Westport Fuel Systems (NASDAQ:WPRT – Get Free Report) and Wabash National (NYSE:WNC – Get Free Report) are both small-cap auto/tires/trucks companies, but which is the superior stock? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, risk, dividends, valuation and earnings.
Profitability
This table compares Westport Fuel Systems and Wabash National’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Westport Fuel Systems | -68.55% | -37.38% | -21.60% |
| Wabash National | -4.41% | -30.16% | -8.79% |
Institutional and Insider Ownership
21.3% of Westport Fuel Systems shares are owned by institutional investors. Comparatively, 97.0% of Wabash National shares are owned by institutional investors. 0.8% of Westport Fuel Systems shares are owned by company insiders. Comparatively, 2.8% of Wabash National shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Westport Fuel Systems | 1 | 2 | 1 | 0 | 2.00 |
| Wabash National | 1 | 1 | 2 | 0 | 2.25 |
Westport Fuel Systems presently has a consensus price target of $4.38, suggesting a potential upside of 128.46%. Wabash National has a consensus price target of $18.00, suggesting a potential upside of 34.21%. Given Westport Fuel Systems’ higher probable upside, analysts plainly believe Westport Fuel Systems is more favorable than Wabash National.
Volatility & Risk
Westport Fuel Systems has a beta of 2.1, meaning that its stock price is 110% more volatile than the S&P 500. Comparatively, Wabash National has a beta of 1.43, meaning that its stock price is 43% more volatile than the S&P 500.
Earnings & Valuation
This table compares Westport Fuel Systems and Wabash National”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Westport Fuel Systems | $23.32 million | 1.56 | -$61.63 million | ($3.75) | -0.51 |
| Wabash National | $1.54 billion | 0.35 | $211.45 million | ($1.60) | -8.38 |
Wabash National has higher revenue and earnings than Westport Fuel Systems. Wabash National is trading at a lower price-to-earnings ratio than Westport Fuel Systems, indicating that it is currently the more affordable of the two stocks.
Summary
Wabash National beats Westport Fuel Systems on 10 of the 14 factors compared between the two stocks.
About Westport Fuel Systems
Westport Fuel Systems Inc. engages in the engineering, manufacturing, and supplying alternative fuel systems and components for use in transportation applications in Europe, Asia, North America, South America, and internationally. The company operates through two segments, Original Equipment Manufacturers and Independent Aftermarket. It offers alternative fuel systems and components, such as liquefied petroleum gas (LPG), compressed natural gas (CNG), liquefied natural gas (LNG), renewable natural gas or biomethane, and hydrogen; and pressure regulators, injectors, electronic control units, valves and filters, complete bi-fuel, mono-fuel and dual-fuel LPG and natural gas conversion kits and high-pressure hydrogen components. The company provides Westport’s LNG high pressure direct injection 2.0 fuel system and bi-fuel products; offers turnkey solutions covering all process phases, including prototyping, development, calibration, validation, homologation, vehicle conversion and logistic services, as well as systems for diesel-powered vehicles; and supplies hydrogen fuel system components for light, medium, and heavy-duty applications. It offers its products under the AFS, BRC, Emer, GFI, HPDI, Stako, Prins, Zavoli, OMVL, TA Gas Technology, Vialle, and Valtek brands. The company was formerly known as Westport Innovations Inc. and changed its name to Westport Fuel Systems Inc. in June 2016. Westport Fuel Systems Inc. was incorporated in 1995 and is headquartered in Vancouver, Canada.
About Wabash National
Wabash National Corporation provides connected solutions for the transportation, logistics, and distribution industries primarily in the United States. The company operates through two segments, Transportation Solutions and Parts & Services. The Transportation Solutions segment designs and manufactures transportation-related equipment and products dry and refrigerated van trailers, platform trailers, tank trailers, and truck-mounted tanks; truck bodies for dry-freight transportation; cargo and cargo XL bodies for commercial applications; refrigerated truck bodies; platform truck bodies; and used trailers, as well as laminated hardwood oak flooring products. The Parts & Services segment provides aftermarket parts and services; steel flatbed bodies, truck body mounting, shelving for package delivery, partitions, roof racks, hitches, liftgates, thermal solutions, and others; truck body repair parts; and door repair and replacement, collision repair, and basic maintenance services. It also develops and scales a digital marketplace for the transportation and logistics distribution industry; operates a parts and services distribution platform; and stainless steel storage tanks and silos, mixers, and processors for the dairy, food and beverage, pharmaceutical, chemical, craft brewing, and biotech markets; trailers as a service; and composite products, including truck bodies, overhead doors, and other industrial application products, as well as used trailers. The company offers its products under the Wabash, DuraPlate, DuraPlateHD, DuraPlate AeroSkirt, and AeroSkirt CX brands, as well as EcoNex brand. It serves its products to truckload common carriers, leasing companies, private fleet carriers, less-than-truckload common carriers, and package carriers. Wabash National Corporation was founded in 1985 and is headquartered in Lafayette, Indiana.
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