Reviewing Anixter International (AXE) & NL Industries (NL)

Anixter International (NYSE: AXE) and NL Industries (NYSE:NL) are both computer and technology companies, but which is the superior investment? We will compare the two businesses based on the strength of their valuation, earnings, profitability, dividends, risk, analyst recommendations and institutional ownership.

Profitability

This table compares Anixter International and NL Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Anixter International 1.86% 12.52% 4.14%
NL Industries 57.98% 32.04% 16.44%

Institutional and Insider Ownership

85.4% of Anixter International shares are owned by institutional investors. Comparatively, 9.5% of NL Industries shares are owned by institutional investors. 14.7% of Anixter International shares are owned by company insiders. Comparatively, 0.1% of NL Industries shares are owned by company 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.

Earnings and Valuation

This table compares Anixter International and NL Industries’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Anixter International $7.75 billion 0.30 $382.00 million $4.29 16.06
NL Industries $114.69 million 5.95 $8.15 million $1.37 10.22

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

Risk & Volatility

Anixter International has a beta of 2.03, suggesting that its stock price is 103% more volatile than the S&P 500. Comparatively, NL Industries has a beta of 2.75, suggesting that its stock price is 175% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations and price targets for Anixter International and NL Industries, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Anixter International 0 4 1 0 2.20
NL Industries 1 0 0 0 1.00

Anixter International currently has a consensus target price of $86.00, suggesting a potential upside of 24.82%. NL Industries has a consensus target price of $6.00, suggesting a potential downside of 57.14%. Given Anixter International’s stronger consensus rating and higher possible upside, analysts plainly believe Anixter International is more favorable than NL Industries.

Summary

Anixter International beats NL Industries on 9 of the 14 factors compared between the two stocks.

About Anixter International

Anixter International Inc. is engaged in the distribution of enterprise cabling and security solutions, electrical and electronic wire and cable products and utility power solutions. The Company operates through three segments: Network & Security Solutions (NSS), Electrical & Electronic Solutions (EES), and Utility Power Solutions (UPS). The NSS segment’s product portfolio includes access control, power, cable management, wireless, professional audio/video, voice and networking switches, and other ancillary products. The EES segment’s product portfolio includes electrical and electronic wire and cable, shipboard cable, support and supply products, low-voltage cable, instrumentation cable, industrial communication and control products, security cable, connectors, industrial Ethernet switches, and voice and data cable. The UPS segment supplies electrical transmission and distribution products, power plant maintenance, repair and operations supplies, and smart-grid products.

About NL Industries

NL Industries, Inc. is a holding company. The Company operates in the component products industry through its subsidiary, CompX International Inc. (CompX). The Company operates in the chemicals industry through its non-controlling interest in Kronos Worldwide, Inc. (Kronos). The Company, through Compx, manufactures engineered components that are sold to a range of industries, including recreational transportation (including boats), postal, office and institutional furniture, cabinetry, tool storage, healthcare, gas stations and vending equipment. Kronos is a global producer and marketer of value-added titanium dioxide pigments (TiO2), a base industrial product used in imparting whiteness, brightness and opacity to a range of customer applications and end use markets, including coatings, plastics, paper, inks, food, cosmetics, and other industrial and consumer products. Kronos has production facilities in Europe and North America.

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