Westport Fuel Systems (NASDAQ: WPRT) and American Axle & Manufacturing Holdings (NYSE:AXL) are both small-cap auto/tires/trucks companies, but which is the better business? We will contrast the two companies based on the strength of their dividends, valuation, analyst recommendations, institutional ownership, risk, profitability and earnings.
Earnings and Valuation
This table compares Westport Fuel Systems and American Axle & Manufacturing Holdings’ gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Westport Fuel Systems||$285.75 million||1.05||-$51.95 million||($0.58)||-3.95|
|American Axle & Manufacturing Holdings||$4.76 billion||0.33||$815.70 million||$2.95||4.74|
This is a summary of current ratings for Westport Fuel Systems and American Axle & Manufacturing Holdings, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Westport Fuel Systems||0||1||3||0||2.75|
|American Axle & Manufacturing Holdings||2||2||8||0||2.50|
Westport Fuel Systems currently has a consensus price target of $2.78, indicating a potential upside of 21.22%. American Axle & Manufacturing Holdings has a consensus price target of $19.44, indicating a potential upside of 38.99%. Given American Axle & Manufacturing Holdings’ higher possible upside, analysts plainly believe American Axle & Manufacturing Holdings is more favorable than Westport Fuel Systems.
This table compares Westport Fuel Systems and American Axle & Manufacturing Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Westport Fuel Systems||-20.37%||-65.98%||-19.03%|
|American Axle & Manufacturing Holdings||5.32%||42.42%||6.42%|
Volatility and Risk
Westport Fuel Systems has a beta of 2.16, meaning that its share price is 116% more volatile than the S&P 500. Comparatively, American Axle & Manufacturing Holdings has a beta of 1.34, meaning that its share price is 34% more volatile than the S&P 500.
Institutional & Insider Ownership
9.4% of Westport Fuel Systems shares are owned by institutional investors. 1.0% of American Axle & Manufacturing Holdings 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.
American Axle & Manufacturing Holdings beats Westport Fuel Systems on 9 of the 13 factors compared between the two stocks.
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.
About American Axle & Manufacturing Holdings
American Axle & Manufacturing Holdings, Inc. (AAM) manufactures, engineers, designs and validates driveline and drivetrain systems and related components and chassis modules for light trucks, sport utility vehicles, crossover vehicles, passenger cars and commercial vehicles. Its driveline and drivetrain systems include components that transfer power from the transmission and deliver it to the drive wheels. Its driveline, drivetrain and related products include axles, driveheads, chassis modules, driveshafts, power transfer units, transfer cases, chassis and steering components, transmission parts, electric drive systems and metal-formed products. The Company’s subsidiary, e-AAM Driveline Systems AB (e-AAM), engineers and develops battery electric and hybrid driveline systems to be commercialized for crossover vehicles and passenger cars. As of April 6, 2017, it operated in 17 countries and had approximately 90 manufacturing, engineering and business office facilities around the world.
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