Comparing Valeo (OTCMKTS:VLEEY) and XPEL (NASDAQ:XPEL)

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

Insider and Institutional Ownership

75.1% of XPEL shares are held by institutional investors. Comparatively, 0.0% of Valeo shares are held by institutional investors. 9.5% of XPEL shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current ratings and target prices for XPEL and Valeo, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
XPEL	0	2	0	0	2.00
Valeo	0	6	1	1	2.38

Volatility and Risk

XPEL has a beta of 1.35, indicating that its stock price is 35% more volatile than the S&P 500. Comparatively, Valeo has a beta of 1.16, indicating that its stock price is 16% more volatile than the S&P 500.

Valuation and Earnings

This table compares XPEL and Valeo”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
XPEL	$420.40 million	3.41	$45.49 million	$1.69	30.64
Valeo	$23.26 billion	0.15	$175.30 million	N/A	N/A

Valeo has higher revenue and earnings than XPEL.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
XPEL	10.12%	19.20%	14.79%
Valeo	N/A	N/A	N/A

Summary

XPEL beats Valeo on 7 of the 12 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 Valeo

Valeo SE designs, produces, and sells products and systems for automakers in France, other European countries, Africa, North America, South America, and Asia. The company operates through four segments: Comfort & Driving Assistance Systems, Powertrain Systems, Thermal Systems, and Visibility Systems. It offers parking and driving assistance products, such as ultrasonic sensors, radars, and cameras to detect obstacles around vehicles; intuitive control products; and a range of connectivity solutions from short-range to long-range connectivity, as well as develops systems that enable the integration of applications, such as car sharing services and remote parking systems. The company also provides powertrain systems, including electric powertrain systems for electric cars; torque converters, dual dry and wet clutches, dual mass flywheels, and actuators that enable the automation of transmissions to reduce fuel consumption and enhance driving comfort; and clean engines for vehicles. In addition, it designs and manufactures systems, modules, and components to optimize thermal energy management of vehicles and passenger comfort in the cabin. Further, the company designs and produces lighting and wiper systems for drivers in various weather conditions. Additionally, it offers original equipment spares to auto manufacturers; and replacement parts and accessories to independent aftermarket for passenger cars and commercial vehicles, as well as products for heavy commercial vehicles. The company was incorporated in 1923 and is headquartered in Paris, France.