Head-To-Head Analysis: Dorman Products (DORM) & Westport Fuel Systems (WPRT)
Dorman Products (NASDAQ: DORM) and Westport Fuel Systems (NASDAQ:WPRT) are both auto/tires/trucks companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, analyst recommendations, earnings, valuation, risk, profitabiliy and dividends.
This is a breakdown of recent ratings and target prices for Dorman Products and Westport Fuel Systems, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Westport Fuel Systems||0||1||1||0||2.50|
Dorman Products presently has a consensus price target of $78.00, indicating a potential upside of 2.86%. Westport Fuel Systems has a consensus price target of $2.46, indicating a potential upside of 38.20%. Given Westport Fuel Systems’ stronger consensus rating and higher probable upside, analysts plainly believe Westport Fuel Systems is more favorable than Dorman Products.
Volatility and Risk
Dorman Products has a beta of 0.61, indicating that its share price is 39% less volatile than the S&P 500. Comparatively, Westport Fuel Systems has a beta of 2.16, indicating that its share price is 116% more volatile than the S&P 500.
This table compares Dorman Products and Westport Fuel Systems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Westport Fuel Systems||-32.70%||-81.28%||-25.48%|
Earnings and Valuation
This table compares Dorman Products and Westport Fuel Systems’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Dorman Products||$892.77 million||2.91||$198.46 million||$3.28||23.12|
|Westport Fuel Systems||$260.91 million||0.75||-$62.75 million||($0.80)||-2.22|
Dorman Products has higher revenue and earnings than Westport Fuel Systems. Westport Fuel Systems is trading at a lower price-to-earnings ratio than Dorman Products, indicating that it is currently the more affordable of the two stocks.
Insider and Institutional Ownership
76.6% of Dorman Products shares are held by institutional investors. Comparatively, 9.3% of Westport Fuel Systems shares are held by institutional investors. 11.7% of Dorman Products shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Dorman Products beats Westport Fuel Systems on 9 of the 13 factors compared between the two stocks.
About Dorman Products
Dorman Products, Inc. is a supplier of replacement parts and fasteners for passenger cars, light trucks and heavy duty trucks in the automotive aftermarket. As of December 31, 2016, the Company distributed and marketed approximately 155,000 different stock keeping units (SKU’s) of automotive replacement parts and fasteners. As of December 31, 2016, approximately 83% of its products were sold under brands that it owned and the remainder of its products were sold for resale under customers’ private labels, other brands or in bulk. Its products are sold in the United States through automotive aftermarket retailers, national, regional and local warehouse distributors, and specialty markets, and salvage yards. It also distributes automotive replacement parts outside the United States, with sales primarily into Canada, Mexico, Europe, the Middle East, and Australia. Its parts are marketed under the OE Solutions, TECHoice, AutoGrade, Conduct-Tite, FirstStop and HD Solutions brand names.
About Westport Fuel Systems
Westport Fuel Systems Inc, formerly Westport Innovations Inc, is a Canada-based provider of low-emission engine and fuel system technologies utilizing gaseous fuels. It operates through the Westport Operations segment. The Westport Operations segment designs, manufactures and sells compressed natural gas, liquefied natural gas, and liquefied petroleum gas components and systems to original equipment manufacturers and to aftermarket customers. Its subsidiaries design and manufacture a range of components, including pressure regulators, injectors, electronic control units, valves and filters; sell mono-fuel, bi-fuel and dual-fuel diesel blend conversion kits, and also offer full engine management systems and solutions. The Westport Operations segment has a customer base in Europe and North America, as well as in Asia, South America, and Africa.
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