Analyzing CompX International (NYSE:CIX) and Q.E.P. (OTCMKTS:QEPC)

CompX International (NYSE:CIX – Get Rating) and Q.E.P. (OTCMKTS:QEPC – Get Rating) are both small-cap industrial products companies, but which is the superior investment? We will contrast the two companies based on the strength of their analyst recommendations, profitability, risk, institutional ownership, dividends, valuation and earnings.

Risk & Volatility

CompX International has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500. Comparatively, Q.E.P. has a beta of -0.29, indicating that its share price is 129% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for CompX International and Q.E.P., as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CompX International	0	0	0	0	N/A
Q.E.P.	0	0	0	0	N/A

Insider & Institutional Ownership

8.3% of CompX International shares are owned by institutional investors. Comparatively, 4.6% of Q.E.P. shares are owned by institutional investors. 0.4% of CompX International shares are owned by insiders. Comparatively, 51.1% of Q.E.P. shares are owned 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.

Valuation & Earnings

This table compares CompX International and Q.E.P.’s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CompX International	$166.60 million	1.38	$20.87 million	$1.78	10.49
Q.E.P.	$445.53 million	0.11	$9.65 million	$0.78	16.67

CompX International has higher earnings, but lower revenue than Q.E.P.. CompX International is trading at a lower price-to-earnings ratio than Q.E.P., indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares CompX International and Q.E.P.’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
CompX International	13.28%	13.48%	12.13%
Q.E.P.	0.59%	3.33%	1.22%

Summary

CompX International beats Q.E.P. on 8 of the 11 factors compared between the two stocks.

About CompX International

(Get Rating)

CompX International, Inc. engages in the manufacture of security products used in the recreational transportation, postal, office and institutional furniture, cabinetry, tool storage, healthcare, and a variety of other industries. It operates through the Security Products and Marine Components segments. The Security Products segment manufactures mechanical and electronic cabinet locks and other locking mechanisms used in a variety of applications including ignition systems, mailboxes, file cabinets, desk drawers, tool storage cabinets, vending and gaming machines, high security medical cabinetry, electronic circuit panels, storage compartments, and gas station security. The Marine Components segment manufactures and distributes stainless steel exhaust components, gauges, throttle controls, trim tabs, hardware, and accessories primarily for performance and ski and wakeboard boats. The company was founded in 1993 and is headquartered in Dallas, TX.

About Q.E.P.

(Get Rating)

Q.E.P. Co., Inc. engages in the provision of flooring and industrial solutions. The firm manufactures, markets, and distributes hard surface flooring and carpet tile, flooring installation tools, adhesives and flooring related products. It operates through the following geographical segments: North America, Europe, and Australia or New Zealand. The North America segment involves operations in the United States and and Canada. The Europe segment consists of operations in the United Kingdom, France, and Germany. The Australia or New Zealand segment markets and sells its products to home improvement retail centers and specialty distribution outlets. It offers its products through the QEP, ROBERTS, Capitol, HarrisWood, Fausfloor, Vitrex, Homelux, TileRite, PRCI, Nupla, HISCO, Plasplugs, Ludell, Porta-Nails, Tomecanic, Bénètiere, and Elastiment brands. The company was founded by Lewis Gould in 1979 and is headquartered in Boca Raton, FL.