The company serves in the United States, China, Canada, Continental Europe, the United Kingdom, Asia Pacific, Latin America, the Middle East/Africa, and internationally. XPEL, Inc. was founded in 1997 and is headquartered in San Antonio, Texas.

About LCI Industries

LCI Industries, together with its subsidiaries, manufactures and supplies engineered components for the manufacturers of recreational vehicles (RVs) and adjacent industries in the United States and internationally. It operates through two segments: Original Equipment Manufacturers (OEM) and Aftermarket. The OEM segment manufactures and distributes a range of engineered components, such as steel chassis and related components; axles, ABS, and suspension solutions; slide-out mechanisms and solutions; thermoformed bath, kitchen, and other products; vinyl, aluminum, and frameless windows; manual, electric, and hydraulic stabilizer and leveling systems; entry, luggage, patio, and ramp doors; furniture and mattresses; electric and manual entry steps; awnings and awning accessories; electronic components; appliances; air conditioners; televisions and sound systems; tankless water heaters; towing products; truck accessories; and other accessories. This segment serves OEMs of RVs and adjacent industries, including buses; trailers used to haul boats, livestock, equipment, and other cargo; trucks; boats; trains; manufactured homes; and modular housing. The Aftermarket segment supplies engineered components to aftermarket channels of the recreation and transportation markets for retail dealers, wholesale distributors, and service centers, as well as direct to retail customers through the Internet. This segment also sells replacement glass and awnings to fulfill insurance claims; and biminis, covers, buoys, fenders to the marine industry, towing products, truck accessories, appliances, air conditioners, televisions, sound systems, and tankless water heaters. The company was formerly known as Drew Industries Incorporated and changed its name to LCI Industries in December 2016. LCI Industries was founded in 1956 and is based in Elkhart, Indiana.