Analyzing XPEL (NASDAQ:XPEL) and Continental (OTCMKTS:CTTAY)

Continental (OTCMKTS:CTTAY) and XPEL (NASDAQ:XPEL) are both auto/tires/trucks companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, earnings, valuation, dividends, profitability, risk and analyst recommendations.

Institutional and Insider Ownership

0.0% of Continental shares are owned by institutional investors. Comparatively, 75.1% of XPEL shares are owned by institutional investors. 9.5% of XPEL shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Continental	0.91%	1.14%	0.34%
XPEL	10.12%	19.20%	14.79%

Risk and Volatility

Continental has a beta of 1.29, indicating that its share price is 29% more volatile than the S&P 500. Comparatively, XPEL has a beta of 1.26, indicating that its share price is 26% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current recommendations for Continental and XPEL, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Continental	1	5	3	0	2.22
XPEL	0	2	0	0	2.00

Valuation & Earnings

This table compares Continental and XPEL”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Continental	$42.98 billion	0.40	$1.26 billion	$0.16	54.38
XPEL	$420.40 million	3.55	$45.49 million	$1.69	31.88

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

Summary

XPEL beats Continental on 7 of the 13 factors compared between the two stocks.

About Continental

Continental Aktiengesellschaft, a technology company, offers intelligent solutions for vehicles, machines, traffic, and transportation worldwide. It operates through four sectors: Automotive, Tires, ContiTech, and Contract Manufacturing. The company offers safety, brake, chassis, motion, and motion control systems; solutions for assisted and automated driving; display and operating technologies; and audio and camera solutions for the vehicle interior, as well as intelligent information and communication technology solutions. It also provides tires for cars, trucks, buses, two-wheel, and specialist vehicles, as well as digital tire monitoring and management systems; and engages in retail of tires. In addition, the company develops products and systems made from rubber, plastic, metal and textiles for the energy, agriculture, and construction, as well as interior design, automotive, transportation, and railway engineering sectors; and provides contract manufacturing services. The company was formerly known as Continental-Caoutchouc- und Gutta-Percha Compagnie. Continental Aktiengesellschaft was founded in 1871 and is headquartered in Hanover, Germany.

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.