Freightcar America (NASDAQ:RAIL – Get Free Report) and Douglas Dynamics (NYSE:PLOW – Get Free Report) are both small-cap industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their dividends, earnings, institutional ownership, risk, valuation, profitability and analyst recommendations.
Earnings and Valuation
This table compares Freightcar America and Douglas Dynamics”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Freightcar America | $500.99 million | 0.44 | $38.10 million | ($0.54) | -12.48 |
| Douglas Dynamics | $656.05 million | 1.44 | $46.90 million | $2.20 | 18.64 |
Analyst Recommendations
This is a summary of current recommendations and price targets for Freightcar America and Douglas Dynamics, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Freightcar America | 1 | 1 | 0 | 0 | 1.50 |
| Douglas Dynamics | 0 | 2 | 2 | 1 | 2.80 |
Douglas Dynamics has a consensus price target of $51.67, indicating a potential upside of 25.99%. Given Douglas Dynamics’ stronger consensus rating and higher probable upside, analysts plainly believe Douglas Dynamics is more favorable than Freightcar America.
Risk and Volatility
Freightcar America has a beta of 1.46, meaning that its share price is 46% more volatile than the S&P 500. Comparatively, Douglas Dynamics has a beta of 1.19, meaning that its share price is 19% more volatile than the S&P 500.
Insider and Institutional Ownership
32.0% of Freightcar America shares are held by institutional investors. Comparatively, 91.8% of Douglas Dynamics shares are held by institutional investors. 29.2% of Freightcar America shares are held by insiders. Comparatively, 1.5% of Douglas Dynamics shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.
Profitability
This table compares Freightcar America and Douglas Dynamics’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Freightcar America | -2.69% | -15.23% | 2.90% |
| Douglas Dynamics | 7.52% | 19.03% | 8.07% |
Summary
Douglas Dynamics beats Freightcar America on 13 of the 15 factors compared between the two stocks.
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.
About Douglas Dynamics
Douglas Dynamics, Inc. operates as a manufacturer and upfitter of commercial work truck attachments and equipment in North America. It operates through two segments, Work Truck Attachments and Work Truck Solutions. The Work Truck Attachments segment manufactures and sells snow and ice control attachments, including snowplows, and sand and salt spreaders for light trucks and heavy duty trucks, as well as various related parts and accessories. The Work Truck Solutions segment primarily manufactures municipal snow and ice control products; provides truck and vehicle upfits where it attaches component pieces of equipment, truck bodies, racking, and storage solutions to a vehicle chassis for use by end users for work related purposes; and manufactures storage solutions for trucks and vans, and cable pulling equipment for trucks. This segment also offers up-fit and storage solutions. It also provides customized turnkey solutions to governmental agencies, such as Departments of Transportation and municipalities. The company sells its products under the FISHER, SNOWEX, WESTERN, TURFEX, SWEEPEX, HENDERSON, BRINEXTREME, and DEJANA brands. It distributes its products primarily to professional snowplowers who are contracted to remove snow and ice from commercial and residential areas. The company was founded in 1948 and is headquartered in Milwaukee, Wisconsin.
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