Head-To-Head Analysis: PHINIA (NYSE:PHIN) & Westport Fuel Systems (NASDAQ:WPRT)

Westport Fuel Systems (NASDAQ:WPRT) and PHINIA (NYSE:PHIN) are both auto/tires/trucks companies, but which is the better stock? We will contrast the two businesses based on the strength of their dividends, profitability, risk, analyst recommendations, valuation, earnings and institutional ownership.

Institutional and Insider Ownership

21.3% of Westport Fuel Systems shares are held by institutional investors. Comparatively, 90.9% of PHINIA shares are held by institutional investors. 0.8% of Westport Fuel Systems shares are held by company insiders. Comparatively, 2.0% of PHINIA shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

Westport Fuel Systems has a beta of 2.14, meaning that its share price is 114% more volatile than the S&P 500. Comparatively, PHINIA has a beta of 1.43, meaning that its share price is 43% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Westport Fuel Systems	-25.63%	-24.16%	-11.64%
PHINIA	2.63%	11.64%	4.78%

Analyst Ratings

This is a breakdown of current ratings for Westport Fuel Systems and PHINIA, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Westport Fuel Systems	1	1	1	0	2.00
PHINIA	0	5	4	2	2.73

Westport Fuel Systems currently has a consensus price target of $6.60, suggesting a potential upside of 295.21%. PHINIA has a consensus price target of $56.43, suggesting a potential upside of 3.64%. Given Westport Fuel Systems’ higher probable upside, analysts plainly believe Westport Fuel Systems is more favorable than PHINIA.

Valuation and Earnings

This table compares Westport Fuel Systems and PHINIA”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Westport Fuel Systems	$302.30 million	0.10	-$21.84 million	($3.50)	-0.48
PHINIA	$3.40 billion	0.62	$79.00 million	$2.22	24.53

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

Summary

PHINIA beats Westport Fuel Systems on 13 of the 15 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 PHINIA

PHINIA Inc. engages in the development, design, and manufacture of integrated components and systems that optimize performance, increase efficiency, and reduce emissions in combustion and hybrid propulsion for commercial and light vehicles, and industrial applications. The company operates through Fuel Systems and Aftermarket segments. The Fuel Systems segment provides advanced fuel injection systems, including pumps, injectors, fuel rail assemblies, and engine control modules; fuel delivery modules; canisters; sensors; and electronic control modules. The segment also offers complete systems comprising associated software and calibration services, that reduce emissions and improve fuel economy for traditional and hybrid applications. The Aftermarket segment is involved in the sale of starters, alternators, and other new and remanufactured products, as well as maintenance, test equipment, and vehicle diagnostics solutions. It servs original equipment manufacturers of passenger cars, trucks, vans, sport-utility vehicles, medium-duty and heavy-duty trucks, and buses, as well as other off-highway construction, marine, and agricultural and industrial applications. PHINIA Inc. was incorporated in 2023 and is based in Auburn Hills, Michigan.