The Valspar Corp (VAL) & Axalta Coating Systems (AXTA) Financial Comparison

The Valspar Corp (NYSE: VAL) and Axalta Coating Systems (NYSE:AXTA) are both mid-cap companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, valuation, institutional ownership, analyst recommendations, earnings, risk and dividends.

Profitability

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

Net Margins Return on Equity Return on Assets
The Valspar Corp 6.89% 27.08% 6.98%
Axalta Coating Systems 1.46% 19.91% 4.30%

Dividends

The Valspar Corp pays an annual dividend of $1.48 per share and has a dividend yield of 1.3%. Axalta Coating Systems does not pay a dividend. The Valspar Corp pays out 35.7% of its earnings in the form of a dividend. The Valspar Corp has raised its dividend for 35 consecutive years.

Institutional and Insider Ownership

69.6% of The Valspar Corp shares are held by institutional investors. Comparatively, 96.9% of Axalta Coating Systems shares are held by institutional investors. 3.1% of The Valspar Corp shares are held by insiders. Comparatively, 2.3% of Axalta Coating Systems shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Valuation & Earnings

This table compares The Valspar Corp and Axalta Coating Systems’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio NetIncome Earnings Per Share Price/Earnings Ratio
The Valspar Corp N/A N/A N/A $4.14 27.29
Axalta Coating Systems $4.07 billion 2.01 $41.80 million $0.29 115.66

Axalta Coating Systems has higher revenue and earnings than The Valspar Corp. The Valspar Corp 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.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for The Valspar Corp and Axalta Coating Systems, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
The Valspar Corp 0 1 0 0 2.00
Axalta Coating Systems 1 6 9 0 2.50

The Valspar Corp currently has a consensus price target of $111.00, indicating a potential downside of 1.76%. Axalta Coating Systems has a consensus price target of $33.64, indicating a potential upside of 0.31%. Given Axalta Coating Systems’ stronger consensus rating and higher probable upside, analysts clearly believe Axalta Coating Systems is more favorable than The Valspar Corp.

Summary

The Valspar Corp beats Axalta Coating Systems on 7 of the 13 factors compared between the two stocks.

The Valspar Corp Company Profile

The Valspar Corporation is engaged in developing, manufacturing and distributing a range of coatings, paints and related products. The Company operates through two segments: Coatings and Paints. The Coatings segment includes its industrial product lines and packaging product line. The Company offers decorative and protective coatings for metal, wood and plastic primarily for sale to original equipment manufacturing (OEM) customers in Africa, Asia, Australia, Europe, North America and South America. The Paints segment includes consumer paints and automotive paint refinishes product lines. The Company offers a range of paints, primers, topcoats and aerosol spray paints through retailers, distribution networks and the Company-owned stores. The Company offers a portfolio of interior and exterior decorative paints, stains, primers, varnishes and specialty decorative products, such as enamels, aerosols and faux finishes, used in both the do-it-yourself and professional markets.

Axalta Coating Systems Company Profile

Axalta Coating Systems Ltd. is a holding company. The Company is a manufacturer, marketer and distributor of coatings systems primarily serving the transportation industry. The Company’s segments include Performance Coatings and Transportation Coatings. Through its Performance Coatings segment, the Company provides liquid and powder coatings solutions to a fragmented and local customer base. Through its Transportation Coatings segment, the Company provides coating technologies to original equipment manufacturers (OEMs) of light and commercial vehicles. The Performance Coatings segment serves various end markets, including refinish and industrial. The Company develops, markets and supplies a portfolio of coatings systems and color matching technologies. The Company also develops and supplies an array of coatings systems for a range of commercial applications, including heavy-duty truck (HDT), bus, rail and agricultural construction equipment (ACE).

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