Analyzing Willis Lease Finance (NASDAQ:WLFC) & DXP Enterprises (NASDAQ:DXPE)

DXP Enterprises (NASDAQ:DXPE) and Willis Lease Finance (NASDAQ:WLFC) are both industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, valuation, dividends, analyst recommendations, institutional ownership and profitability.

Risk and Volatility

DXP Enterprises has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500. Comparatively, Willis Lease Finance has a beta of 0.74, suggesting that its stock price is 26% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for DXP Enterprises and Willis Lease Finance, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DXP Enterprises	0	2	3	0	2.60
Willis Lease Finance	0	1	1	0	2.50

DXP Enterprises currently has a consensus price target of $187.00, suggesting a potential downside of 2.79%. Given DXP Enterprises’ stronger consensus rating and higher probable upside, equities research analysts clearly believe DXP Enterprises is more favorable than Willis Lease Finance.

Profitability

This table compares DXP Enterprises and Willis Lease Finance’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DXP Enterprises	4.35%	18.89%	5.83%
Willis Lease Finance	11.80%	14.11%	2.64%

Insider and Institutional Ownership

74.8% of DXP Enterprises shares are owned by institutional investors. Comparatively, 93.7% of Willis Lease Finance shares are owned by institutional investors. 22.0% of DXP Enterprises shares are owned by insiders. Comparatively, 53.3% of Willis Lease Finance shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares DXP Enterprises and Willis Lease Finance”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DXP Enterprises	$2.06 billion	1.45	$88.68 million	$5.68	33.87
Willis Lease Finance	$765.37 million	1.69	$113.76 million	$3.99	15.30

Willis Lease Finance has lower revenue, but higher earnings than DXP Enterprises. Willis Lease Finance is trading at a lower price-to-earnings ratio than DXP Enterprises, indicating that it is currently the more affordable of the two stocks.

Summary

DXP Enterprises beats Willis Lease Finance on 9 of the 14 factors compared between the two stocks.

About DXP Enterprises

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.

About Willis Lease Finance

Willis Lease Finance Corporation operates as a lessor and servicer of commercial aircraft and aircraft engines worldwide. The company operates through two segments, Leasing and Related Operations, and Spare Parts Sales. The Leasing and Related Operations segment engages in acquiring and leasing commercial aircraft, aircraft engines, and other aircraft equipment, as well as the purchase and resale of commercial aircraft engines and other aircraft equipment, and other related businesses. The Spare Parts Sales segment purchases and resells after-market engine parts, whole engines, engine modules, and portable aircraft components. The company also focuses on engine management and consulting business. It serves commercial aircraft operators, as well as maintenance, repair, and overhaul organizations. As of December 31, 2023, it had a total lease portfolio of 337 engines, 12 aircraft, one marine vessel, and other leased parts and equipment, and with 74 lessees in 42 countries; and managed a total lease portfolio of 198 engines, aircraft, and related equipment for other parties. The company was founded in 1985 and is headquartered in Coconut Creek, Florida.