Analyzing Axalta Coating Systems (NYSE:AXTA) and 5E Advanced Materials (NASDAQ:FEAM)

Axalta Coating Systems (NYSE:AXTAGet Free Report) and 5E Advanced Materials (NASDAQ:FEAMGet Free Report) are both basic materials companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, earnings, institutional ownership, profitability, dividends, valuation and risk.

Risk and Volatility

Axalta Coating Systems has a beta of 1.24, indicating that its stock price is 24% more volatile than the S&P 500. Comparatively, 5E Advanced Materials has a beta of 1.84, indicating that its stock price is 84% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Axalta Coating Systems and 5E Advanced Materials, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Axalta Coating Systems 0 12 4 0 2.25
5E Advanced Materials 1 1 2 0 2.25

Axalta Coating Systems currently has a consensus target price of $34.15, suggesting a potential upside of 27.35%. 5E Advanced Materials has a consensus target price of $6.25, suggesting a potential upside of 223.83%. Given 5E Advanced Materials’ higher possible upside, analysts clearly believe 5E Advanced Materials is more favorable than Axalta Coating Systems.

Earnings & Valuation

This table compares Axalta Coating Systems and 5E Advanced Materials”s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Axalta Coating Systems $5.12 billion 1.12 $378.00 million $1.71 15.68
5E Advanced Materials N/A N/A -$31.56 million ($2.67) -0.72

Axalta Coating Systems has higher revenue and earnings than 5E Advanced Materials. 5E Advanced Materials is trading at a lower price-to-earnings ratio than Axalta Coating Systems, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Axalta Coating Systems and 5E Advanced Materials’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Axalta Coating Systems 7.22% 22.37% 6.92%
5E Advanced Materials N/A -70.04% -62.90%

Insider & Institutional Ownership

98.3% of Axalta Coating Systems shares are owned by institutional investors. 0.3% of Axalta Coating Systems shares are owned by company insiders. Comparatively, 0.2% of 5E Advanced Materials shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Axalta Coating Systems beats 5E Advanced Materials on 10 of the 12 factors compared between the two stocks.

About Axalta Coating Systems

(Get Free Report)

Axalta Coating Systems Ltd., through its subsidiaries, manufactures, markets, and distributes high-performance coatings systems in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. The company operates through two segments, Performance Coatings and Mobility Coatings. It also offers water and solvent-borne products and systems to repair damaged vehicles for independent body shops, multi-shop operators, and original equipment manufacturer (OEM) dealership body shops. In addition, the company provides functional and decorative liquid, and powder coatings used in various industrial applications, including building materials, cabinet, wood and luxury vinyl flooring and furniture market under the Voltatex, AquaEC, Durapon, Hydropon, UNRIVALED, Ceranamel, Industrial, Corlar Industrial, Tufcote, Imron Industrial, Alesta, Teodur, Nap-Gard, Abcite, and Plascoat brands for powder coatings. Further, it develops and supplies electrocoat, primer, the basecoat, and clearcoat products for OEMs of light and commercial vehicles; and coatings systems for various commercial applications, including HDT, MDT, bus, and rail under the Imron, Imron Elite, Centari, Rival, Corlar epoxy undercoats, and AquaEC brands. The company offers products under the Audurra, Abcite, Alesta, AquaEC, Centari, Ceranamel, Challenger, Chemophan, ColorNet, Cromax, Cromax Mosaic, Durapon 70, Duxone, Harmonized Coating Technologies, Imron ExcelPro, Lutophen, Nason, Spies Hecker, Standox, Stollaquid, Syntopal, Syrox, Raptor, U-POL, and Vermeera brand names. The company was formerly known as Axalta Coating Systems Bermuda Co., Ltd. and changed its name to Axalta Coating Systems Ltd. in August 2014. Axalta Coating Systems Ltd. was founded in 1866 and is headquartered in Glen Mills, Pennsylvania.

About 5E Advanced Materials

(Get Free Report)

5E Advanced Materials, Inc. engages in the exploration and development of mineral properties in Australia and the United States. The company primarily explores for borates and lithium deposits. It holds 100% interest in the Fort Cady project located in the Mojave Desert region in eastern San Bernardino County, California. The company was formerly known as American Pacific Borates Limited. The company was incorporated in 2016 and is based in Hesperia, California.

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