Reviewing DXP Enterprises (DXPE) & Its Peers

DXP Enterprises (NASDAQ:DXPE) is one of 69 public companies in the “MACH – GENL INDL” industry, but how does it compare to its rivals? We will compare DXP Enterprises to related businesses based on the strength of its risk, dividends, analyst recommendations, profitability, institutional ownership, valuation and earnings.

Valuation & Earnings

This table compares DXP Enterprises and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
DXP Enterprises	$1.80 billion	$70.49 million	20.65
DXP Enterprises Competitors	$4.73 billion	$501.64 million	20.06

DXP Enterprises’ rivals have higher revenue and earnings than DXP Enterprises. DXP Enterprises is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Analyst Ratings

This is a summary of current recommendations for DXP Enterprises and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DXP Enterprises	0	0	1	0	3.00
DXP Enterprises Competitors	339	2456	3118	125	2.50

DXP Enterprises currently has a consensus target price of $95.00, suggesting a potential downside of 4.38%. As a group, “MACH – GENL INDL” companies have a potential upside of 12.76%. Given DXP Enterprises’ rivals higher possible upside, analysts clearly believe DXP Enterprises has less favorable growth aspects than its rivals.

Volatility & Risk

DXP Enterprises has a beta of 1.16, suggesting that its stock price is 16% more volatile than the S&P 500. Comparatively, DXP Enterprises’ rivals have a beta of 11.39, suggesting that their average stock price is 1,039% more volatile than the S&P 500.

Profitability

This table compares DXP Enterprises and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DXP Enterprises	4.27%	20.41%	6.55%
DXP Enterprises Competitors	8.57%	12.70%	7.08%

Insider and Institutional Ownership

74.8% of DXP Enterprises shares are owned by institutional investors. Comparatively, 73.4% of shares of all “MACH – GENL INDL” companies are owned by institutional investors. 22.4% of DXP Enterprises shares are owned by company insiders. Comparatively, 7.2% of shares of all “MACH – GENL INDL” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

DXP Enterprises rivals beat DXP Enterprises on 7 of the 13 factors compared.

DXP Enterprises Company Profile

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.