Head to Head Review: Doman Building Materials Group (OTCMKTS:CWXZF) vs. DXP Enterprises (NASDAQ:DXPE)

Doman Building Materials Group (OTCMKTS:CWXZF) and DXP Enterprises (NASDAQ:DXPE) are both industrials companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, profitability, earnings, analyst recommendations, valuation and institutional ownership.

Insider & Institutional Ownership

21.8% of Doman Building Materials Group shares are held by institutional investors. Comparatively, 74.8% of DXP Enterprises shares are held by institutional investors. 22.1% of DXP Enterprises shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Doman Building Materials Group and DXP Enterprises’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Doman Building Materials Group	N/A	N/A	N/A
DXP Enterprises	4.10%	19.30%	6.66%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Doman Building Materials Group and DXP Enterprises, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Doman Building Materials Group	0	0	1	1	3.50
DXP Enterprises	0	0	1	0	3.00

Doman Building Materials Group presently has a consensus price target of $9.67, suggesting a potential upside of 70.19%. DXP Enterprises has a consensus price target of $55.00, suggesting a potential upside of 5.10%. Given Doman Building Materials Group’s stronger consensus rating and higher possible upside, equities analysts plainly believe Doman Building Materials Group is more favorable than DXP Enterprises.

Valuation and Earnings

This table compares Doman Building Materials Group and DXP Enterprises’ top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Doman Building Materials Group	N/A	N/A	N/A	$0.43	13.34
DXP Enterprises	$1.68 billion	0.50	$68.81 million	$3.88	13.49

DXP Enterprises has higher revenue and earnings than Doman Building Materials Group. Doman Building Materials Group is trading at a lower price-to-earnings ratio than DXP Enterprises, indicating that it is currently the more affordable of the two stocks.

Summary

DXP Enterprises beats Doman Building Materials Group on 8 of the 11 factors compared between the two stocks.

About Doman Building Materials Group

Doman Building Materials Group Ltd., through its subsidiaries, engages in the wholesale distribution of building materials and home renovation products in the United States and Canada. The company offers treated wood; siding and trim; decking and aluminum railing; engineered wood products; roofing products; insulation and wrap products; and lumber and plywood products. It is also involved in agricultural post-peeling and pressure treating activities, as well as timber ownership and management of private timberlands and forest licenses; and provides other value-add services. In addition, the company distributes lumber products. It sells its products to small independent lumber yards, regional building material dealers, home improvement chains, and retailers. The company serves its products to new home construction, home renovation, and industrial markets. The company was formerly known as CanWel Building Materials Group Ltd. and changed its name to Doman Building Materials Group Ltd. in May 2021. Doman Building Materials Group Ltd. was founded in 1989 and is headquartered in Vancouver, Canada.

About DXP Enterprises

DXP Enterprises, Inc., together with its subsidiaries, engages in distributing maintenance, repair, and operating (MRO) products, equipment, and services in the United States and Canada. It operates through three segments: Service Centers (SC), Supply Chain Services (SCS), and Innovative Pumping Solutions (IPS). The SC segment offers MRO products, equipment, and integrated services, including technical expertise and logistics services. It offers a range of MRO products in the rotating equipment, bearing, power transmission, hose, fluid power, metal working, fastener, industrial supply, safety products, and safety services categories. This segment serves customers in the oil and gas, food and beverage, petrochemical, transportation, other general industrial, mining, construction, chemical, municipal, agriculture, and pulp and paper industries. The SCS segment manages procurement and inventory vinventory optimization and management, storeroom management, transaction consolidation and control, vendor oversight and procurement cost optimization, productivity improvement, and customized reporting services. Its programs include SmartAgreement, a procurement solution for various MRO categories; SmartBuy, an on-site or centralized MRO procurement solution; SmartSource, an on-site procurement and storeroom management solution; SmartStore, an e-Catalog solution; SmartVend, an industrial dispensing solution; and SmartServ, an integrated service pump solution. The IPS segment fabricates and assembles custom-made pump packages; remanufactures pumps; and manufactures branded private label pumps. DXP Enterprises, Inc. was founded in 1908 and is based in Houston, Texas.