CompX International Inc. (CIX) vs NLI Holdings, Inc. (NL)

CompX International Inc. and NLI Holdings, Inc. are both Security & Protection Services companies. CompX International Inc. is the larger, with a market value of $451.8M against $347.2M — 1.3× the size. NLI Holdings, Inc. has negative trailing earnings, so its P/E is not meaningful; CompX International Inc. trades at 19.2×. CompX International Inc. has the higher net margin (14.0% vs −2.98%) and the higher return on invested capital (19.7% vs 2.60%). Both pay a dividend; NLI Holdings, Inc. yields more (5.78% vs 3.31%). Across the 18 metrics below, CompX International Inc. leads on 11 and NLI Holdings, Inc. on 7.

Valuation

Metric CIX NL Security & Protection Services median
P/E 19.17 n/m 22.53
P/S 2.69 1.99 1.17
P/B 3.05 0.84 2.09
Price to free cash flow 18.88 34.38 19.49
EV/EBITDA 12.36 11.17 11.17
EV/Sales 2.35 1.33 1.97
Earnings yield 5.22% (1.48%) 3.26%
Free cash flow yield 5.30% 2.91% 1.46%

Profitability

Metric CIX NL Security & Protection Services median
Gross margin 32.50% 32.50% 38.10%
Operating margin 16.89% 9.80% 9.80%
Net margin 13.95% (2.98%) 2.88%
Free cash flow margin 14.26% 5.79% 0.00%
Return on equity 16.30% (1.26%) 8.74%
Return on assets 14.38% (1.00%) 1.21%
Return on invested capital 19.68% 2.60% 1.98%

Growth

Metric CIX NL Security & Protection Services median
Revenue growth (TTM) 4.32% 4.32% 7.23%
EPS growth (last fiscal year) 17.04% (155.80%) 35.69%
Revenue growth, 5-year CAGR 6.68% 6.68% 7.09%
Net income growth, 5-year CAGR 13.54% 0.00% 0.00%

Health

Metric CIX NL Security & Protection Services median
Debt to equity 0.00 0.00 0.20
Current ratio 5.39 7.25 1.92
Net debt to EBITDA (2.06) (7.90) 1.55

Dividend

Metric CIX NL Security & Protection Services median
Dividend yield 3.31% 5.78% 1.65%
Payout ratio 0.63 — 0.28

Size

Metric CIX NL Security & Protection Services median
Market cap 451.77m 347.18m 408.73m

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