DXPE (DXP Enterprises Inc) vs S&P 500 Comparison

DXPE

S&P 500

Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

Select Stock to Compare

DXPE

S&P 500

Difference

1Y 3Y 5Y 10Y 15Y 20Y

DXPE

S&P 500

Add Stock

Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

Select Stock to Compare

S&P 500

DXPE

8001

8058

8031

GWW

Add Stock

1Y 3Y 5Y 10Y 15Y 20Y

Compare the stock's returns with its benchmark index and competitors. Gain insights into its relative performance over time.

Select Stock to Compare

DXP Enterprises Inc
Glance View

Economic Moat

None

Market Cap

1.3B USD

Industry

Trading Companies & Distributors

DXP Enterprises Inc. embarked on its journey in 1908, evolving from a modest industrial distributor into a versatile powerhouse serving a broad spectrum of industries. Headquartered in Houston, Texas, the company has strategically positioned itself as a leading player in industrial distribution, specializing in the supply of maintenance, repair, and operating (MRO) products, equipment, and services. Their expertise spans a wide array of sectors, including oil and gas, food and beverage, and manufacturing, enabling them to serve as a crucial link in the supply chains of their diverse clientele. DXP's operations are compartmentalized into three main segments: Service Centers, Supply Chain Services, and Innovative Pumping Solutions, each of which caters to different facets of industrial needs, leveraging the company's extensive range of products and services. The essence of DXP’s business model lies in its ability to forge deep-rooted relationships with both customers and suppliers, providing bespoke solutions that address specific operational challenges. By offering a comprehensive selection of over a million products, from bearings and power transmission components to cutting and safety products, DXP ensures that its clients' operations run smoothly and efficiently. Additionally, the company generates revenue through its innovative pumping solutions, where it designs and customizes sophisticated pump systems and packages for unique customer applications. This blend of product and service offerings not only drives direct sales but also enhances long-term customer loyalty, creating a reliable stream of recurring revenue. As DXP Enterprises continues to adapt to the ever-evolving industrial landscape, its resilience and commitment to customer-centric innovation underscore its enduring success in the industrial distribution arena.

View DXPE Analysis

DXPE Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

JP		Itochu Corp TSE:8001	Add
JP		Mitsubishi Corp TSE:8058	Add
JP		Mitsui & Co Ltd TSE:8031	Add
US		W W Grainger Inc NYSE:GWW	Add
US	W	WW Grainger Inc XMUN:GWW	Add
US		United Rentals Inc NYSE:URI	Add
US		Fastenal Co NASDAQ:FAST	Add
UK	F	Ferguson PLC NYSE:FERG	Add
IN		Adani Enterprises Ltd NSE:ADANIENT	Add
UK		Ashtead Group PLC LSE:AHT	Add

JP		Itochu Corp TSE:8001	Select
JP		Mitsubishi Corp TSE:8058	Select
JP		Mitsui & Co Ltd TSE:8031	Select
US		W W Grainger Inc NYSE:GWW	Select
US	W	WW Grainger Inc XMUN:GWW	Select
US		United Rentals Inc NYSE:URI	Select
US		Fastenal Co NASDAQ:FAST	Select
UK	F	Ferguson PLC NYSE:FERG	Select
IN		Adani Enterprises Ltd NSE:ADANIENT	Select
UK		Ashtead Group PLC LSE:AHT	Select

JP		Itochu Corp TSE:8001	Add
JP		Mitsubishi Corp TSE:8058	Add
JP		Mitsui & Co Ltd TSE:8031	Add
US		W W Grainger Inc NYSE:GWW	Add
US	W	WW Grainger Inc XMUN:GWW	Add
US		United Rentals Inc NYSE:URI	Add
US		Fastenal Co NASDAQ:FAST	Add
UK	F	Ferguson PLC NYSE:FERG	Add
IN		Adani Enterprises Ltd NSE:ADANIENT	Add
UK		Ashtead Group PLC LSE:AHT	Add

	Franklin Covey Co NYSE:FC	35.3 USD
	Mohawk Industries Inc NYSE:MHK	118.28 USD 0.84%
	Ardmore Shipping Corp NYSE:ASC	12.56 USD -1.64%
	ASGN Inc NYSE:ASGN	86.92 USD
	Skyworks Solutions Inc NASDAQ:SWKS	92.63 USD -0.03%
	Weatherford International PLC NASDAQ:WFRD	72.13 USD -3.57%

	Johnson & Johnson NYSE:JNJ	142.27 USD
	Bank of America Corp NYSE:BAC	46.21 USD
	Mastercard Inc NYSE:MA	516.4 USD 0.98%
	Salesforce Inc NYSE:CRM	326.9 USD
	Abbvie Inc NYSE:ABBV	178.5 USD -0.57%
	Home Depot Inc NYSE:HD	387.2 USD

DXPE

vs

S&P 500

Stocks Performance
DXPE vs S&P 500

Performance Gap
DXPE vs S&P 500

Performance By Year
DXPE vs S&P 500

Competitors Performance
DXP Enterprises Inc vs Peers

DXP Enterprises Inc
Glance View

Company

Help

Tools

Stocks

US	G	GE Vernova LLC NYSE:GEV	Add
NL	N	Nepi Rockcastle NV JSE:NRP	Add
US		Schlumberger NV NYSE:SLB	Add
US	B	Baker Hughes Co NASDAQ:BKR	Add
ID		Amman Mineral Internasional Tbk PT IDX:AMMN	Add
US	R	Reddit Inc NYSE:RDDT	Add
CH	G	Galderma Group AG SIX:GALD	Add
US		Halliburton Co NYSE:HAL	Add
LU		Tenaris SA MIL:TEN	Add
IN		Jio Financial Services Ltd NSE:JIOFIN	Add

	Arista Networks Inc NYSE:ANET	115.51 USD
	Visa Inc NYSE:V	312.6 USD
	Texas Pacific Land Corp NYSE:TPL	1 275.94 USD 1.4%
	KLA Corp NASDAQ:KLAC	686.2 USD -0.45%
	Manhattan Associates Inc NASDAQ:MANH	272.49 USD 1.6%
	Pinduoduo Inc NASDAQ:PDD	100.32 USD

	Salesforce Inc NYSE:CRM	326.9 USD
	ServiceNow Inc NYSE:NOW	1 049.08 USD -0.48%
	EOG Resources Inc NYSE:EOG	128.46 USD 0.71%
	Copart Inc NASDAQ:CPRT	56.78 USD 0.96%
	Applied Materials Inc NASDAQ:AMAT	176.99 USD -0.47%
	Synopsys Inc NASDAQ:SNPS	502 USD 2.95%

	Johnson & Johnson NYSE:JNJ	142.27 USD
	Berkshire Hathaway Inc NYSE:BRK.A	677 925 USD
	Bank of America Corp NYSE:BAC	46.21 USD
	Mastercard Inc NYSE:MA	516.4 USD 0.98%
	UnitedHealth Group Inc NYSE:UNH	524.52 USD
	Exxon Mobil Corp NYSE:XOM	106.93 USD

DXPE vs S&P 500

Stocks Performance DXPE vs S&P 500

Performance Gap DXPE vs S&P 500

Performance By Year DXPE vs S&P 500

Competitors Performance DXP Enterprises Inc vs Peers

DXP Enterprises Inc Glance View

Company

Help

Tools

Stocks

DXPE

vs

S&P 500

Stocks Performance
DXPE vs S&P 500

Performance Gap
DXPE vs S&P 500

Performance By Year
DXPE vs S&P 500

Competitors Performance
DXP Enterprises Inc vs Peers

DXP Enterprises Inc
Glance View