Westport Fuel Systems (NASDAQ:WPRT – Get Free Report) and SES AI (NYSE:SES – Get Free Report) are both small-cap auto/tires/trucks companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, institutional ownership, dividends, analyst recommendations, profitability, risk and earnings.
Insider and Institutional Ownership
21.3% of Westport Fuel Systems shares are held by institutional investors. Comparatively, 29.8% of SES AI shares are held by institutional investors. 0.8% of Westport Fuel Systems shares are held by company insiders. Comparatively, 15.1% of SES AI 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.
Valuation & Earnings
This table compares Westport Fuel Systems and SES AI”s 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 | 0.16 | -$21.84 million | ($2.93) | -0.98 |
| SES AI | $2.04 million | 195.11 | -$100.18 million | ($0.31) | -3.50 |
Westport Fuel Systems has higher revenue and earnings than SES AI. SES AI 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.
Profitability
This table compares Westport Fuel Systems and SES AI’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Westport Fuel Systems | -16.85% | -16.12% | -7.34% |
| SES AI | N/A | -36.08% | -31.29% |
Risk and Volatility
Westport Fuel Systems has a beta of 2.88, meaning that its stock price is 188% more volatile than the S&P 500. Comparatively, SES AI has a beta of 0.42, meaning that its stock price is 58% less volatile than the S&P 500.
Analyst Ratings
This is a summary of recent ratings and target prices for Westport Fuel Systems and SES AI, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Westport Fuel Systems | 0 | 1 | 1 | 0 | 2.50 |
| SES AI | 1 | 1 | 1 | 0 | 2.00 |
Westport Fuel Systems presently has a consensus target price of $6.9333, suggesting a potential upside of 141.58%. SES AI has a consensus target price of $1.50, suggesting a potential upside of 38.25%. Given Westport Fuel Systems’ stronger consensus rating and higher possible upside, research analysts clearly believe Westport Fuel Systems is more favorable than SES AI.
Summary
Westport Fuel Systems beats SES AI on 8 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 SES AI
SES AI Corporation engages in the development and production of high-performance Lithium-metal rechargeable batteries for electric vehicles, electric vehicle take-off and landing, and other applications. The company was founded in 2012 and is headquartered in Woburn, Massachusetts.
Receive News & Ratings for Westport Fuel Systems Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Westport Fuel Systems and related companies with MarketBeat.com's FREE daily email newsletter.
