Westinghouse Air Brake Technologies (NYSE:WAB) and Astec Industries (NASDAQ:ASTE) are both transportation companies, but which is the superior stock? We will compare the two businesses based on the strength of their dividends, risk, valuation, earnings, analyst recommendations, institutional ownership and profitability.
Profitability
This table compares Westinghouse Air Brake Technologies and Astec Industries' net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Westinghouse Air Brake Technologies | 5.29% | 7.60% | 3.99% |
Astec Industries | 1.24% | 8.27% | 6.32% |
Analyst Recommendations
This is a breakdown of current ratings and recommmendations for Westinghouse Air Brake Technologies and Astec Industries, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Westinghouse Air Brake Technologies | 0 | 2 | 5 | 0 | 2.71 |
Astec Industries | 0 | 3 | 1 | 0 | 2.25 |
Westinghouse Air Brake Technologies presently has a consensus target price of $83.3333, indicating a potential upside of 3.38%. Astec Industries has a consensus target price of $72.6667, indicating a potential downside of 5.99%. Given Westinghouse Air Brake Technologies' stronger consensus rating and higher probable upside, equities analysts plainly believe Westinghouse Air Brake Technologies is more favorable than Astec Industries.
Risk & Volatility
Westinghouse Air Brake Technologies has a beta of 1.53, suggesting that its share price is 53% more volatile than the S&P 500. Comparatively, Astec Industries has a beta of 1.35, suggesting that its share price is 35% more volatile than the S&P 500.
Institutional and Insider Ownership
88.1% of Westinghouse Air Brake Technologies shares are owned by institutional investors. Comparatively, 90.9% of Astec Industries shares are owned by institutional investors. 5.4% of Westinghouse Air Brake Technologies shares are owned by company insiders. Comparatively, 1.4% of Astec Industries shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Valuation and Earnings
This table compares Westinghouse Air Brake Technologies and Astec Industries' revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Westinghouse Air Brake Technologies | $8.20 billion | 1.86 | $326.70 million | $4.17 | 19.33 |
Astec Industries | $1.17 billion | 1.49 | $22.31 million | $1.55 | 49.87 |
Westinghouse Air Brake Technologies has higher revenue and earnings than Astec Industries. Westinghouse Air Brake Technologies is trading at a lower price-to-earnings ratio than Astec Industries, indicating that it is currently the more affordable of the two stocks.
Dividends
Westinghouse Air Brake Technologies pays an annual dividend of $0.48 per share and has a dividend yield of 0.6%. Astec Industries pays an annual dividend of $0.44 per share and has a dividend yield of 0.6%. Westinghouse Air Brake Technologies pays out 11.5% of its earnings in the form of a dividend. Astec Industries pays out 28.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Westinghouse Air Brake Technologies has increased its dividend for 1 consecutive years and Astec Industries has increased its dividend for 1 consecutive years. Westinghouse Air Brake Technologies is clearly the better dividend stock, given its higher yield and lower payout ratio.
Summary
Westinghouse Air Brake Technologies beats Astec Industries on 12 of the 16 factors compared between the two stocks.