GreenPower Motor (NASDAQ:GP) versus Freightcar America (NASDAQ:RAIL) Critical Survey

Freightcar America (NASDAQ:RAIL) and GreenPower Motor (NASDAQ:GP) are both small-cap industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, dividends, institutional ownership, risk, valuation, analyst recommendations and earnings.

Profitability

This table compares Freightcar America and GreenPower Motor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Freightcar America	-2.69%	-15.23%	2.90%
GreenPower Motor	-24.28%	N/A	-7.44%

Analyst Recommendations

This is a summary of recent recommendations and price targets for Freightcar America and GreenPower Motor, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Freightcar America	1	1	0	0	1.50
GreenPower Motor	1	1	0	0	1.50

Risk and Volatility

Freightcar America has a beta of 1.46, suggesting that its share price is 46% more volatile than the S&P 500. Comparatively, GreenPower Motor has a beta of 1.7, suggesting that its share price is 70% more volatile than the S&P 500.

Valuation & Earnings

This table compares Freightcar America and GreenPower Motor”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Freightcar America	$500.99 million	0.42	$38.10 million	($0.54)	-11.95
GreenPower Motor	$16.39 million	0.25	-$5.48 million	($0.68)	-0.85

Freightcar America has higher revenue and earnings than GreenPower Motor. Freightcar America is trading at a lower price-to-earnings ratio than GreenPower Motor, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

32.0% of Freightcar America shares are owned by institutional investors. Comparatively, 1.7% of GreenPower Motor shares are owned by institutional investors. 29.2% of Freightcar America shares are owned by company insiders. Comparatively, 28.1% of GreenPower Motor shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Freightcar America beats GreenPower Motor on 8 of the 11 factors compared between the two stocks.

About Freightcar America

FreightCar America, Inc., through its subsidiaries, engages in design, manufacture, and sale of railcars and railcar components for the transportation of bulk commodities and containerized freight products in the United States and Mexico. It operates in two segments, Manufacturing and Parts. The company offers a range of railcars, including open top hoppers, mill gondola cars, intermodal and non-intermodal flat cars, coal cars; bulk commodity cars covered hopper cars, coil steel cars, boxcars, woodchip hoppers, aluminum vehicle carriers, and articulated bulk container railcars. It also sells used railcars; rebuilds, converts, and leases railcars; and sells forged, cast, and fabricated parts for various railcars. The company's customers primarily include shippers, railroads, and financial institutions. FreightCar America, Inc. was founded in 1901 and is headquartered in Chicago, Illinois.

About GreenPower Motor

GreenPower Motor Company Inc. designs, manufactures, and distributes electric vehicles for commercial markets in the United States and Canada. The company offers commercial vehicles for delivery, public transit, schools, vanpools, micro-transit, shuttles, and other; and passenger, student, low floor transit, and cargo transportation. It leases its vehicles to customers. GreenPower Motor Company Inc. was founded in 2010 and is headquartered in Vancouver, Canada.