Fuel Systems Solutions (NASDAQ: FSYS) and Westport Fuel Systems (NASDAQ:WPRT) are both small-cap cyclical consumer goods & services companies, but which is the better stock? We will compare the two companies based on the strength of their risk, dividends, institutional ownership, earnings, analyst recommendations, profitability and valuation.

Earnings & Valuation

This table compares Fuel Systems Solutions and Westport Fuel Systems’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Fuel Systems Solutions N/A N/A N/A ($2.30) -2.35
Westport Fuel Systems $224.90 million 1.58 -$97.57 million ($0.40) -6.82

Fuel Systems Solutions has higher earnings, but lower revenue than Westport Fuel Systems. Westport Fuel Systems is trading at a lower price-to-earnings ratio than Fuel Systems Solutions, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a summary of current ratings for Fuel Systems Solutions and Westport Fuel Systems, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Fuel Systems Solutions 0 0 0 0 N/A
Westport Fuel Systems 0 1 4 0 2.80

Westport Fuel Systems has a consensus price target of $3.23, indicating a potential upside of 18.32%. Given Westport Fuel Systems’ higher probable upside, analysts plainly believe Westport Fuel Systems is more favorable than Fuel Systems Solutions.

Institutional & Insider Ownership

16.0% of Westport Fuel Systems shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Risk and Volatility

Fuel Systems Solutions has a beta of 1.98, meaning that its stock price is 98% more volatile than the S&P 500. Comparatively, Westport Fuel Systems has a beta of 2.15, meaning that its stock price is 115% more volatile than the S&P 500.

Profitability

This table compares Fuel Systems Solutions and Westport Fuel Systems’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Fuel Systems Solutions -11.53% -16.93% -11.31%
Westport Fuel Systems -14.85% -64.05% -19.69%

Summary

Westport Fuel Systems beats Fuel Systems Solutions on 6 of the 9 factors compared between the two stocks.

About Fuel Systems Solutions

Fuel Systems Solutions, Inc. is engaged in providing alternative fuel systems for transportation, industrial and refueling applications across the world, as well as reduction technologies for the heavy duty truck and rail markets. The Company operates through two segments: FSS Industrial and FSS Automotive. The FSS Industrial segment consists of its industrial mobile and stationary, auxiliary power units (APU) and the heavy duty commercial transportation operations. The FSS Automotive segment consists of the Company’s passenger and light duty commercial transportation, automotive aftermarket and transportation infrastructure operations. Its products include gaseous fuel regulators, fuel shut-off valves, fuel metering and delivery systems, complete engine systems, auxiliary power systems and electronic controls for use in internal combustion engines. In addition to these core products, which it manufactures, the Company also designs, assembles and markets ancillary components.

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.

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