XPEL (NASDAQ:XPEL) and PEN (OTCMKTS:PENC) are both small-cap auto/tires/trucks companies, but which is the better investment? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, earnings, profitability and institutional ownership.

Analyst Ratings

This is a summary of current recommendations for XPEL and PEN, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
XPEL 0 0 2 0 3.00
PEN 0 0 0 0 N/A

XPEL presently has a consensus target price of $16.50, suggesting a potential upside of 66.50%. Given XPEL’s higher possible upside, research analysts clearly believe XPEL is more favorable than PEN.

Profitability

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

Net Margins Return on Equity Return on Assets
XPEL N/A N/A N/A
PEN -14.10% N/A -24.11%

Earnings & Valuation

This table compares XPEL and PEN’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
XPEL $129.93 million 2.11 $13.98 million $0.51 19.43
PEN $4.33 million 2.30 -$50,000.00 N/A N/A

XPEL has higher revenue and earnings than PEN.

Institutional and Insider Ownership

13.8% of XPEL shares are owned by institutional investors. 56.0% of PEN shares are owned by company 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 PEN on 7 of the 9 factors compared between the two stocks.

About XPEL

XPEL, Inc. manufactures, sells, distributes, and installs after-market automotive products in the United States, Canada, the United Kingdom, and the Netherlands. The company offers paint protection films; headlight protection; automotive window films; and plotters. It also provides apparel, merchandise, aftercare products, paint protection films, microfiber products, install tools, and paint protection film install tolls through online. In addition, the company offers installation services and installation training courses; and operates installation centers that serve wholesale and/or retail customers. It sells its products directly to independent installers and new car dealerships, as well as through third party distributors. XPEL, Inc. was founded in 1999 and is headquartered in San Antonio, Texas.

About PEN

PEN Inc. develops, commercializes, and markets consumer and industrial products enabled by nanotechnology primarily in the United States. It operates through two segments, Product and Contract Services. The company offers anti-fogging towelettes to the military for safety, anti-fogging, and conditioning of lenses, masks, and head gears, as well as other applications, such as head's up displays; mar and stain resistant coatings for high end vitreous China tableware in restaurants, cruise ships, and casinos; clear protective coatings used on display panels and touch screens to remove fingerprints; protective and water repelling coatings for interior glass and ceramic surfaces to clean and prevent scale and grime encrustation; and coatings for ceramic insulators for use in transit and underground subways systems to prevent caking of metal dust and greases on surfaces. It is also involved in the retail sale of liquid and towelette formulations for eyeglass and sunglass lens cleaning and protection; liquid formulation for cleaning and creating hygienic surfaces unfriendly to germs; and anti-fogging liquid and towelette formulations for safety glasses and sporting googles, as well as protective eye wear, including face shields. In addition, the company develops and sells printable inks and pastes, thermal management materials, and graphene foils and windows. Further, it provides design and development services for governmental and private customers. The company markets and sells its products directly to retailers. PEN Inc. is headquartered in Miami, Florida.

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