Nabtesco (OTCMKTS:NCTKF) & GATX (NYSE:GATX) Head-To-Head Analysis

GATX (NYSE:GATX) and Nabtesco (OTCMKTS:NCTKF) are both mid-cap transportation companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, analyst recommendations, valuation, profitability, earnings, dividends and risk.

Insider & Institutional Ownership

93.1% of GATX shares are owned by institutional investors. 2.2% of GATX shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for GATX and Nabtesco, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
GATX	0	1	4	0	2.80
Nabtesco	0	0	0	0	0.00

GATX currently has a consensus target price of $183.50, indicating a potential upside of 4.29%. Given GATX’s stronger consensus rating and higher possible upside, research analysts plainly believe GATX is more favorable than Nabtesco.

Profitability

This table compares GATX and Nabtesco’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%
Nabtesco	3.35%	5.01%	3.24%

Valuation and Earnings

This table compares GATX and Nabtesco”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
GATX	$1.59 billion	3.95	$284.20 million	$8.74	20.13
Nabtesco	$2.14 billion	1.28	$66.79 million	$0.78	29.19

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

Volatility & Risk

GATX has a beta of 1.18, indicating that its share price is 18% more volatile than the S&P 500. Comparatively, Nabtesco has a beta of 0.02, indicating that its share price is 98% less volatile than the S&P 500.

Summary

GATX beats Nabtesco on 11 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 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.