Analyzing TOMI Environmental Solutions (NASDAQ:TOMZ) and Westport Fuel Systems (NASDAQ:WPRT)

Westport Fuel Systems (NASDAQ:WPRT) and TOMI Environmental Solutions (NASDAQ:TOMZ) are both small-cap industrials companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, earnings, dividends, profitability, institutional ownership, risk and valuation.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Westport Fuel Systems and TOMI Environmental Solutions, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Westport Fuel Systems	1	2	1	0	2.00
TOMI Environmental Solutions	1	0	1	0	2.00

Westport Fuel Systems presently has a consensus target price of $1.82, indicating a potential downside of 6.89%. TOMI Environmental Solutions has a consensus target price of $7.00, indicating a potential upside of 391.23%. Given TOMI Environmental Solutions’ higher possible upside, analysts clearly believe TOMI Environmental Solutions is more favorable than Westport Fuel Systems.

Profitability

This table compares Westport Fuel Systems and TOMI Environmental Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Westport Fuel Systems	-493.15%	-51.88%	-37.23%
TOMI Environmental Solutions	-49.77%	-326.81%	-44.61%

Institutional & Insider Ownership

21.3% of Westport Fuel Systems shares are held by institutional investors. Comparatively, 4.8% of TOMI Environmental Solutions shares are held by institutional investors. 0.8% of Westport Fuel Systems shares are held by company insiders. Comparatively, 20.2% of TOMI Environmental Solutions shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Westport Fuel Systems and TOMI Environmental Solutions”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Westport Fuel Systems	$8.50 million	4.01	-$61.63 million	($2.41)	-0.81
TOMI Environmental Solutions	$5.64 million	2.06	-$3.75 million	($0.50)	-2.85

TOMI Environmental Solutions has lower revenue, but higher earnings than Westport Fuel Systems. TOMI Environmental Solutions is trading at a lower price-to-earnings ratio than Westport Fuel Systems, indicating that it is currently the more affordable of the two stocks.

Volatility & Risk

Westport Fuel Systems has a beta of 2.12, meaning that its stock price is 112% more volatile than the S&P 500. Comparatively, TOMI Environmental Solutions has a beta of 1.95, meaning that its stock price is 95% more volatile than the S&P 500.

Summary

Westport Fuel Systems beats TOMI Environmental Solutions on 7 of the 12 factors compared between the two stocks.

About Westport Fuel Systems

Westport Fuel Systems Inc. engages in the engineering, manufacturing, and supplying alternative fuel systems and components for use in transportation applications in Europe, Asia, North America, South America, and internationally. The company operates through two segments, Original Equipment Manufacturers and Independent Aftermarket. It offers alternative fuel systems and components, such as liquefied petroleum gas (LPG), compressed natural gas (CNG), liquefied natural gas (LNG), renewable natural gas or biomethane, and hydrogen; and pressure regulators, injectors, electronic control units, valves and filters, complete bi-fuel, mono-fuel and dual-fuel LPG and natural gas conversion kits and high-pressure hydrogen components. The company provides Westport’s LNG high pressure direct injection 2.0 fuel system and bi-fuel products; offers turnkey solutions covering all process phases, including prototyping, development, calibration, validation, homologation, vehicle conversion and logistic services, as well as systems for diesel-powered vehicles; and supplies hydrogen fuel system components for light, medium, and heavy-duty applications. It offers its products under the AFS, BRC, Emer, GFI, HPDI, Stako, Prins, Zavoli, OMVL, TA Gas Technology, Vialle, and Valtek brands. The company was formerly known as Westport Innovations Inc. and changed its name to Westport Fuel Systems Inc. in June 2016. Westport Fuel Systems Inc. was incorporated in 1995 and is headquartered in Vancouver, Canada.

About TOMI Environmental Solutions

TOMI Environmental Solutions, Inc., a bacteria decontamination and infectious disease control company, engages in the provision of environmental solutions for indoor air and surface disinfection and decontamination in the United States and internationally. The company’s disinfection solutions include SteraPak portable disinfection systems, SteraMist select surface units, SteraMist environment systems, SteraMist total disinfection carts, SteraMist transport units, NV+ fogging disinfection and decontamination systems, SteraMist custom engineered systems, SteraMist Hybrid disinfection systems, SteraMist integrated systems, Stainless Steel 90-Degree applicators, SteraMist plasma decontamination chambers, and iHP Corporate Service Decontamination, which provides full room, equipment, facility, and emergency disinfection and decontamination services. It also manufactures, sells, services, and licenses SteraMist Binary Ionization Technology, a hydrogen peroxide-based mist and fog. The company’s products and services are used in hospitals and medical facilities, bio-safety labs, pharmaceutical facilities, meat and produce processing facilities, universities and research facilities, vivarium labs, and other service industries, including cruise ships, office buildings, hotel and motel rooms, schools, restaurants, military barracks, police and fire departments, prisons, and athletic facilities; and single-family homes and multi-unit residences. TOMI Environmental Solutions, Inc. was incorporated in 1979 and is headquartered in Frederick, Maryland.