Financial Review: Axalta Coating Systems (NYSE:AXTA) & Westaim (OTCMKTS:WEDXF)

Westaim (OTCMKTS:WEDXFGet Free Report) and Axalta Coating Systems (NYSE:AXTAGet Free Report) are both basic materials companies, but which is the better stock? We will compare the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, risk, profitability, dividends and earnings.

Earnings & Valuation

This table compares Westaim and Axalta Coating Systems”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Westaim $53.37 million 11.10 -$38.00 million ($1.69) -10.50
Axalta Coating Systems $5.12 billion 1.12 $378.00 million $1.74 15.43

Axalta Coating Systems has higher revenue and earnings than Westaim. Westaim is trading at a lower price-to-earnings ratio than Axalta Coating Systems, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

Westaim has a beta of 0.2, suggesting that its share price is 80% less volatile than the S&P 500. Comparatively, Axalta Coating Systems has a beta of 1.29, suggesting that its share price is 29% more volatile than the S&P 500.

Insider and Institutional Ownership

98.3% of Axalta Coating Systems shares are held by institutional investors. 4.2% of Westaim shares are held by company insiders. Comparatively, 0.3% of Axalta Coating Systems shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Westaim and Axalta Coating Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Westaim -77.37% -6.15% -5.25%
Axalta Coating Systems 7.39% 23.60% 7.07%

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Westaim and Axalta Coating Systems, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Westaim 0 0 0 0 0.00
Axalta Coating Systems 0 12 7 0 2.37

Axalta Coating Systems has a consensus target price of $36.13, suggesting a potential upside of 34.54%. Given Axalta Coating Systems’ stronger consensus rating and higher possible upside, analysts plainly believe Axalta Coating Systems is more favorable than Westaim.

Summary

Axalta Coating Systems beats Westaim on 12 of the 14 factors compared between the two stocks.

About Westaim

(Get Free Report)

The Westaim Corporation is a private equity firm specializing in direct and indirect investments through acquisitions, joint ventures, secondary investments both direct and indirect, fund of fund investments, and other arrangements. For direct investments, the firm invests in early venture, mid venture, late venture, middle market, later stage, mature, emerging growth, PIPEs, and buyout transactions. For fund of fund investments, it seeks to invest in private equity funds, venture capital funds, and hedge funds. The firm seeks to provide long term capital to businesses operating in the global financial services industry. It typically acquires controlling interests in businesses. The firm seeks to acquire debt, equity, or derivative securities of both public and private companies. It invests with the objective of providing its shareholders with capital appreciation and real wealth preservation. The firm seeks to provide its portfolio companies with advisory services including, but not limited to, advice on capital allocation, financing strategy, performance measurement and merger and acquisition support. It also seeks to partner with like-minded providers of third party capital to help supplement the firm's own capital, when completing acquisitions. The firm generally seeks to hold its investments for seven to 15 years. The Westaim Corporation was founded in 1996 and is based in Toronto, Canada.

About Axalta Coating Systems

(Get Free Report)

Axalta Coating Systems Ltd., through its subsidiaries, manufactures, markets, and distributes high-performance coatings systems in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. The company operates through two segments, Performance Coatings and Mobility Coatings. It also offers water and solvent-borne products and systems to repair damaged vehicles for independent body shops, multi-shop operators, and original equipment manufacturer (OEM) dealership body shops. In addition, the company provides functional and decorative liquid, and powder coatings used in various industrial applications, including building materials, cabinet, wood and luxury vinyl flooring and furniture market under the Voltatex, AquaEC, Durapon, Hydropon, UNRIVALED, Ceranamel, Industrial, Corlar Industrial, Tufcote, Imron Industrial, Alesta, Teodur, Nap-Gard, Abcite, and Plascoat brands for powder coatings. Further, it develops and supplies electrocoat, primer, the basecoat, and clearcoat products for OEMs of light and commercial vehicles; and coatings systems for various commercial applications, including HDT, MDT, bus, and rail under the Imron, Imron Elite, Centari, Rival, Corlar epoxy undercoats, and AquaEC brands. The company offers products under the Audurra, Abcite, Alesta, AquaEC, Centari, Ceranamel, Challenger, Chemophan, ColorNet, Cromax, Cromax Mosaic, Durapon 70, Duxone, Harmonized Coating Technologies, Imron ExcelPro, Lutophen, Nason, Spies Hecker, Standox, Stollaquid, Syntopal, Syrox, Raptor, U-POL, and Vermeera brand names. The company was formerly known as Axalta Coating Systems Bermuda Co., Ltd. and changed its name to Axalta Coating Systems Ltd. in August 2014. Axalta Coating Systems Ltd. was founded in 1866 and is headquartered in Glen Mills, Pennsylvania.

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