Analyzing Niu Technologies (NASDAQ:NIU) and XPEL (NASDAQ:XPEL)

Niu Technologies (NASDAQ:NIU) and XPEL (NASDAQ:XPEL) are both small-cap auto/tires/trucks companies, but which is the superior business? We will compare the two companies based on the strength of their valuation, dividends, analyst recommendations, risk, profitability, institutional ownership and earnings.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Niu Technologies and XPEL, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Niu Technologies	0	0	0	0	0.00
XPEL	1	0	0	0	1.00

Volatility and Risk

Niu Technologies has a beta of -0.35, suggesting that its share price is 135% less volatile than the S&P 500. Comparatively, XPEL has a beta of 1.83, suggesting that its share price is 83% more volatile than the S&P 500.

Profitability

This table compares Niu Technologies and XPEL’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Niu Technologies	-3.85%	-15.68%	-5.28%
XPEL	10.84%	21.17%	16.90%

Insider and Institutional Ownership

75.1% of Niu Technologies shares are owned by institutional investors. Comparatively, 75.1% of XPEL shares are owned by institutional investors. 10.2% of Niu Technologies shares are owned by insiders. Comparatively, 9.5% of XPEL shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Earnings and Valuation

This table compares Niu Technologies and XPEL”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Niu Technologies	$450.49 million	0.78	-$26.47 million	($0.26)	-17.42
XPEL	$420.40 million	2.52	$45.49 million	$1.76	21.73

XPEL has lower revenue, but higher earnings than Niu Technologies. Niu Technologies 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 Niu Technologies on 10 of the 12 factors compared between the two stocks.

About Niu Technologies

Niu Technologies designs, manufactures, and sells electric scooters in the People’s Republic of China, Europe, and internationally. The company offers RQi, NQi, MQi, SQi, UQi, F, and Gova series smart electric scooters, motorcycles, mopeds, and bicycles; KQi series kick-scooters; BQi series e-bikes; and Niu Aero Sports Bicycles. It also provides accessories and spare parts under the NIU brand name comprising scooter accessories, such as raincoats, gloves, knee pads, storage baskets and tail boxes, smart phone holders, backrests, and locks; lifestyle accessories, which includes T-shirts, coats, jeans, hats, bags, jewelry, notebooks, badges, key chain, and mugs; and performance upgrade components consisting of upgraded wheels, shock absorbers, brake calipers, and carbon fiber body panels. In addition, the company operates NIU app, which provides online repair request, service station locator, theft reporting, smart check, smart services, scooter status, historical riding data, and key diagnostics, as well as NIU cover, which provides insurance services. It sells and services its products through city partners and franchised stores, distributors, third-party e-commerce platforms, and its online store. The company was incorporated in 2014 and is headquartered in Beijing, the People’s Republic of China.

About XPEL

XPEL, Inc. sells, distributes, and installs protective films and coatings worldwide. The company offers automotive surface and paint protection film, headlight protection, and automotive and architectural window films, as well as proprietary DAP software. It also provides pre-cut film products, merchandise and apparel, ceramic coatings, and tools and accessories. In addition, the company offers paint protection kits, car wash products, after-care products, and installation tools through its website. The company sells and distributes its products through independent installers, new car dealerships, third-party distributors, automobile original equipment manufacturers, and company-owned installation centers, as well as through franchisees and online channels. The company serves in the United States, China, Canada, Continental Europe, the United Kingdom, Asia Pacific, Latin America, the Middle East/Africa, and internationally. XPEL, Inc. was founded in 1997 and is headquartered in San Antonio, Texas.