Patrick Industries (NASDAQ:PATK) and XPEL (NASDAQ:XPEL) Head to Head Analysis

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

Volatility and Risk

Patrick Industries has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500. Comparatively, XPEL has a beta of 1.18, indicating that its stock price is 18% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for Patrick Industries and XPEL, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Patrick Industries	1	2	7	0	2.60
XPEL	0	2	1	1	2.75

Patrick Industries presently has a consensus target price of $104.56, indicating a potential upside of 48.39%. XPEL has a consensus target price of $65.00, indicating a potential upside of 53.30%. Given XPEL’s stronger consensus rating and higher probable upside, analysts plainly believe XPEL is more favorable than Patrick Industries.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Patrick Industries	$3.95 billion	0.57	$135.06 million	$4.22	16.70
XPEL	$476.20 million	2.45	$51.23 million	$1.97	21.52

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Patrick Industries	3.74%	12.69%	4.69%
XPEL	10.77%	18.98%	13.56%

Insider & Institutional Ownership

93.3% of Patrick Industries shares are owned by institutional investors. Comparatively, 75.1% of XPEL shares are owned by institutional investors. 3.8% of Patrick Industries shares are owned by insiders. Comparatively, 9.4% of XPEL 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.

Summary

XPEL beats Patrick Industries on 10 of the 15 factors compared between the two stocks.

About Patrick Industries

Patrick Industries, Inc. manufactures and distributes component products and materials for the recreational vehicle, marine, manufactured housing, and industrial markets in the United States, Mexico, China, and Canada. Its Manufacturing segment manufactures and sells laminated products for furniture, shelving, wall, countertop, and cabinet products; cabinet doors, fiberglass bath fixtures, and tile systems; hardwood furniture, vinyl printing, amplifiers, tower speakers, soundbars, and subwoofers; solid surface, granite, and quartz countertop fabrication; aluminum products; fiberglass and plastic components; RV paintings; decorative vinyl and paper laminated panels; softwoods lumber; custom cabinets; polymer-based flooring products; dash panels; and other products. This segment also provides wrapped vinyl, paper, and hardwood profile mouldings; interior passage doors; air handling products; slide-out trim and fascia; treated, untreated, and laminated plywood; fiberglass and plastic helm systems and components; boat towers, tops, trailers, and frames; adhesives and sealants; thermoformed shower surrounds; specialty bath, and closet building products; wiring and wire harnesses; aluminum and plastic fuel tanks; CNC molds, composite parts, marine hardware; slotwall panels, components; and other products. The company's Distribution segment distributes pre-finished wall and ceiling panels, drywall and finishing products, electronic and audio system components, appliances, marine accessories, wiring products, electrical and plumbing products, fiber reinforced polyester products; cement siding products, raw and processed lumber, interior passage, roofing, laminate, and ceramic flooring products, shower doors, furniture, fireplaces and surrounds, interior and exterior lighting products, and other products. This segment also offers transportation and logistics services. Patrick Industries, Inc. was incorporated in 1959 and is based in Elkhart, Indiana.

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.