Comparing Miller Industries (NYSE:MLR) & Freightcar America (NASDAQ:RAIL)

Miller Industries (NYSE:MLR) and Freightcar America (NASDAQ:RAIL) are both small-cap industrials companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, earnings, risk, valuation, institutional ownership, dividends and analyst recommendations.

Volatility & Risk

Miller Industries has a beta of 1.12, indicating that its share price is 12% more volatile than the S&P 500. Comparatively, Freightcar America has a beta of 1.42, indicating that its share price is 42% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Miller Industries and Freightcar America, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Miller Industries	0	2	1	0	2.33
Freightcar America	1	1	0	0	1.50

Miller Industries presently has a consensus target price of $54.00, indicating a potential upside of 5.26%. Given Miller Industries’ stronger consensus rating and higher possible upside, equities research analysts plainly believe Miller Industries is more favorable than Freightcar America.

Earnings and Valuation

This table compares Miller Industries and Freightcar America”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Miller Industries	$790.27 million	0.74	$23.01 million	$1.24	41.37
Freightcar America	$500.99 million	0.40	$38.10 million	($0.54)	-11.35

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

Profitability

This table compares Miller Industries and Freightcar America’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Miller Industries	1.86%	3.41%	2.40%
Freightcar America	-2.69%	-15.23%	2.90%

Insider and Institutional Ownership

79.2% of Miller Industries shares are held by institutional investors. Comparatively, 32.0% of Freightcar America shares are held by institutional investors. 4.5% of Miller Industries shares are held by company insiders. Comparatively, 29.2% of Freightcar America 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.

Summary

Miller Industries beats Freightcar America on 10 of the 14 factors compared between the two stocks.

About Miller Industries

Miller Industries, Inc., together with its subsidiaries, manufactures and sells towing and recovery equipment. The company offers wreckers that are used to recover and tow disabled vehicles and other equipment; and car carriers, which are specialized flat-bed vehicles with hydraulic tilt mechanisms, which are used to transport new or disabled vehicles and other equipment. It also provides transport trailers for moving various vehicles for auto auctions, car dealerships, leasing companies, and other similar operations. The company markets its products under the Century, Vulcan, Challenger, Holmes, Champion, Chevron, Eagle, Titan, Jige, and Boniface brands. Miller Industries, Inc. sells its products through independent distributors in North America, and Canada, Mexico; and through prime contractors to governmental entities. Miller Industries, Inc. was incorporated in 1990 and is headquartered in Ooltewah, Tennessee.

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.