Head to Head Review: XPEL (NASDAQ:XPEL) vs. Garrett Motion (NASDAQ:GTX)

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

Institutional & Insider Ownership

86.3% of Garrett Motion shares are owned by institutional investors. Comparatively, 75.1% of XPEL shares are owned by institutional investors. 1.1% of Garrett Motion shares are owned by insiders. Comparatively, 9.4% of XPEL shares are owned 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.

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%

Earnings & Valuation

This table compares Garrett Motion 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
Garrett Motion	$3.75 billion	1.34	$310.00 million	$1.82	14.87
XPEL	$508.09 million	2.44	$51.23 million	$1.97	22.83

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.

Analyst Ratings

This is a summary of current ratings and recommmendations for Garrett Motion and XPEL, as reported by MarketBeat.

	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 41.12%. XPEL has a consensus target price of $65.00, suggesting a potential upside of 44.54%. Given XPEL’s higher probable upside, analysts plainly believe XPEL is more favorable than Garrett Motion.

Risk & Volatility

Garrett Motion has a beta of 0.84, meaning that its stock price is 16% less volatile than the S&P 500. Comparatively, XPEL has a beta of 1.18, meaning that its stock price is 18% more volatile than the S&P 500.

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.