Head-To-Head Analysis: GreenPower Motor (NASDAQ:GP) versus Westport Fuel Systems (NASDAQ:WPRT)

Westport Fuel Systems (NASDAQ:WPRT) and GreenPower Motor (NASDAQ:GP) are both small-cap industrials companies, but which is the superior business? We will contrast the two businesses based on the strength of their analyst recommendations, profitability, earnings, institutional ownership, valuation, dividends and risk.

Analyst Recommendations

This is a summary of current recommendations for Westport Fuel Systems and GreenPower Motor, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Westport Fuel Systems	1	2	0	0	1.67
GreenPower Motor	1	1	0	0	1.50

Westport Fuel Systems presently has a consensus price target of $1.00, indicating a potential downside of 43.18%. Given Westport Fuel Systems’ stronger consensus rating and higher possible upside, research analysts clearly believe Westport Fuel Systems is more favorable than GreenPower Motor.

Valuation and Earnings

This table compares Westport Fuel Systems and GreenPower Motor”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Westport Fuel Systems	$23.32 million	1.43	-$61.63 million	($2.41)	-0.73
GreenPower Motor	$16.39 million	0.72	-$5.48 million	($1.66)	-0.99

GreenPower Motor has lower revenue, but higher earnings than Westport Fuel Systems. GreenPower Motor 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.

Risk & Volatility

Westport Fuel Systems has a beta of 2.13, meaning that its share price is 113% more volatile than the S&P 500. Comparatively, GreenPower Motor has a beta of 1.71, meaning that its share price is 71% more volatile than the S&P 500.

Profitability

This table compares Westport Fuel Systems and GreenPower Motor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Westport Fuel Systems	-493.15%	-48.51%	-36.30%
GreenPower Motor	-33.41%	N/A	-12.75%

Insider and Institutional Ownership

21.3% of Westport Fuel Systems shares are held by institutional investors. Comparatively, 1.7% of GreenPower Motor shares are held by institutional investors. 0.8% of Westport Fuel Systems shares are held by insiders. Comparatively, 28.1% of GreenPower Motor 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.

Summary

Westport Fuel Systems beats GreenPower Motor on 7 of the 13 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 GreenPower Motor

GreenPower Motor Company Inc. designs, manufactures, and distributes electric vehicles for commercial markets in the United States and Canada. The company offers commercial vehicles for delivery, public transit, schools, vanpools, micro-transit, shuttles, and other; and passenger, student, low floor transit, and cargo transportation. It leases its vehicles to customers. GreenPower Motor Company Inc. was founded in 2010 and is headquartered in Vancouver, Canada.