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 $459.9M against $330.1M — 1.4× the size. NLI Holdings, Inc. has negative trailing earnings, so its P/E is not meaningful; CompX International Inc. trades at 20.1×. CompX International Inc. has the higher net margin (13.6% vs −15.8%) and the higher return on invested capital (17.9% vs 3.44%). Both pay a dividend; NLI Holdings, Inc. yields more (5.88% vs 3.34%). Across the 19 metrics below, CompX International Inc. leads on 12 and NLI Holdings, Inc. on 7.

Valuation

Metric CIX NL Security & Protection Services median
P/E 20.08 n/m 22.21
P/S 2.74 2.00 1.12
P/B 3.06 0.85 2.11
Price to free cash flow 20.89 39.99 20.05
EV/EBITDA 13.07 11.61 11.50
EV/Sales 2.41 1.33 2.08
Earnings yield 4.98% (7.84%) 2.19%
Free cash flow yield 4.79% 2.50% 2.44%

Profitability

Metric CIX NL Security & Protection Services median
Gross margin 32.08% 32.08% 41.45%
Operating margin 16.30% 9.25% 8.06%
Net margin 13.60% (15.79%) 3.11%
Free cash flow margin 13.11% 5.01% 1.45%
Return on equity 14.97% (6.40%) 5.40%
Return on assets 13.49% (5.14%) 1.07%
Return on invested capital 17.88% 3.44% 2.40%

Growth

Metric CIX NL Security & Protection Services median
Revenue growth (TTM) 5.96% 5.96% 6.22%
EPS growth (last fiscal year) 17.04% (155.80%) 29.52%
Revenue growth, 5-year CAGR 6.68% 6.68% 7.35%
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 6.69 9.02 1.93
Net debt to EBITDA (2.06) (7.90) 1.55

Dividend

Metric CIX NL Security & Protection Services median
Dividend yield 3.34% 5.88% 1.72%
Payout ratio 0.67 — 0.28

Size

Metric CIX NL Security & Protection Services median
Market cap 459.91m 330.07m 394.99m

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