Contrasting Neo Performance Materials (OTCMKTS:NOPMF) & Axalta Coating Systems (NYSE:AXTA)

by · The Markets Daily

Axalta Coating Systems (NYSE:AXTAGet Free Report) and Neo Performance Materials (OTCMKTS:NOPMFGet Free Report) are both materials companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, earnings, risk, dividends, profitability, institutional ownership and valuation.

Valuation & Earnings

This table compares Axalta Coating Systems and Neo Performance Materials”s top-line revenue, earnings per share (EPS) and valuation.

Gross RevenuePrice/Sales RatioNet IncomeEarnings Per SharePrice/Earnings Ratio
Axalta Coating Systems$5.12 billion1.43$378.00 million$1.6221.13
Neo Performance Materials$478.79 million2.13-$9.98 million($0.01)-2,222.00

Axalta Coating Systems has higher revenue and earnings than Neo Performance Materials. Neo Performance Materials 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.

Profitability

This table compares Axalta Coating Systems and Neo Performance Materials’ net margins, return on equity and return on assets.

Net MarginsReturn on EquityReturn on Assets
Axalta Coating Systems6.78%22.35%7.12%
Neo Performance Materials0.26%12.14%6.85%

Institutional & Insider Ownership

98.3% of Axalta Coating Systems shares are held by institutional investors. 0.5% of Axalta Coating Systems shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent ratings and target prices for Axalta Coating Systems and Neo Performance Materials, as reported by MarketBeat.

Sell RatingsHold RatingsBuy RatingsStrong Buy RatingsRating Score
Axalta Coating Systems09502.36
Neo Performance Materials01302.75

Axalta Coating Systems currently has a consensus target price of $36.85, indicating a potential upside of 7.62%. Given Axalta Coating Systems’ higher possible upside, research analysts clearly believe Axalta Coating Systems is more favorable than Neo Performance Materials.

Summary

Axalta Coating Systems beats Neo Performance Materials on 11 of the 13 factors compared between the two stocks.

About Axalta Coating Systems

(Get Free Report)

Axalta Coating Systems Ltd., through its subsidiaries, manufactures, markets, and distributes high-performance coatings systems in North America, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. The company operates through two segments, Performance Coatings and Mobility Coatings. It also offers water and solvent-borne products and systems to repair damaged vehicles for independent body shops, multi-shop operators, and original equipment manufacturer (OEM) dealership body shops. In addition, the company provides functional and decorative liquid, and powder coatings used in various industrial applications, including building materials, cabinet, wood and luxury vinyl flooring and furniture market under the Voltatex, AquaEC, Durapon, Hydropon, UNRIVALED, Ceranamel, Industrial, Corlar Industrial, Tufcote, Imron Industrial, Alesta, Teodur, Nap-Gard, Abcite, and Plascoat brands for powder coatings. Further, it develops and supplies electrocoat, primer, the basecoat, and clearcoat products for OEMs of light and commercial vehicles; and coatings systems for various commercial applications, including HDT, MDT, bus, and rail under the Imron, Imron Elite, Centari, Rival, Corlar epoxy undercoats, and AquaEC brands. The company offers products under the Audurra, Abcite, Alesta, AquaEC, Centari, Ceranamel, Challenger, Chemophan, ColorNet, Cromax, Cromax Mosaic, Durapon 70, Duxone, Harmonized Coating Technologies, Imron ExcelPro, Lutophen, Nason, Spies Hecker, Standox, Stollaquid, Syntopal, Syrox, Raptor, U-POL, and Vermeera brand names. The company was formerly known as Axalta Coating Systems Bermuda Co., Ltd. and changed its name to Axalta Coating Systems Ltd. in August 2014. Axalta Coating Systems Ltd. was founded in 1866 and is headquartered in Glen Mills, Pennsylvania.

About Neo Performance Materials

(Get Free Report)

Neo Performance Materials Inc. engages in the manufacture and sale of rare earth, magnetic powders, magnets, and rare metal-based functional materials in Canada and internationally. The company operates in three segments: Magnequench, Chemicals and Oxides, and Rare Metals. The Magnequench segment produces magnetic powders that are used in bonded and hot deformed fully dense neodymium-iron-boron magnets; and bonded magnets. Its powders are used in the production of bonded permanent magnets that are components in automotive motors, pumps, micro motors, traction motors, sensors, and other applications. The Chemicals and Oxides segments manufactures and distributes a range of industrial materials for use in auto catalysts, consumer electronics, petroleum refining, hybrid and electric vehicles, and municipal and industrial wastewater treatment applications. The Rare Metals segment sources, produces, reclaims, refines, and markets high-temperature metals that include tantalum, niobium, hafnium, and rhenium; and electronic metals, such as gallium and indium for jet engines, medical imaging, wireless technologies, and LED lightings, as well as flat panel displays, solar, steel additives, batteries, and electronic applications. The company was founded in 1994 and is headquartered in Toronto, Canada.