Comparing GATX Corporation (GATX) and Fortress Transportation and Infrastructure Investors (FTAI)

GATX Corporation (NYSE: GATX) and Fortress Transportation and Infrastructure Investors (NYSE:FTAI) are both transportation companies, but which is the superior investment? We will contrast the two companies based on the strength of their risk, earnings, valuation, analyst recommendations, institutional ownership, profitability and dividends.

Institutional & Insider Ownership

26.2% of Fortress Transportation and Infrastructure Investors shares are held by institutional investors. 3.5% of GATX Corporation shares are held by company insiders. Comparatively, 0.9% of Fortress Transportation and Infrastructure Investors shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares GATX Corporation and Fortress Transportation and Infrastructure Investors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
GATX Corporation 17.09% 17.83% 3.46%
Fortress Transportation and Infrastructure Investors -4.98% 0.27% 0.19%

Dividends

GATX Corporation pays an annual dividend of $1.68 per share and has a dividend yield of 2.7%. Fortress Transportation and Infrastructure Investors pays an annual dividend of $1.32 per share and has a dividend yield of 7.8%. GATX Corporation pays out 28.4% of its earnings in the form of a dividend. Fortress Transportation and Infrastructure Investors pays out -1,100.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Fortress Transportation and Infrastructure Investors is clearly the better dividend stock, given its higher yield and lower payout ratio.

Volatility & Risk

GATX Corporation has a beta of 1.19, indicating that its share price is 19% more volatile than the S&P 500. Comparatively, Fortress Transportation and Infrastructure Investors has a beta of 1.93, indicating that its share price is 93% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current recommendations and price targets for GATX Corporation and Fortress Transportation and Infrastructure Investors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
GATX Corporation 1 4 1 0 2.00
Fortress Transportation and Infrastructure Investors 0 0 2 0 3.00

GATX Corporation presently has a consensus target price of $55.80, indicating a potential downside of 8.82%. Fortress Transportation and Infrastructure Investors has a consensus target price of $18.25, indicating a potential upside of 7.35%. Given Fortress Transportation and Infrastructure Investors’ stronger consensus rating and higher probable upside, analysts clearly believe Fortress Transportation and Infrastructure Investors is more favorable than GATX Corporation.

Valuation & Earnings

This table compares GATX Corporation and Fortress Transportation and Infrastructure Investors’ revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
GATX Corporation $1.39 billion 1.70 $660.20 million $5.92 10.34
Fortress Transportation and Infrastructure Investors $179.94 million 7.16 $78.05 million ($0.12) -141.67

GATX Corporation has higher revenue and earnings than Fortress Transportation and Infrastructure Investors. Fortress Transportation and Infrastructure Investors is trading at a lower price-to-earnings ratio than GATX Corporation, indicating that it is currently the more affordable of the two stocks.

Summary

Fortress Transportation and Infrastructure Investors beats GATX Corporation on 8 of the 15 factors compared between the two stocks.

GATX Corporation Company Profile

GATX Corporation is a global railcar lessor, owning fleets in North America, Europe, and Asia. In addition, the Company operates fleet of the United States-flagged vessels on the Great Lakes and jointly with Rolls-Royce plc, it owns aircraft spare engine lease portfolios in the world. It operates through four business segments: Rail North America, Rail International, American Steamship Company (ASC), and Portfolio Management. As of December 31, 2016, it owned fleet of approximately 146,300 railcars. It offers customers leasing, maintenance, asset, financial, and management expertise. It leases tank cars, freight cars, and locomotives in North America, tank cars and freight cars in Europe and freight cars in India and Russia. As of December 31, 2016, it also had an ownership interest in an affiliate investment that owned approximately 2,200 railcars, and it managed approximately 400 railcars for other third-party owners.

Fortress Transportation and Infrastructure Investors Company Profile

Fortress Transportation and Infrastructure Investors LLC owns and acquires infrastructure and equipment that is essential for the transportation of goods and people across the world. The Company operates through five segments Aviation Leasing, Offshore Energy, Shipping Containers, Jefferson Terminal and Railroad. The Aviation Leasing segment consists of aircraft and aircraft engines held for lease for long-term. The Offshore Energy segment consists of vessels and equipment that support offshore oil and gas activities and held for long-term operating leases. The Shipping Containers segment consists of an investment in an unconsolidated entity engaged in the acquisition and leasing of shipping containers on both an operating lease and finance lease basis. The Jefferson Terminal segment consists of a multi-modal crude and refined products terminal and other related assets. The Railroad segment consists of the Company’s Central Maine and Quebec Railway (CMQR).

Receive News & Ratings for GATX Corporation Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for GATX Corporation and related companies with MarketBeat.com's FREE daily email newsletter.

Latest News

Leave a Reply