FreightCar America (NASDAQ:RAIL) and CHINA RWY CONST/ADR (OTCMKTS:CWYCY) are both transportation companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, dividends, institutional ownership, profitability, risk, valuation and earnings.
Valuation & Earnings
This table compares FreightCar America and CHINA RWY CONST/ADR’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|FreightCar America||$229.96 million||0.09||-$75.18 million||($4.48)||-0.36|
|CHINA RWY CONST/ADR||$120.17 billion||0.10||$2.92 billion||N/A||N/A|
Risk and Volatility
FreightCar America has a beta of 1.76, meaning that its stock price is 76% more volatile than the S&P 500. Comparatively, CHINA RWY CONST/ADR has a beta of 1.01, meaning that its stock price is 1% more volatile than the S&P 500.
Insider and Institutional Ownership
37.8% of FreightCar America shares are owned by institutional investors. 7.0% of FreightCar America shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
This is a breakdown of recent recommendations and price targets for FreightCar America and CHINA RWY CONST/ADR, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|CHINA RWY CONST/ADR||0||0||0||0||N/A|
FreightCar America presently has a consensus price target of $2.35, indicating a potential upside of 46.88%. Given FreightCar America’s higher probable upside, equities analysts plainly believe FreightCar America is more favorable than CHINA RWY CONST/ADR.
This table compares FreightCar America and CHINA RWY CONST/ADR’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|CHINA RWY CONST/ADR||2.36%||7.26%||1.66%|
CHINA RWY CONST/ADR beats FreightCar America on 7 of the 11 factors compared between the two stocks.
FreightCar America Company Profile
FreightCar America, Inc., through its subsidiaries, designs, manufactures, and sells railcars for the transportation of bulk commodities and containerized freight products primarily in North America. It operates through two segments, Manufacturing and Parts. The company offers a range of freight cars, including open top hoppers, covered hoppers, and gondolas; intermodal flats, such as well cars; and non-intermodal flat cars comprising slab, hot slab, ribbon rail, and bulkhead flats. It also provides stainless steel and hybrid stainless steel, and aluminum-bodied railcars, such as coal cars; and mill gondolas, coil gondolas, triple hoppers, ore hoppers and gondola railcars, ballast hopper cars, aggregate hopper cars, boxcars, woodchip hoppers, aluminum vehicle carriers, intermodal doublestack railcars, and articulated bulk container railcars. In addition, the company sells used railcars; leases, and rebuilds and converts railcars; and sells forged, cast, and fabricated parts for various railcars. It also exports its manufactured railcars to Latin America and the Middle East. The company's customers primarily include railroads, shippers, and financial institutions. FreightCar America, Inc. was founded in 1901 and is headquartered in Chicago, Illinois.
CHINA RWY CONST/ADR Company Profile
China Railway Construction Corporation Limited, together with its subsidiaries, engages in the construction of infrastructure projects in Mainland China and internationally. The company operates through five segments: Construction Operations; Survey, Design and Consultancy Operations; Manufacturing Operations; Real Estate Operations; and Other Business Operations. It undertake projects, such as railways, highways, urban rail transits, water conservancy and hydropower, housing construction, municipal engineering, bridges, tunnels, airports, and wharfs. The company is also involved in the provision of survey, design, and consultation services for railway, urban rail transit, highway, municipal engineering, industrial and civil building, and water transport engineering. In addition, it manufactures large railway track maintenance machinery, excavating machinery, rail equipment, special construction equipment, bridge construction equipment, railway electric construction equipment and materials, lifting equipment, and steel structures. Further, the company is involved in the real estate development; purchase and sale of goods and materials; and provision of logistics, financial agency, insurance, and asset management services. The company was founded in 2007 and is headquartered in Beijing, the People's Republic of China. China Railway Construction Corporation Limited is a subsidiary of China Railway Construction Corporation Group.
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