GATX (NYSE:GATX – Get Free Report) and AmeraMex International (OTCMKTS:AMMX – Get Free Report) are both transportation companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, earnings, profitability, analyst recommendations, institutional ownership, valuation and dividends.
Profitability
This table compares GATX and AmeraMex International’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
GATX | 19.13% | 12.52% | 2.49% |
AmeraMex International | -4.63% | -25.15% | -3.85% |
Institutional and Insider Ownership
93.1% of GATX shares are owned by institutional investors. 2.2% of GATX shares are owned by company insiders. Comparatively, 49.4% of AmeraMex International shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Valuation and Earnings
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
GATX | $1.59 billion | 3.78 | $284.20 million | $8.74 | 19.26 |
AmeraMex International | $14.97 million | 0.10 | -$1.16 million | ($0.08) | -1.19 |
GATX has higher revenue and earnings than AmeraMex International. AmeraMex International is trading at a lower price-to-earnings ratio than GATX, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
GATX has a beta of 1.18, meaning that its stock price is 18% more volatile than the S&P 500. Comparatively, AmeraMex International has a beta of 0.16, meaning that its stock price is 84% less volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings and price targets for GATX and AmeraMex International, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
GATX | 0 | 1 | 2 | 0 | 2.67 |
AmeraMex International | 0 | 0 | 0 | 0 | 0.00 |
GATX presently has a consensus target price of $177.67, suggesting a potential upside of 5.52%. Given GATX’s stronger consensus rating and higher possible upside, analysts clearly believe GATX is more favorable than AmeraMex International.
Summary
GATX beats AmeraMex International on 13 of the 14 factors compared between the two stocks.
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.
About AmeraMex International
AmeraMex International, Inc. sells, leases, and rents new and refurbished heavy equipment primarily in the United States. Its products are used in light and infrastructure construction, shipping logistics, logging, mining, transportation, commercial farming, and forestry industries. The company also sells parts; and provides repair and maintenance services. It serves customers in the United States, Canada, Latin America, Asia, and Africa. The company was founded in 1989 and is based in Chico, California.
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