Trinity Industries, Inc. (TRN) vs Wabtec (WAB)

Trinity Industries, Inc. and Wabtec are both Railroads companies. Wabtec is the larger, with a market value of $49.0B against $2.2B — 22.1× the size. Trinity Industries, Inc. trades at the lower P/E: 6.6× against 38.6×. Wabtec grew revenue faster over the last twelve months: 13.4% against −19.0%. Trinity Industries, Inc. has the higher net margin (16.6% vs 10.6%) and the higher return on invested capital (7.59% vs 7.16%). Both pay a dividend; Trinity Industries, Inc. yields more (4.08% vs 0.50%). Across the 22 metrics below, Trinity Industries, Inc. leads on 13 and Wabtec on 9.

Valuation

Metric TRN WAB Railroads median
P/E 6.57 38.64 26.88
P/S 1.09 4.06 2.58
P/B 1.94 4.33 4.33
Price to free cash flow n/m 28.32 26.65
EV/EBITDA 6.91 22.12 13.50
EV/Sales 3.57 4.56 4.56
Earnings yield 15.23% 2.59% 3.59%
Free cash flow yield (15.20%) 3.53% 3.41%

Profitability

Metric TRN WAB Railroads median
Gross margin 26.24% 34.97% 30.61%
Operating margin 36.96% 16.39% 24.29%
Net margin 16.62% 10.59% 10.59%
Free cash flow margin (16.53%) 14.35% 8.43%
Return on equity 28.24% 11.49% 11.49%
Return on assets 3.98% 5.83% 3.98%
Return on invested capital 7.59% 7.16% 7.59%

Growth

Metric TRN WAB Railroads median
Revenue growth (TTM) (18.95%) 13.43% 2.97%
EPS growth (last fiscal year) 85.98% 13.08% —
Revenue growth, 5-year CAGR 4.27% 8.13% 5.27%
Net income growth, 5-year CAGR 0.00% 23.09% 0.88%

Health

Metric TRN WAB Railroads median
Debt to equity 4.56 0.58 0.58
Current ratio 1.89 1.12 1.03
Net debt to EBITDA 5.49 2.11 2.71

Dividend

Metric TRN WAB Railroads median
Dividend yield 4.08% 0.50% 2.17%
Payout ratio 0.88 0.17 0.19

Size

Metric TRN WAB Railroads median
Market cap 2.22b 49.02b 2.22b

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