XPEL (NASDAQ:XPEL) and Garrett Motion (NASDAQ:GTX) Financial Comparison

Garrett Motion (NASDAQ:GTX) and XPEL (NASDAQ:XPEL) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their analyst recommendations, risk, earnings, dividends, institutional ownership, valuation and profitability.

Valuation & Earnings

This table compares Garrett Motion and XPEL”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Garrett Motion	$3.58 billion	1.37	$310.00 million	$1.82	14.42
XPEL	$476.20 million	2.57	$51.23 million	$1.97	22.55

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

Volatility and Risk

Garrett Motion has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500. Comparatively, XPEL has a beta of 1.18, indicating that its share price is 18% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Garrett Motion and XPEL, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Garrett Motion	0	1	5	1	3.00
XPEL	0	2	1	1	2.75

Garrett Motion presently has a consensus target price of $38.20, suggesting a potential upside of 45.58%. XPEL has a consensus target price of $65.00, suggesting a potential upside of 46.30%. Given XPEL’s higher possible upside, analysts clearly believe XPEL is more favorable than Garrett Motion.

Profitability

This table compares Garrett Motion and XPEL’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Garrett Motion	9.51%	-46.50%	14.80%
XPEL	10.77%	18.98%	13.56%

Insider and Institutional Ownership

86.3% of Garrett Motion shares are held by institutional investors. Comparatively, 75.1% of XPEL shares are held by institutional investors. 1.1% of Garrett Motion shares are held by insiders. Comparatively, 9.4% of XPEL shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Summary

XPEL beats Garrett Motion on 8 of the 14 factors compared between the two stocks.

About Garrett Motion

Garrett Motion Inc., together with its subsidiaries, designs, manufactures, and sells turbocharging, air and fluid compression, and high-speed electric motor technologies for original equipment manufacturers and distributors worldwide. The company offers cutting-edge technology for the mobility and industrial space, including light vehicles, commercial vehicles, and industrial applications. In addition, it provides mechanical and electrical products for turbocharging and boosting internal combustion engines, as well as compressing air for fuel cell compressors, and compressing refrigerant for electric cooling compressors. The company offers its products in the aftermarket through distributors. Garrett Motion Inc. was incorporated in 2018 and is based in Rolle, Switzerland.

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.