XPEL (NASDAQ:XPEL) & Federal Screw Works (OTCMKTS:FSCR) Head to Head Comparison

XPEL (NASDAQ:XPEL) and Federal Screw Works (OTCMKTS:FSCR) are both small-cap auto/tires/trucks companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, earnings, profitability, institutional ownership, valuation and analyst recommendations.

Profitability

This table compares XPEL and Federal Screw Works’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
XPEL	10.76%	19.51%	14.81%
Federal Screw Works	0.99%	N/A	N/A

Analyst Recommendations

This is a summary of current recommendations and price targets for XPEL and Federal Screw Works, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
XPEL	1	1	0	0	1.50
Federal Screw Works	0	0	0	0	0.00

Institutional and Insider Ownership

75.1% of XPEL shares are held by institutional investors. 9.5% of XPEL shares are held by insiders. Comparatively, 46.2% of Federal Screw Works shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares XPEL and Federal Screw Works”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
XPEL	$476.20 million	2.34	$51.23 million	$1.85	21.79
Federal Screw Works	$97.55 million	0.13	$1.62 million	$0.71	13.03

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

Risk and Volatility

XPEL has a beta of 1.29, suggesting that its stock price is 29% more volatile than the S&P 500. Comparatively, Federal Screw Works has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500.

Summary

XPEL beats Federal Screw Works on 11 of the 12 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 Federal Screw Works

Federal Screw Works manufactures and sells industrial component parts primarily to the automobile industry in the United States. It operates through Big Rapids, Romulus, Traverse City, and Novex Tool divisions. The company offers cold formed and machined pins, including piston pins, planetary and differential gear shafts, and oil pump and steering shafts for the automotive, refrigeration, and small engine industries; and cold formed machined products, such as suspension ball studs, fluid line adapters, and precision formed and machined valve lifter bodies to the automotive industry. It also provides close tolerance machined products that are used in transmission valves, ball joints, steering gear bulkhead assemblies, torque converter hubs, and piston pins; and engineered nut products comprising prevailing torque nuts, free spinning nuts, slotted nuts, nut retainer assemblies, and nut washer assemblies to the automotive industry. In addition, the company offers cold form tooling products, which include assemblies, sleeves, dies, and punches; and complex cold formed parts, such as tie rod housings, valve lifter bodies, and suspension components. Federal Screw Works was founded in 1917 and is based in Romulus, Michigan.