Nabtesco (OTCMKTS:NCTKF) versus Greenbrier Companies (NYSE:GBX) Critical Contrast

Nabtesco (OTCMKTS:NCTKF) and Greenbrier Companies (NYSE:GBX) are both small-cap transportation companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, risk, institutional ownership, profitability, analyst recommendations, valuation and dividends.

Analyst Recommendations

This is a summary of current recommendations and price targets for Nabtesco and Greenbrier Companies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nabtesco	0	0	0	0	0.00
Greenbrier Companies	1	0	1	0	2.00

Greenbrier Companies has a consensus price target of $59.50, indicating a potential upside of 16.92%. Given Greenbrier Companies’ stronger consensus rating and higher probable upside, analysts plainly believe Greenbrier Companies is more favorable than Nabtesco.

Institutional & Insider Ownership

95.6% of Greenbrier Companies shares are held by institutional investors. 1.8% of Greenbrier Companies shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Nabtesco and Greenbrier Companies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nabtesco	2.98%	4.35%	2.81%
Greenbrier Companies	6.48%	14.56%	5.43%

Volatility and Risk

Nabtesco has a beta of -0.05, meaning that its stock price is 105% less volatile than the S&P 500. Comparatively, Greenbrier Companies has a beta of 1.71, meaning that its stock price is 71% more volatile than the S&P 500.

Earnings & Valuation

This table compares Nabtesco and Greenbrier Companies”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nabtesco	$2.14 billion	0.89	$66.79 million	$0.67	23.59
Greenbrier Companies	$3.54 billion	0.44	$160.10 million	$7.06	7.21

Greenbrier Companies has higher revenue and earnings than Nabtesco. Greenbrier Companies is trading at a lower price-to-earnings ratio than Nabtesco, indicating that it is currently the more affordable of the two stocks.

Summary

Greenbrier Companies beats Nabtesco on 12 of the 14 factors compared between the two stocks.

About Nabtesco

Nabtesco Corporation manufactures and sells equipment in the industrial, daily life, and environmental fields in Japan and internationally. The company offers precision reduction gears for industrial robots’ joints; hydraulic equipment, such as traveling unit for crawlers, control valve for mini excavators, and swing unit for hydraulic excavators; railroad vehicle equipment, such as railroad vehicle brake systems, test equipment, door operating units, brake shoes, seat turning equipment, and snow removal devices; and aircraft equipment comprising flight control actuation systems and high voltage electric power distribution units. It also provides air dryers and wedge brake chambers for commercial vehicles, and hydraulic clutch master cylinders for passenger vehicles; engine remote control systems for marine vessels; automatic doors and platform doors for buildings; automatic filters/sealers for retort pouch foods; and prosthetic knee joints and rollator with a speed control system. In addition, the company offers condition monitoring with fail-safe equipment and diagnostic services for wind turbine. Nabtesco Corporation was incorporated in 2003 and is headquartered in Tokyo, Japan.

About Greenbrier Companies

The Greenbrier Companies, Inc. designs, manufactures, and markets railroad freight car equipment in North America, Europe, and South America. It operates through three segments: Manufacturing; Maintenance Services; and Leasing & Management Services. The Manufacturing segment offers covered hopper cars, gondolas, open top hoppers, boxcars, center partition cars, tank cars, sustainable conversions, double-stack railcars, auto-max ii, multi-max, and multi-max plus products, intermodal cars, automobile transport, coil steel and metals, flat cars, sliding wall cars, pressurized tank cars, and non-pressurized tank cars. The Maintenance Services segment provides wheel services, including reconditioning of wheels and axles, new axle machining and finishing, and downsizing; operates a railcar repair, refurbishment, and maintenance network; and reconditions and manufactures railcar cushioning units, couplers, yokes, side frames, bolsters, and various other parts. The Leasing & Management Services segment offers operating leases and per diem leases for a fleet of approximately 13,400 railcars; and management services comprising railcar maintenance management, railcar accounting services, fleet management and logistics, administration, and railcar re-marketing. This segment provides management services for railroads, shippers, carriers, institutional investors, and other leasing and transportation companies. It serves railroads, leasing companies, financial institutions, shippers, carriers, and transportation companies. The company was founded in 1974 and is headquartered in Lake Oswego, Oregon.