ATS (NYSE:ATS – Get Free Report) and Westport Fuel Systems (NASDAQ:WPRT – Get Free Report) are both small-cap industrials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, institutional ownership, earnings, dividends, profitability and risk.
Institutional & Insider Ownership
75.8% of ATS shares are held by institutional investors. Comparatively, 21.3% of Westport Fuel Systems shares are held by institutional investors. 0.8% of Westport Fuel Systems shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Profitability
This table compares ATS and Westport Fuel Systems’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| ATS | 1.60% | 8.96% | 3.63% |
| Westport Fuel Systems | -493.15% | -51.88% | -37.23% |
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| ATS | 2 | 2 | 3 | 0 | 2.14 |
| Westport Fuel Systems | 1 | 2 | 1 | 0 | 2.00 |
ATS presently has a consensus target price of $42.50, suggesting a potential upside of 140.45%. Westport Fuel Systems has a consensus target price of $1.82, suggesting a potential downside of 0.92%. Given ATS’s stronger consensus rating and higher possible upside, equities analysts plainly believe ATS is more favorable than Westport Fuel Systems.
Valuation & Earnings
This table compares ATS and Westport Fuel Systems”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| ATS | $2.15 billion | 0.80 | $51.85 million | $0.34 | 51.99 |
| Westport Fuel Systems | $23.32 million | 1.37 | -$61.63 million | ($2.41) | -0.76 |
ATS has higher revenue and earnings than Westport Fuel Systems. Westport Fuel Systems is trading at a lower price-to-earnings ratio than ATS, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
ATS has a beta of 1.18, suggesting that its share price is 18% more volatile than the S&P 500. Comparatively, Westport Fuel Systems has a beta of 2.12, suggesting that its share price is 112% more volatile than the S&P 500.
Summary
ATS beats Westport Fuel Systems on 11 of the 14 factors compared between the two stocks.
About ATS
ATS Corporation, together with its subsidiaries, provides automation solutions worldwide. The company is also involved in planning, designing, building, commissioning, and servicing automated manufacturing and assembly systems, including automation products and test solutions. In addition, it offers pre-automation services comprising discovery and analysis, concept development, simulation, and total cost of ownership modelling; post automation services, including training, process optimization, preventative maintenance, emergency and on-call support, spare parts, retooling, retrofits, and equipment relocation; and contract manufacturing services, as well as after sales and services. Further, the company provides engineering design, prototyping, process verification, specification writing, software and manufacturing process controls development, standard automation products/platforms, equipment design and build, third-party equipment qualification, procurement and integration, automation system installation, product line commissioning, validation, and documentation services. Additionally, it offers value engineering, supply chain management, and integration and manufacturing capabilities, as well as other automation products and solutions; and software and digital solutions comprising connected factory floor management systems to capture, analyze, and use real time machine performance data to troubleshoot, deliver process and product solutions, prevent equipment downtime, drive operational efficiency, and unlock performance for sustainable production improvements. ATS Corporation serves life sciences, transportation and mobility, consumer products, food and beverage, electronics, nuclear, packaging, warehousing and distribution, and energy markets. The company was formerly known as ATS Automation Tooling Systems Inc. and changed its name to ATS Corporation in November 2022. ATS Corporation was founded in 1978 and is headquartered in Cambridge, Canada.
About Westport Fuel Systems
Westport Fuel Systems Inc. engages in the engineering, manufacturing, and supplying alternative fuel systems and components for use in transportation applications in Europe, Asia, North America, South America, and internationally. The company operates through two segments, Original Equipment Manufacturers and Independent Aftermarket. It offers alternative fuel systems and components, such as liquefied petroleum gas (LPG), compressed natural gas (CNG), liquefied natural gas (LNG), renewable natural gas or biomethane, and hydrogen; and pressure regulators, injectors, electronic control units, valves and filters, complete bi-fuel, mono-fuel and dual-fuel LPG and natural gas conversion kits and high-pressure hydrogen components. The company provides Westport’s LNG high pressure direct injection 2.0 fuel system and bi-fuel products; offers turnkey solutions covering all process phases, including prototyping, development, calibration, validation, homologation, vehicle conversion and logistic services, as well as systems for diesel-powered vehicles; and supplies hydrogen fuel system components for light, medium, and heavy-duty applications. It offers its products under the AFS, BRC, Emer, GFI, HPDI, Stako, Prins, Zavoli, OMVL, TA Gas Technology, Vialle, and Valtek brands. The company was formerly known as Westport Innovations Inc. and changed its name to Westport Fuel Systems Inc. in June 2016. Westport Fuel Systems Inc. was incorporated in 1995 and is headquartered in Vancouver, Canada.
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