Head-To-Head Review: NL Industries (NL) versus Its Competitors

NL Industries (NYSE: NL) is one of 47 publicly-traded companies in the “Electrical Components & Equipment” industry, but how does it weigh in compared to its competitors? We will compare NL Industries to similar businesses based on the strength of its risk, valuation, dividends, profitability, analyst recommendations, institutional ownership and earnings.

Analyst Recommendations

This is a breakdown of recent recommendations for NL Industries and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NL Industries 1 0 0 0 1.00
NL Industries Competitors 190 926 1217 7 2.44

NL Industries currently has a consensus price target of $6.00, suggesting a potential downside of 57.45%. As a group, “Electrical Components & Equipment” companies have a potential upside of 1.54%. Given NL Industries’ competitors stronger consensus rating and higher probable upside, analysts plainly believe NL Industries has less favorable growth aspects than its competitors.

Valuation & Earnings

This table compares NL Industries and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
NL Industries $114.69 million $8.15 million 10.29
NL Industries Competitors $1.86 billion $293.26 million -36.07

NL Industries’ competitors have higher revenue and earnings than NL Industries. NL Industries is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Risk and Volatility

NL Industries has a beta of 2.75, meaning that its share price is 175% more volatile than the S&P 500. Comparatively, NL Industries’ competitors have a beta of 1.30, meaning that their average share price is 30% more volatile than the S&P 500.

Profitability

This table compares NL Industries and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
NL Industries 57.98% 32.04% 16.44%
NL Industries Competitors -3.49% 5.80% 2.19%

Insider & Institutional Ownership

9.5% of NL Industries shares are held by institutional investors. Comparatively, 66.7% of shares of all “Electrical Components & Equipment” companies are held by institutional investors. 0.1% of NL Industries shares are held by insiders. Comparatively, 6.4% of shares of all “Electrical Components & Equipment” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Summary

NL Industries competitors beat NL Industries on 8 of the 13 factors compared.

About NL Industries

NL Industries, Inc. is a holding company. The Company operates in the component products industry through its subsidiary, CompX International Inc. (CompX). The Company operates in the chemicals industry through its non-controlling interest in Kronos Worldwide, Inc. (Kronos). The Company, through Compx, manufactures engineered components that are sold to a range of industries, including recreational transportation (including boats), postal, office and institutional furniture, cabinetry, tool storage, healthcare, gas stations and vending equipment. Kronos is a global producer and marketer of value-added titanium dioxide pigments (TiO2), a base industrial product used in imparting whiteness, brightness and opacity to a range of customer applications and end use markets, including coatings, plastics, paper, inks, food, cosmetics, and other industrial and consumer products. Kronos has production facilities in Europe and North America.

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