DXP Enterprises (NASDAQ:DXPE) versus Toromont Industries (OTCMKTS:TMTNF) Financial Review

DXP Enterprises (NASDAQ:DXPEGet Free Report) and Toromont Industries (OTCMKTS:TMTNFGet Free Report) are both industrial products companies, but which is the better business? We will contrast the two businesses based on the strength of their profitability, earnings, risk, dividends, analyst recommendations, institutional ownership and valuation.

Profitability

This table compares DXP Enterprises and Toromont Industries’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
DXP Enterprises 4.10% 19.30% 6.66%
Toromont Industries N/A N/A N/A

Earnings and Valuation

This table compares DXP Enterprises and Toromont Industries’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
DXP Enterprises $1.68 billion 0.47 $68.81 million $3.88 12.52
Toromont Industries N/A N/A N/A $1.57 60.70

DXP Enterprises has higher revenue and earnings than Toromont Industries. DXP Enterprises is trading at a lower price-to-earnings ratio than Toromont Industries, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

69.1% of DXP Enterprises shares are held by institutional investors. Comparatively, 53.3% of Toromont Industries shares are held by institutional investors. 22.1% of DXP Enterprises shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for DXP Enterprises and Toromont Industries, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
DXP Enterprises 0 0 1 0 3.00
Toromont Industries 0 0 0 0 N/A

DXP Enterprises presently has a consensus target price of $55.00, suggesting a potential upside of 13.24%. Toromont Industries has a consensus target price of $112.00, suggesting a potential upside of 17.33%. Given Toromont Industries’ higher possible upside, analysts plainly believe Toromont Industries is more favorable than DXP Enterprises.

Summary

DXP Enterprises beats Toromont Industries on 8 of the 10 factors compared between the two stocks.

About DXP Enterprises

(Get Free Report)

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 Toromont Industries

(Get Free Report)

Toromont Industries Ltd. provides specialized capital equipment in Canada, the United States, and internationally. It operates in two segments, Equipment Group and CIMCO. The Equipment Group segment engages in the sale, rental, and service of mobile equipment for Caterpillar and other manufacturers; sale, rental, and service of engines used in various applications, including industrial, commercial, marine, on-highway trucks, and power generation; and sale of complementary and related products, parts, and services. This segment serves road building, mining, aggregates, infrastructure, residential and commercial construction, power generation, agriculture, forestry, and waste management markets. The CIMCO segment is involved in the design, engineering, fabrication, installation, and after-sale support of refrigeration systems in industrial and recreational markets. This segment primarily serves beverage and food processing, cold storage, food distribution, mining, and recreational ice rink sectors. Toromont Industries Ltd. was founded in 1961 and is headquartered in Concord, Canada.

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