Comparing Westport Fuel Systems (NASDAQ:WPRT) & Federal Screw Works (OTCMKTS:FSCR)

Federal Screw Works (OTCMKTS:FSCR) and Westport Fuel Systems (NASDAQ:WPRT) are both small-cap auto/tires/trucks companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, profitability, institutional ownership, earnings and risk.

Earnings & Valuation

This table compares Federal Screw Works and Westport Fuel Systems”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Federal Screw Works	$97.55 million	0.14	$1.62 million	$0.98	10.00
Westport Fuel Systems	$302.30 million	0.11	-$21.84 million	($3.50)	-0.56

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

Insider & Institutional Ownership

21.3% of Westport Fuel Systems shares are owned by institutional investors. 46.2% of Federal Screw Works shares are owned by company insiders. Comparatively, 0.8% of Westport Fuel Systems shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Federal Screw Works and Westport Fuel Systems’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Federal Screw Works	1.36%	N/A	N/A
Westport Fuel Systems	-25.63%	-24.16%	-11.64%

Analyst Ratings

This is a summary of current recommendations for Federal Screw Works and Westport Fuel Systems, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Federal Screw Works	0	0	0	0	0.00
Westport Fuel Systems	1	1	1	1	2.50

Westport Fuel Systems has a consensus target price of $6.60, suggesting a potential upside of 236.73%. Given Westport Fuel Systems’ stronger consensus rating and higher possible upside, analysts plainly believe Westport Fuel Systems is more favorable than Federal Screw Works.

Volatility & Risk

Federal Screw Works has a beta of 1.09, suggesting that its stock price is 9% more volatile than the S&P 500. Comparatively, Westport Fuel Systems has a beta of 2.18, suggesting that its stock price is 118% more volatile than the S&P 500.

Summary

Federal Screw Works beats Westport Fuel Systems on 8 of the 15 factors compared between the two stocks.

About Federal Screw Works

Federal Screw Works manufactures and sells industrial component parts primarily to the automobile industry in the United States. It operates through Big Rapids, Romulus, Traverse City, and Novex Tool divisions. The company offers cold formed and machined pins, including piston pins, planetary and differential gear shafts, and oil pump and steering shafts for the automotive, refrigeration, and small engine industries; and cold formed machined products, such as suspension ball studs, fluid line adapters, and precision formed and machined valve lifter bodies to the automotive industry. It also provides close tolerance machined products that are used in transmission valves, ball joints, steering gear bulkhead assemblies, torque converter hubs, and piston pins; and engineered nut products comprising prevailing torque nuts, free spinning nuts, slotted nuts, nut retainer assemblies, and nut washer assemblies to the automotive industry. In addition, the company offers cold form tooling products, which include assemblies, sleeves, dies, and punches; and complex cold formed parts, such as tie rod housings, valve lifter bodies, and suspension components. Federal Screw Works was founded in 1917 and is based in Romulus, Michigan.

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.