Middleby (NASDAQ:MIDD – Get Free Report) and Freightcar America (NASDAQ:RAIL – Get Free Report) are both industrials companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, risk, profitability, institutional ownership, earnings and dividends.
Profitability
This table compares Middleby and Freightcar America’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Middleby | -13.22% | 17.44% | 7.66% |
| Freightcar America | -2.69% | -15.23% | 2.90% |
Analyst Recommendations
This is a summary of recent recommendations for Middleby and Freightcar America, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Middleby | 2 | 1 | 6 | 0 | 2.44 |
| Freightcar America | 1 | 1 | 0 | 0 | 1.50 |
Insider and Institutional Ownership
98.5% of Middleby shares are owned by institutional investors. Comparatively, 32.0% of Freightcar America shares are owned by institutional investors. 9.7% of Middleby shares are owned by company insiders. Comparatively, 29.2% of Freightcar America shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Valuation & Earnings
This table compares Middleby and Freightcar America”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Middleby | $3.20 billion | 1.53 | -$277.73 million | ($9.26) | -11.67 |
| Freightcar America | $500.99 million | 0.49 | $38.10 million | ($0.54) | -13.74 |
Freightcar America has lower revenue, but higher earnings than Middleby. Freightcar America is trading at a lower price-to-earnings ratio than Middleby, indicating that it is currently the more affordable of the two stocks.
Risk & Volatility
Middleby has a beta of 1.31, meaning that its stock price is 31% more volatile than the S&P 500. Comparatively, Freightcar America has a beta of 1.46, meaning that its stock price is 46% more volatile than the S&P 500.
Summary
Middleby beats Freightcar America on 9 of the 14 factors compared between the two stocks.
About Middleby
The Middleby Corporation designs, markets, manufactures, distributes, and services foodservice, food processing, and residential kitchen equipment worldwide. Its Commercial Foodservice Equipment Group segment offers conveyor, combi, convection, baking, proofing, deck, speed cooking, and hydrovection ovens; ranges, fryers, and rethermalizers; steam cooking, food warming, catering, induction cooking, and countertop cooking equipment; heated cabinets, charbroilers, ventless cooking systems, kitchen ventilation, toasters, griddles, charcoal grills, professional mixers, stainless steel fabrication, custom millwork, professional refrigerators, blast chillers, cold rooms, ice machines, and freezers; soft serve ice cream, coffee and beverage dispensing, home and professional craft brewing equipment; and fry dispensers, bottle filling and canning equipment, IoT solutions, and controls development and manufacturing. The company's Food Processing Equipment Group segment provides batch, baking, proofing, conveyor belt, and continuous processing ovens; frying and automated thermal processing systems; tumblers, massagers, grinders, slicers, reduction and emulsion systems, mixers, and blenders; battering, breading, and seeding equipment; water cutting systems, food presses, food suspension equipment, filling and depositing solutions, and forming equipment; and automated washing systems, auto-guided vehicles, food safety, food handling, freezing, and defrosting and packaging equipment. Its Residential Kitchen Equipment Group segment offers kitchen equipment comprising cookers, stoves, cooktops, microwaves, ovens, refrigerators, dishwashers, undercounter refrigeration, wine cellars, ice machines, beer dispensers, mixers, rotisseries, and ventilation and outdoor cooking equipment. The company was formerly known as Middleby Marshall Oven Company and changed its name to The Middleby Corporation in 1985. The company was founded in 1888 and is based in Elgin, Illinois.
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.
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