Freightcar America, Inc. (RAIL) vs Wabtec (WAB)

Freightcar America, Inc. and Wabtec are both Railroads companies. Wabtec is the larger, with a market value of $49.0B against $243.3M — 201.5× the size. Freightcar America, Inc. has negative trailing earnings, so its P/E is not meaningful; Wabtec trades at 38.6×. Wabtec grew revenue faster over the last twelve months: 13.4% against −0.50%. Wabtec has the higher net margin (10.6% vs −2.69%) and the lower return on invested capital (7.16% vs 14.8%). Across the 21 metrics below, Freightcar America, Inc. leads on 11 and Wabtec on 10.

Valuation

Metric RAIL WAB Railroads median
P/E n/m 38.64 26.88
P/S 0.49 4.06 2.58
P/B 6.33 4.33 4.33
Price to free cash flow 12.81 28.32 26.65
EV/EBITDA 10.98 22.12 13.50
EV/Sales 0.58 4.56 4.56
Earnings yield (5.85%) 2.59% 3.59%
Free cash flow yield 7.81% 3.53% 3.41%

Profitability

Metric RAIL WAB Railroads median
Gross margin 12.50% 34.97% 30.61%
Operating margin 3.77% 16.39% 24.29%
Net margin (2.69%) 10.59% 10.59%
Free cash flow margin 3.86% 14.35% 8.43%
Return on equity 52.80% 11.49% 11.49%
Return on assets (4.13%) 5.83% 3.98%
Return on invested capital 14.75% 7.16% 7.59%

Growth

Metric RAIL WAB Railroads median
Revenue growth (TTM) (0.50%) 13.43% 2.97%
EPS growth (last fiscal year) 144.18% 13.08% —
Revenue growth, 5-year CAGR 35.81% 8.13% 5.27%
Net income growth, 5-year CAGR 0.00% 23.09% 0.88%

Health

Metric RAIL WAB Railroads median
Debt to equity 2.78 0.58 0.58
Current ratio 1.81 1.12 1.03
Net debt to EBITDA 1.07 2.11 2.71

Dividend

Metric RAIL WAB Railroads median
Dividend yield — 0.50% 2.17%
Payout ratio 0.00 0.17 0.19

Size

Metric RAIL WAB Railroads median
Market cap 243.31m 49.02b 2.22b

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