Analyzing Miller Industries (NYSE:MLR) & XPEL (NASDAQ:XPEL)

Miller Industries (NYSE:MLR) and XPEL (NASDAQ:XPEL) are both small-cap auto/tires/trucks companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, earnings, valuation and risk.

Volatility & Risk

Miller Industries has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500. Comparatively, XPEL has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Miller Industries	2.08%	3.70%	2.58%
XPEL	10.82%	19.14%	14.29%

Institutional & Insider Ownership

79.2% of Miller Industries shares are held by institutional investors. Comparatively, 75.1% of XPEL shares are held by institutional investors. 4.5% of Miller Industries shares are held by company insiders. Comparatively, 9.5% of XPEL shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of current ratings for Miller Industries and XPEL, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Miller Industries	0	2	1	0	2.33
XPEL	0	3	0	0	2.00

Miller Industries presently has a consensus target price of $50.00, suggesting a potential upside of 4.85%. Given Miller Industries’ stronger consensus rating and higher possible upside, equities analysts clearly believe Miller Industries is more favorable than XPEL.

Earnings and Valuation

This table compares Miller Industries and XPEL”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Miller Industries	$790.27 million	0.69	$23.01 million	$1.34	35.59
XPEL	$476.20 million	2.58	$51.23 million	$1.91	23.33

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

Summary

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

About Miller Industries

Miller Industries, Inc., together with its subsidiaries, manufactures and sells towing and recovery equipment. The company offers wreckers that are used to recover and tow disabled vehicles and other equipment; and car carriers, which are specialized flat-bed vehicles with hydraulic tilt mechanisms, which are used to transport new or disabled vehicles and other equipment. It also provides transport trailers for moving various vehicles for auto auctions, car dealerships, leasing companies, and other similar operations. The company markets its products under the Century, Vulcan, Challenger, Holmes, Champion, Chevron, Eagle, Titan, Jige, and Boniface brands. Miller Industries, Inc. sells its products through independent distributors in North America, and Canada, Mexico; and through prime contractors to governmental entities. Miller Industries, Inc. was incorporated in 1990 and is headquartered in Ooltewah, Tennessee.

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.