Head-To-Head Analysis: Pony AI (NASDAQ:PONY) & GATX (NYSE:GATX)

Pony AI (NASDAQ:PONY) and GATX (NYSE:GATX) are both mid-cap transportation companies, but which is the superior investment? We will contrast the two businesses based on the strength of their risk, analyst recommendations, institutional ownership, valuation, dividends, earnings and profitability.

Profitability

This table compares Pony AI and GATX’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Pony AI	N/A	N/A	N/A
GATX	19.13%	12.52%	2.49%

Insider & Institutional Ownership

93.1% of GATX shares are owned by institutional investors. 2.2% of GATX shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Earnings & Valuation

This table compares Pony AI and GATX”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Pony AI	$75.03 million	74.84	-$274.12 million	N/A	N/A
GATX	$1.59 billion	3.55	$284.20 million	$8.74	18.09

GATX has higher revenue and earnings than Pony AI.

Analyst Ratings

This is a summary of recent recommendations for Pony AI and GATX, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Pony AI	0	0	5	1	3.17
GATX	0	1	2	0	2.67

Pony AI currently has a consensus price target of $19.40, suggesting a potential upside of 21.02%. GATX has a consensus price target of $177.6667, suggesting a potential upside of 12.35%. Given Pony AI’s stronger consensus rating and higher probable upside, analysts clearly believe Pony AI is more favorable than GATX.

Summary

GATX beats Pony AI on 7 of the 12 factors compared between the two stocks.

About Pony AI

Pony AI Inc., through its subsidiaries, engages in the autonomous mobility principally in the People’s Republic of China and the United States. The company provides robotruck services, such as transportation services to the logistics platforms. Pony AI Inc. is based in Guangzhou, the People’s Republic of China.

About GATX

GATX Corporation, together its subsidiaries, operates as railcar leasing company in the United States, Canada, Mexico, Europe, and India. It operates through three segments: Rail North America, Rail International, and Portfolio Management. The company leases tank and freight railcars, and locomotives for petroleum, chemical, food/agriculture, and transportation industries. It also offers maintenance services, including the interior cleaning of railcars, routine maintenance and repair of car body and safety appliances, regulatory compliance works, wheelset replacements, interior blast and lining, exterior blast and painting, and car stenciling services. In addition, the company manufactures commercial aircraft jet engines and leases aircraft spare engines; and owns and manages tank containers that are leased to chemical, industrial gas, energy, food, cryogenic and pharmaceutical industries, and tank container operators, as well as provides tank container sourcing, remarketing, and inspection and maintenance services. As of December 31, 2023, it owned and operated a fleet of approximately 148,500 railcars; 493 four-axle and 30 six-axle locomotives; 399 aircraft spare engines; and 23,931 tank containers. GATX Corporation was founded in 1898 and is headquartered in Chicago, Illinois.