Critical Comparison: Aspen Aerogels (NYSE:ASPN) vs. LIXIL (OTCMKTS:JSGRY)

Aspen Aerogels (NYSE:ASPN) and LIXIL (OTCMKTS:JSGRY) are both industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, earnings, risk, dividends, institutional ownership, analyst recommendations and profitability.

Profitability

This table compares Aspen Aerogels and LIXIL’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Aspen Aerogels	0.39%	0.74%	0.51%
LIXIL	N/A	N/A	N/A

Insider & Institutional Ownership

97.6% of Aspen Aerogels shares are owned by institutional investors. Comparatively, 0.0% of LIXIL shares are owned by institutional investors. 4.3% of Aspen Aerogels shares are owned 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 breakdown of current ratings and recommmendations for Aspen Aerogels and LIXIL, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Aspen Aerogels	0	0	9	1	3.10
LIXIL	0	0	0	0	N/A

Aspen Aerogels presently has a consensus target price of $29.40, indicating a potential upside of 47.66%. Given Aspen Aerogels’ higher probable upside, equities research analysts clearly believe Aspen Aerogels is more favorable than LIXIL.

Valuation and Earnings

This table compares Aspen Aerogels and LIXIL”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Aspen Aerogels	$357.25 million	4.24	-$45.81 million	($0.44)	-45.25
LIXIL	N/A	N/A	N/A	$210.84	0.10

LIXIL has lower revenue, but higher earnings than Aspen Aerogels. Aspen Aerogels is trading at a lower price-to-earnings ratio than LIXIL, indicating that it is currently the more affordable of the two stocks.

Summary

Aspen Aerogels beats LIXIL on 9 of the 11 factors compared between the two stocks.

About Aspen Aerogels

Aspen Aerogels, Inc. designs, develops, manufactures, and sells aerogel insulation products primarily for use in the energy infrastructure and sustainable insulation materials markets in the United States, Asia, Canada, Europe, and Latin America. It operates in two segments, Energy Industrial and Thermal Barrier. The company offers PyroThin thermal barriers for use in lithium-ion batteries in electric vehicles and energy storage industries; Pyrogel XTE that reduces the risk of corrosion under insulation in energy infrastructure operating systems; and Pyrogel HPS for applications within the power generation market. It also offers Pyrogel XTF to provide protection against fire; Cryogel Z for sub-ambient and cryogenic applications in the energy infrastructure market; Spaceloft Subsea for use in pipe-in-pipe applications in offshore oil production; and Cryogel X201, which is used in designing cold systems, such as refrigerated appliances, cold storage equipment, and aerospace systems. The company was founded in 2001 and is headquartered in Northborough, Massachusetts.

About LIXIL

LIXIL Corporation, through its subsidiaries, operates water technology and housing technology business in Japan and internationally. It offers fixtures and vanities, which includes ceramic toilets, bidets, urinals, and basins, and vanities; bathing products, such as bath tubs, showers enclosures, whirlpool, and wellness solutions; and bathroom fittings, including single and two lever faucets and accessories, as well as hands and head showers, thermostats, and shower systems. The company also provides shower toilets comprising integrated shower toilet system and seats; prefabricated bath and kitchen systems for houses condos, and other projects; smart water sensors and controllers; behind the wall systems and commercial fittings; kitchen fittings and sinks; and tiles. In addition, it offers thermal efficiency and insulation windows; entrance doors; exteriors, including entrance gates, garages, terraces, and garden rooms; and wooden interior furnishing materials, as well as other products, such as fire-resistant siding materials, aluminum frames for solar photovoltaic systems, and super wall construction. Further, the company provides housing solutions; and sells and manages real estate and other services. It offers its products under the INAX, GROHE, American Standard, TOSTEM, RICHELLE, SPAGE, Interio, exsior, SUPER WALL, ASAHI TOSTEM, DXV, NODEA, COBRA, and SATO brands. The company was formerly known as LIXIL Group Corporation. LIXIL Corporation was founded in 1875 and is headquartered in Tokyo, Japan.