XPEL (NASDAQ:XPEL) & Standard Motor Products (NYSE:SMP) Head-To-Head Comparison

XPEL (NASDAQ:XPEL) and Standard Motor Products (NYSE:SMP) are both small-cap consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, valuation, institutional ownership, profitability, earnings and dividends.

Institutional & Insider Ownership

75.1% of XPEL shares are owned by institutional investors. Comparatively, 81.3% of Standard Motor Products shares are owned by institutional investors. 9.4% of XPEL shares are owned by company insiders. Comparatively, 5.5% of Standard Motor Products shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares XPEL and Standard Motor Products’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
XPEL	10.77%	18.98%	13.56%
Standard Motor Products	2.78%	13.28%	4.62%

Valuation & Earnings

This table compares XPEL and Standard Motor Products”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
XPEL	$476.20 million	2.57	$51.23 million	$1.97	22.55
Standard Motor Products	$1.79 billion	0.46	$41.33 million	$2.24	16.35

XPEL has higher earnings, but lower revenue than Standard Motor Products. Standard Motor Products is trading at a lower price-to-earnings ratio than XPEL, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for XPEL and Standard Motor Products, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
XPEL	0	2	1	1	2.75
Standard Motor Products	0	1	2	0	2.67

XPEL currently has a consensus target price of $65.00, indicating a potential upside of 46.30%. Standard Motor Products has a consensus target price of $49.00, indicating a potential upside of 33.81%. Given XPEL’s stronger consensus rating and higher probable upside, equities research analysts plainly believe XPEL is more favorable than Standard Motor Products.

Volatility & Risk

XPEL has a beta of 1.18, suggesting that its stock price is 18% more volatile than the S&P 500. Comparatively, Standard Motor Products has a beta of 0.85, suggesting that its stock price is 15% less volatile than the S&P 500.

Summary

XPEL beats Standard Motor Products on 11 of the 15 factors compared between the two stocks.

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.

About Standard Motor Products

Standard Motor Products, Inc. manufactures and distributes replacement automotive parts in the United States and internationally. The company operates through three segments: Vehicle Control, Temperature Control, and Engineered Solutions segments. The company provides components for the ignition, emissions, and fuel delivery systems, such as air injection and induction components, air management valves, regulators and solenoids, exhaust gas recirculation components, fuel injectors and related components, fuel valves, ignition coils, connectors and sockets, modules, pumps, relays and fuses, starting and charging system parts, and vapor and purge components. It also offers electrical switches and actuators; chassis and drivetrain sensors, such as anti-lock brake and vehicle speed sensors; fluid level sensors; pressure sensors comprising tire pressure monitoring; temperature sensors; sensors for advanced driver assistance systems; battery cables, pigtails, and sockets, as well as various electrical wire, terminals, connectors, and tools for servicing a vehicle’s electrical system; and spark plug, coil on plug boots, and ignition system accessories. In addition, the company offers AC system components that include compressors, air conditioning repair kits, connecting lines, heat exchangers, and expansion devices; parts that provide engine, transmission, electric drive motor, and battery temperature management; thermal management products, sensors, switches, power distribution, electrification and electronics, injections and fuel delivery, ignition and emissions, and clamping devices for commercial and light vehicles, construction, agriculture, power sports, marine, hydraulics, and lawn and garden sectors. It serves retailers and distributors, original equipment manufacturers and their suppliers, system integrators, and original equipment service part manufacturers. The company was founded in 1919 and is headquartered in Long Island City, New York.