Financial Comparison: Pool (NASDAQ:POOL) versus TX Rail Products (OTCMKTS:TXHG)

Pool (NASDAQ:POOL) and TX Rail Products (OTCMKTS:TXHG) are both industrials companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.

Valuation and Earnings

This table compares Pool and TX Rail Products’ gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pool	$5.54 billion	2.58	$523.23 million	$12.78	29.04
TX Rail Products	N/A	N/A	N/A	$0.01	3.50

Pool has higher revenue and earnings than TX Rail Products. TX Rail Products is trading at a lower price-to-earnings ratio than Pool, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Pool and TX Rail Products, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pool	0	4	1	0	2.20
TX Rail Products	0	0	0	0	N/A

Pool currently has a consensus price target of $397.80, suggesting a potential upside of 7.17%. Given Pool’s higher probable upside, equities analysts plainly believe Pool is more favorable than TX Rail Products.

Profitability

This table compares Pool and TX Rail Products’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pool	9.17%	35.49%	13.74%
TX Rail Products	N/A	N/A	N/A

Insider and Institutional Ownership

99.0% of Pool shares are owned by institutional investors. 3.0% of Pool shares are owned by company insiders. Comparatively, 38.5% of TX Rail Products shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Summary

Pool beats TX Rail Products on 9 of the 10 factors compared between the two stocks.

About Pool

Pool Corporation distributes swimming pool supplies, equipment, and related leisure products in the United States and internationally. The company offers maintenance products, including chemicals, supplies, and pool accessories; repair and replacement parts for pool equipment, such as cleaners, filters, heaters, pumps, and lights; and building materials, such as concrete, plumbing and electrical components, functional and decorative pool surfaces, decking materials, tiles, hardscapes, and natural stones for pool installations and remodeling. It also provides pool equipment and components for new pool construction and the remodeling of existing pools; irrigation and related products, such as irrigation system components, and professional turf care equipment and supplies; commercial products, including heaters, safety equipment, commercial decking equipment, and commercial pumps and filters. In addition, the company offers fiberglass pools, and hot tubs and packaged pool kits comprising walls, liners, braces, and coping for in-ground and above-ground pools; and other pool construction and recreational products comprising discretionary recreational and related outdoor living products, such as grills and components for outdoor kitchens. It serves swimming pool remodelers and builders; specialty retailers that sell swimming pool supplies; swimming pool repair and service businesses; irrigation construction and landscape maintenance contractors; and commercial pool operators and pool contractors. Pool Corporation was incorporated in 1993 and is headquartered in Covington, Louisiana.

About TX Rail Products

TX Rail Products, Inc supplies, distributes, and sells drill bits, related tools, and other mining supplies and rail products to coal mining companies in the United States. It distributes and sells drill steel mining products, such as drill bit products and accessories used for hard and soft rock mining operations; tungsten carbide drill bits and augurs; and related accessories and tools. The company also offers tee rails for use in railroad tracks for the transportation of coal by coal mine operators; steel ties for use in securing rail; switches; and related accessories and tools. It sells its products through independent sales agents to resellers; and directly to coal mine operators. The company was formerly known as TX Holdings, Inc. and changed its name to TX Rail Products, Inc in January 2024. TX Rail Products, Inc was incorporated in 2000 and is headquartered in Ashland, Kentucky.