VHI vs NL

For growth investors, NL Industries, Inc.

(NL) is the stronger pick with 8. 5% revenue growth year-over-year, versus -1. 3% for Valhi, Inc. (VHI). Analysts rate Valhi, Inc. (VHI) a "Sell" — based on 1 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

Over the past 5 years, NL Industries, Inc.

(NL) delivered a total return of +19. 8%, compared to -46. 5% for Valhi, Inc. (VHI). Over 10 years, the gap is even starker: NL returned +226. 1% versus VHI's -2. 7%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), NL Industries, Inc.

(NL) is the lower-risk stock at 0. 87β versus Valhi, Inc. 's 1. 06β — meaning VHI is approximately 22% more volatile than NL relative to the S&P 500. On balance sheet safety, NL Industries, Inc. (NL) carries a lower debt/equity ratio of 0% versus 45% for Valhi, Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), NL Industries, Inc.

(NL) is pulling ahead at 8. 5% versus -1. 3% for Valhi, Inc. (VHI). On earnings-per-share growth, the picture is similar: Valhi, Inc. grew EPS -153. 3% year-over-year, compared to -155. 8% for NL Industries, Inc.. Over a 3-year CAGR, NL leads at -1. 7% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Valhi, Inc.

(VHI) is the more profitable company, earning -2. 8% net margin versus -23. 9% for NL Industries, Inc. — meaning it keeps -2. 8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: NL leads at 8. 6% versus -0. 0% for VHI. At the gross margin level — before operating expenses — NL leads at 30. 4%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, Valhi, Inc.

(VHI) trades at 4. 2x forward P/E versus 6. 9x for NL Industries, Inc. — 2. 7x cheaper on a one-year earnings basis.

All stocks in this comparison pay dividends.

NL Industries, Inc. (NL) offers the highest yield at 9. 5%, versus 2. 2% for Valhi, Inc. (VHI).

For long-horizon retirement investors, NL Industries, Inc.

(NL) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 87), 9. 5% yield, +226. 1% 10Y return). Both have compounded well over 10 years (NL: +226. 1%, VHI: -2. 7%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

These companies operate in different sectors (VHI (Basic Materials) and NL (Industrials)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: VHI is a small-cap quality compounder stock; NL is a small-cap income-oriented stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.