Capstone Turbine (NASDAQ: CPST) and Westport Fuel Systems (NASDAQ:WPRT) are both small-cap industrial products companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, risk, analyst recommendations and valuation.
Risk and Volatility
Capstone Turbine has a beta of 0.27, suggesting that its share price is 73% less volatile than the S&P 500. Comparatively, Westport Fuel Systems has a beta of 1.89, suggesting that its share price is 89% more volatile than the S&P 500.
This is a summary of current ratings and target prices for Capstone Turbine and Westport Fuel Systems, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Westport Fuel Systems||0||1||5||0||2.83|
Capstone Turbine currently has a consensus target price of $2.00, suggesting a potential upside of 9.89%. Westport Fuel Systems has a consensus target price of $4.08, suggesting a potential upside of 76.77%. Given Westport Fuel Systems’ higher probable upside, analysts clearly believe Westport Fuel Systems is more favorable than Capstone Turbine.
Institutional & Insider Ownership
11.3% of Capstone Turbine shares are owned by institutional investors. Comparatively, 20.3% of Westport Fuel Systems shares are owned by institutional investors. 1.8% of Capstone Turbine 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.
Earnings and Valuation
This table compares Capstone Turbine and Westport Fuel Systems’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Capstone Turbine||$77.17 million||1.28||-$23.92 million||($0.78)||-2.33|
|Westport Fuel Systems||$247.10 million||1.23||-$9.97 million||($0.44)||-5.25|
Westport Fuel Systems has higher revenue and earnings than Capstone Turbine. Westport Fuel Systems is trading at a lower price-to-earnings ratio than Capstone Turbine, indicating that it is currently the more affordable of the two stocks.
This table compares Capstone Turbine and Westport Fuel Systems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Westport Fuel Systems||-4.08%||-50.05%||-16.86%|
Westport Fuel Systems beats Capstone Turbine on 10 of the 14 factors compared between the two stocks.
About Capstone Turbine
Capstone Turbine Corporation develops, manufactures, markets, and services microturbine technology solutions for use in stationary distributed power generation applications worldwide. It offers microturbine units, components, and various accessories for applications, including cogeneration comprising combined heat and power (CHP) and integrated CHP, as well as combined cooling, heat, and power; and renewable energy, natural resources, and critical power supply. The company's microturbines are also used as battery charging generators for hybrid electric vehicle applications. It also provides various accessories, including rotary gas compressors with digital controls; heat recovery modules for CHP applications; dual mode controllers that allow automatic transition between grid connect and stand-alone modes; batteries with digital controls for stand-alone or dual-mode operations; batteries with digital controls; power servers for multipacked installations; protocol converters for Internet access; packaging options; and miscellaneous parts, such as frames, exhaust ducting, backflow dampers, and installation hardware. In addition, the company remanufactures microturbine engines; and provides after-market parts and services. It markets and sells its products primarily through distributors and original equipment manufacturers. Capstone Turbine Corporation was founded in 1988 and is headquartered in Van Nuys, California.
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.
Receive News & Ratings for Capstone Turbine Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Capstone Turbine and related companies with MarketBeat.com's FREE daily email newsletter.