DXP Enterprises (NASDAQ:DXPE – Get Free Report) and Japan Steel Works (OTCMKTS:JPSWY – Get Free Report) are both mid-cap industrials companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, profitability, analyst recommendations, institutional ownership, earnings, valuation and risk.
Institutional & Insider Ownership
74.8% of DXP Enterprises shares are held by institutional investors. 22.4% of DXP Enterprises shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Risk and Volatility
DXP Enterprises has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500. Comparatively, Japan Steel Works has a beta of 0.65, meaning that its share price is 35% less volatile than the S&P 500.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| DXP Enterprises | 0 | 0 | 3 | 0 | 3.00 |
| Japan Steel Works | 0 | 1 | 1 | 0 | 2.50 |
DXP Enterprises presently has a consensus target price of $95.00, indicating a potential downside of 20.17%. Given DXP Enterprises’ stronger consensus rating and higher probable upside, equities analysts plainly believe DXP Enterprises is more favorable than Japan Steel Works.
Profitability
This table compares DXP Enterprises and Japan Steel Works’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| DXP Enterprises | 4.52% | 20.94% | 6.77% |
| Japan Steel Works | 6.95% | 9.76% | 4.84% |
Valuation and Earnings
This table compares DXP Enterprises and Japan Steel Works”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| DXP Enterprises | $1.80 billion | 1.04 | $70.49 million | $5.24 | 22.71 |
| Japan Steel Works | $1.63 billion | 2.99 | $118.54 million | $0.85 | 38.53 |
Japan Steel Works has lower revenue, but higher earnings than DXP Enterprises. DXP Enterprises is trading at a lower price-to-earnings ratio than Japan Steel Works, indicating that it is currently the more affordable of the two stocks.
Summary
DXP Enterprises beats Japan Steel Works on 10 of the 14 factors compared between the two stocks.
About DXP Enterprises
DXP Enterprises, Inc., together with its subsidiaries, engages in distributing maintenance, repair, and operating (MRO) products, equipment, and services in the United States and Canada. It operates through three segments: Service Centers (SC), Supply Chain Services (SCS), and Innovative Pumping Solutions (IPS). The SC segment offers MRO products, equipment, and integrated services, including technical expertise and logistics services. It offers a range of MRO products in the rotating equipment, bearing, power transmission, hose, fluid power, metal working, fastener, industrial supply, safety products, and safety services categories. This segment serves customers in the oil and gas, food and beverage, petrochemical, transportation, other general industrial, mining, construction, chemical, municipal, agriculture, and pulp and paper industries. The SCS segment manages procurement and inventory vinventory optimization and management, storeroom management, transaction consolidation and control, vendor oversight and procurement cost optimization, productivity improvement, and customized reporting services. Its programs include SmartAgreement, a procurement solution for various MRO categories; SmartBuy, an on-site or centralized MRO procurement solution; SmartSource, an on-site procurement and storeroom management solution; SmartStore, an e-Catalog solution; SmartVend, an industrial dispensing solution; and SmartServ, an integrated service pump solution. The IPS segment fabricates and assembles custom-made pump packages; remanufactures pumps; and manufactures branded private label pumps. DXP Enterprises, Inc. was founded in 1908 and is based in Houston, Texas.
About Japan Steel Works
The Japan Steel Works, Ltd. engages in the provision of industrial machinery products, and material and engineering business in Japan and internationally. It operates through Industrial Machinery Products Business, and Material and Engineering Business segments. The Industrial Machinery Products Business segment offers plastic production and processing machinery, such as pelletizers, film and sheet manufacturing equipment, and twin-screw extruders; molding machines including plastic injection molding, magnesium injection molding, and blow molding machines; and other machinery consists of excimer laser annealing systems, defense equipment, railway products, hot press devices, vacuum laminators, and deposit systems, as well as after-sales services for plastics, mobility, high-performance batteries, electronic devices, and defense applications. The Material and Engineering Business segment provides steel casting and forgings, such as reactor and steam generator parts, rotor shafts, turbine casings, die steel, steel rolls for steel manufacturing, and clad steel plates; and engineering and other services, including design and analysis, welded structures, inspection and survey, and hydrogen pressure accumulators and related products for use in power generation equipment, renewable energy, and infrastructure applications. The company offers photonics, composite materials, and metallic materials for use in semiconductors and electronic devices, cameras and sensing devices, aircraft and mobility components, and electronic parts. The Japan Steel Works, Ltd. was founded in 1907 and is headquartered in Shinagawa, Japan.
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