Freightcar America (NASDAQ:RAIL) vs. Willis Lease Finance (NASDAQ:WLFC) Head-To-Head Survey

Freightcar America (NASDAQ:RAIL) and Willis Lease Finance (NASDAQ:WLFC) are both small-cap transportation companies, but which is the better stock? We will compare the two companies based on the strength of their dividends, institutional ownership, analyst recommendations, profitability, valuation, earnings and risk.

Profitability

This table compares Freightcar America and Willis Lease Finance’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Freightcar America	-2.21%	-14.89%	6.92%
Willis Lease Finance	18.77%	21.75%	3.61%

Analyst Ratings

This is a breakdown of current ratings for Freightcar America and Willis Lease Finance, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Freightcar America	0	0	1	0	3.00
Willis Lease Finance	0	0	0	0	0.00

Freightcar America currently has a consensus price target of $9.00, suggesting a potential upside of 0.22%. Given Freightcar America’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Freightcar America is more favorable than Willis Lease Finance.

Valuation & Earnings

This table compares Freightcar America and Willis Lease Finance”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Freightcar America	$559.42 million	0.31	-$75.82 million	($0.70)	-12.83
Willis Lease Finance	$569.22 million	1.84	$108.61 million	$16.82	9.17

Willis Lease Finance has higher revenue and earnings than Freightcar America. Freightcar America is trading at a lower price-to-earnings ratio than Willis Lease Finance, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

32.0% of Freightcar America shares are held by institutional investors. Comparatively, 93.7% of Willis Lease Finance shares are held by institutional investors. 28.7% of Freightcar America shares are held by insiders. Comparatively, 53.9% of Willis Lease Finance shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Volatility and Risk

Freightcar America has a beta of 1.85, meaning that its stock price is 85% more volatile than the S&P 500. Comparatively, Willis Lease Finance has a beta of 1.13, meaning that its stock price is 13% more volatile than the S&P 500.

Summary

Willis Lease Finance beats Freightcar America on 9 of the 14 factors compared between the two stocks.

About Freightcar America

FreightCar America, Inc., through its subsidiaries, engages in design, manufacture, and sale of railcars and railcar components for the transportation of bulk commodities and containerized freight products in the United States and Mexico. It operates in two segments, Manufacturing and Parts. The company offers a range of railcars, including open top hoppers, mill gondola cars, intermodal and non-intermodal flat cars, coal cars; bulk commodity cars covered hopper cars, coil steel cars, boxcars, woodchip hoppers, aluminum vehicle carriers, and articulated bulk container railcars. It also sells used railcars; rebuilds, converts, and leases railcars; and sells forged, cast, and fabricated parts for various railcars. The company's customers primarily include shippers, railroads, and financial institutions. FreightCar America, Inc. was founded in 1901 and is headquartered in Chicago, Illinois.

About Willis Lease Finance

Willis Lease Finance Corporation operates as a lessor and servicer of commercial aircraft and aircraft engines worldwide. The company operates through two segments, Leasing and Related Operations, and Spare Parts Sales. The Leasing and Related Operations segment engages in acquiring and leasing commercial aircraft, aircraft engines, and other aircraft equipment, as well as the purchase and resale of commercial aircraft engines and other aircraft equipment, and other related businesses. The Spare Parts Sales segment purchases and resells after-market engine parts, whole engines, engine modules, and portable aircraft components. The company also focuses on engine management and consulting business. It serves commercial aircraft operators, as well as maintenance, repair, and overhaul organizations. As of December 31, 2023, it had a total lease portfolio of 337 engines, 12 aircraft, one marine vessel, and other leased parts and equipment, and with 74 lessees in 42 countries; and managed a total lease portfolio of 198 engines, aircraft, and related equipment for other parties. The company was founded in 1985 and is headquartered in Coconut Creek, Florida.