PACCAR (NASDAQ:PCAR – Get Free Report) and Westport Fuel Systems (NASDAQ:WPRT – Get Free Report) are both industrials companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, valuation, earnings, profitability, analyst recommendations, risk and institutional ownership.
Profitability
This table compares PACCAR and Westport Fuel Systems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| PACCAR | 9.00% | 12.73% | 5.69% |
| Westport Fuel Systems | -493.15% | -51.88% | -37.23% |
Earnings and Valuation
This table compares PACCAR and Westport Fuel Systems”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| PACCAR | $28.44 billion | 2.05 | $2.38 billion | $4.76 | 23.28 |
| Westport Fuel Systems | $8.50 million | 3.73 | -$61.63 million | ($2.41) | -0.76 |
PACCAR has higher revenue and earnings than Westport Fuel Systems. Westport Fuel Systems is trading at a lower price-to-earnings ratio than PACCAR, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings and price targets for PACCAR and Westport Fuel Systems, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| PACCAR | 0 | 11 | 6 | 0 | 2.35 |
| Westport Fuel Systems | 1 | 2 | 1 | 0 | 2.00 |
PACCAR currently has a consensus price target of $131.50, indicating a potential upside of 18.67%. Westport Fuel Systems has a consensus price target of $1.82, indicating a potential upside of 0.27%. Given PACCAR’s stronger consensus rating and higher possible upside, equities research analysts clearly believe PACCAR is more favorable than Westport Fuel Systems.
Risk & Volatility
PACCAR has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500. Comparatively, Westport Fuel Systems has a beta of 2.12, meaning that its share price is 112% more volatile than the S&P 500.
Insider and Institutional Ownership
64.9% of PACCAR shares are held by institutional investors. Comparatively, 21.3% of Westport Fuel Systems shares are held by institutional investors. 2.0% of PACCAR shares are held by company insiders. Comparatively, 0.8% of Westport Fuel Systems shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Summary
PACCAR beats Westport Fuel Systems on 12 of the 14 factors compared between the two stocks.
About PACCAR
PACCAR Inc designs, manufactures, and distributes light, medium, and heavy-duty commercial trucks in the United States, Canada, Europe, Mexico, South America, Australia, and internationally. It operates through three segments: Truck, Parts, and Financial Services. The Truck segment designs, manufactures, and distributes trucks for the over-the-road and off-highway hauling of commercial and consumer goods. It sells its trucks through a network of independent dealers under the Kenworth, Peterbilt, and DAF nameplates. The Parts segment distributes aftermarket parts for trucks and related commercial vehicles. The Financial Services segment conducts full-service leasing operations under the PacLease trade name, as well as provides finance and leasing products and services to customers and dealers. This segment also offers equipment financing and administrative support services for its franchisees; retail loan and leasing services for small, medium, and large commercial trucking companies, as well as independent owners/operators and other businesses; and truck inventory financing services to independent dealers. In addition, this segment offers loans and leases directly to customers for the acquisition of trucks and related equipment. The company also manufactures and markets industrial winches under the Braden, Carco, and Gearmatic nameplates. PACCAR Inc was founded in 1905 and is headquartered in Bellevue, Washington.
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.
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