CompX International (NYSE:CIX – Get Free Report) and Acme United (NYSE:ACU – Get Free Report) are both small-cap industrial products companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, risk, earnings, profitability, valuation and dividends.
Dividends
CompX International pays an annual dividend of $1.00 per share and has a dividend yield of 4.6%. Acme United pays an annual dividend of $0.56 per share and has a dividend yield of 1.8%. CompX International pays out 62.1% of its earnings in the form of a dividend. Acme United pays out 51.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. CompX International has increased its dividend for 2 consecutive years and Acme United has increased its dividend for 1 consecutive years. CompX International is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Valuation and Earnings
This table compares CompX International and Acme United’s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| CompX International | $160.60 million | 1.66 | $20.87 million | $1.61 | 13.48 |
| Acme United | $193.96 million | 0.58 | $3.04 million | $1.09 | 29.02 |
Volatility and Risk
CompX International has a beta of 0.66, meaning that its share price is 34% less volatile than the S&P 500. Comparatively, Acme United has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500.
Analyst Recommendations
This is a breakdown of recent ratings and price targets for CompX International and Acme United, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| CompX International | 0 | 0 | 0 | 0 | N/A |
| Acme United | 0 | 0 | 0 | 0 | N/A |
Profitability
This table compares CompX International and Acme United’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| CompX International | 12.32% | 12.39% | 11.16% |
| Acme United | 2.02% | 4.91% | 2.36% |
Insider & Institutional Ownership
8.0% of CompX International shares are owned by institutional investors. Comparatively, 62.3% of Acme United shares are owned by institutional investors. 0.4% of CompX International shares are owned by insiders. Comparatively, 34.1% of Acme United shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Summary
CompX International beats Acme United on 8 of the 14 factors compared between the two stocks.
About CompX International
CompX International Inc. manufactures and sells security products and recreational marine components primarily in North America. It operates in two segments, Security Products and Marine Components. The Security Products segment manufactures mechanical and electrical cabinet locks, and other locking mechanisms used in various applications, including ignition systems, mailboxes, file cabinets, desk drawers, tool storage cabinets, high security medical cabinetry, integrated inventory and access control secured narcotics boxes, electrical circuit panels, storage compartments, gas station security, and vending and cash containment machines. This segment serves recreational transportation, postal, office and institutional furniture, cabinetry, tool storage, healthcare, and other industries. The Marine Components segment manufactures and distributes stainless steel exhaust headers, exhaust pipes, mufflers, and other exhaust components; gauges, such as GPS speedometers and tachometers; mechanical and electronic controls and throttles; wake enhancement systems, trim tabs, steering wheels, and billet aluminum accessories; dash panels, LED indicators, and wire harnesses; and grab handles, pin cleats, and related hardware and accessories primarily for performance and ski/wakeboard boats for the recreational marine and other industries. The company sells its products directly to original equipment manufacturers, as well as through distributors. The company was incorporated in 1993 and is based in Dallas, Texas. CompX International Inc. is a subsidiary of NL Industries, Inc.
About Acme United
Acme United Corporation supplies first aid and safety, cutting, sharpening, and measuring products to the school, home, office, hardware, sporting goods, and industrial markets in the United States, Canada, Europe, and internationally. The company offers scissors, shears, knives, rulers, pencil sharpeners, paper trimmers, safety cutters, lettering products, glue guns, and other craft products under the Westcott brand name; and cutting tools under the Clauss brand. It also provides fixed blades, folding knives, sight cutting tools, and tactical tools under the Camillus brand; fishing tools and knives, as well as cut and puncture resistant gloves, telescopic landing nets, net containment systems, and tools and fishing gaffs under the Cuda brand; and sharpening tools under the DMT brand. In addition, the company offers first aid kit and safety solutions under the First Aid Only brand; portable eyewash solution and over-the-counter medication, including active ingredients aspirin, acetaminophen, and ibuprofen under the PhysiciansCare brand; bodily fluid and spill clean-up solution under the Spill Magic brand; various first aid kit, refill, and safety supplies, including CPR kits, burn kits, and automotive and emergency first aid kits under the First Aid Central; and alcohol prep pads, alcohol wipes, benzalkonium chloride wipes, various antiseptic wipes, castile soaps, and lens cleaning wipes under the Med-Nap brand. It sells its products directly and through its independent manufacturer representatives to wholesale, contract, and retail stationery distributors; office supply stores; school supply distributors; drug store retailers; industrial distributors; wholesale florists; mass market and e-commerce retailers; and hardware chains, as well as through its websites. The company was formerly known as Acme Shear Company and changed its name to Acme United Corporation in 1971. Acme United Corporation was founded in 1867 and is based in Shelton, Connecticut.
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