DXP Enterprises (NASDAQ:DXPE) & ZJK Industrial (NASDAQ:ZJK) Critical Comparison

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

Analyst Recommendations

This is a summary of current ratings for DXP Enterprises and ZJK Industrial, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DXP Enterprises	0	0	3	0	3.00
ZJK Industrial	1	0	0	0	1.00

DXP Enterprises currently has a consensus target price of $95.00, suggesting a potential downside of 35.57%. Given DXP Enterprises’ stronger consensus rating and higher possible upside, equities analysts plainly believe DXP Enterprises is more favorable than ZJK Industrial.

Profitability

This table compares DXP Enterprises and ZJK Industrial’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DXP Enterprises	4.45%	19.62%	6.40%
ZJK Industrial	N/A	N/A	N/A

Institutional & Insider Ownership

74.8% of DXP Enterprises shares are held by institutional investors. 22.7% of DXP Enterprises shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Risk & Volatility

DXP Enterprises has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.Comparatively, ZJK Industrial has a beta of 1.82, suggesting that its stock price is 82% more volatile than the S&P 500.

Valuation & Earnings

This table compares DXP Enterprises and ZJK Industrial”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DXP Enterprises	$1.80 billion	1.28	$70.49 million	$5.28	27.92
ZJK Industrial	$37.81 million	2.92	$3.68 million	N/A	N/A

DXP Enterprises has higher revenue and earnings than ZJK Industrial.

Summary

DXP Enterprises beats ZJK Industrial on 10 of the 12 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 ZJK Industrial

ZJK Industrial Co. Ltd. is a high-tech enterprise specialized in manufacturing and sale of precision fasteners, structural parts and other precision metal parts products applied in a variety of industries, including intelligent electronic equipment, new energy vehicles, aerospace, energy storage systems and liquid cooling systems used in artificial intelligence supercomputers. ZJK Industrial Co. Ltd. is based in Shenzhen, China.