Fox Factory (NASDAQ:FOXF) and XPEL (NASDAQ:XPEL) Head to Head Comparison

XPEL (NASDAQ:XPEL) and Fox Factory (NASDAQ:FOXF) are both small-cap consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, dividends, profitability, valuation, institutional ownership, earnings and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
XPEL	11.17%	19.39%	13.66%
Fox Factory	-28.58%	8.43%	3.48%

Analyst Ratings

This is a summary of recent ratings and recommmendations for XPEL and Fox Factory, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
XPEL	1	1	1	1	2.50
Fox Factory	2	3	1	1	2.14

XPEL presently has a consensus price target of $65.00, indicating a potential upside of 71.73%. Fox Factory has a consensus price target of $19.60, indicating a potential upside of 12.32%. Given XPEL’s stronger consensus rating and higher probable upside, equities analysts plainly believe XPEL is more favorable than Fox Factory.

Volatility & Risk

XPEL has a beta of 1.2, suggesting that its share price is 20% more volatile than the S&P 500. Comparatively, Fox Factory has a beta of 1.39, suggesting that its share price is 39% more volatile than the S&P 500.

Institutional and Insider Ownership

75.1% of XPEL shares are owned by institutional investors. 9.4% of XPEL shares are owned by insiders. Comparatively, 0.9% of Fox Factory shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares XPEL and Fox Factory”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	2.19	$51.23 million	$2.09	18.11
Fox Factory	$1.47 billion	0.50	-$544.58 million	($9.73)	-1.79

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

Summary

XPEL beats Fox Factory on 11 of the 13 factors compared between the two stocks.

About XPEL

XPEL, Inc. develops and distributes protective films, coatings and related products for vehicles and buildings. Its automotive offerings include paint protection film, window tint and ceramic coatings designed to help protect vehicle surfaces and interiors. The company also serves the architectural market with films for glass and other building surfaces. XPEL supports product installation through a network of dealers and installers, along with training, installation tools and its Design Access Program software, which provides digital patterns for cutting protective films.

About Fox Factory

Fox Factory Holding Corp. designs, engineers and manufactures ride-dynamics and performance products for vehicles and outdoor recreation. Its offerings include suspension systems and components used in mountain bikes, motorcycles, off-road vehicles, trucks and other applications. The company sells products under brands including FOX, Marzocchi, Race Face and Easton. Its portfolio serves original equipment manufacturers as well as aftermarket customers, with products distributed in markets around the world.