Toro (NYSE:TTC) & Westport Fuel Systems (NASDAQ:WPRT) Head-To-Head Comparison

Toro (NYSE:TTC) and Westport Fuel Systems (NASDAQ:WPRT) are both industrials companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, analyst recommendations, earnings, institutional ownership and risk.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Toro	7.64%	31.86%	12.35%
Westport Fuel Systems	-493.15%	-51.88%	-37.23%

Valuation & Earnings

This table compares Toro and Westport Fuel Systems”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Toro	$4.51 billion	1.95	$316.10 million	$3.74	24.80
Westport Fuel Systems	$8.50 million	3.77	-$61.63 million	($2.41)	-0.76

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

Insider and Institutional Ownership

88.0% of Toro shares are owned by institutional investors. Comparatively, 21.3% of Westport Fuel Systems shares are owned by institutional investors. 1.9% of Toro 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 stock will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and price targets for Toro and Westport Fuel Systems, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Toro	0	4	1	0	2.20
Westport Fuel Systems	1	2	1	0	2.00

Toro presently has a consensus target price of $107.50, indicating a potential upside of 15.91%. Westport Fuel Systems has a consensus target price of $1.82, indicating a potential downside of 0.82%. Given Toro’s stronger consensus rating and higher probable upside, analysts plainly believe Toro is more favorable than Westport Fuel Systems.

Risk & Volatility

Toro has a beta of 0.7, indicating that its stock price is 30% less volatile than the S&P 500. Comparatively, Westport Fuel Systems has a beta of 2.14, indicating that its stock price is 114% more volatile than the S&P 500.

Summary

Toro beats Westport Fuel Systems on 11 of the 13 factors compared between the two stocks.

About Toro

The Toro Company designs, manufactures, markets, and sells professional turf maintenance equipment and services. It operates through two segments: Professional and Residential. The Professional segment offers turf and landscape equipment products, including sports fields and grounds mowing and maintenance equipment, golf course mowing and maintenance equipment, landscape contractor mowing equipment, landscape creation and renovation equipment, and other maintenance equipment; rental, specialty, and underground construction equipment, such as horizontal directional drills, walk and ride trenchers, stand-on skid steers, vacuum excavators, stump grinders, turf renovation products, asset locators, pipe rehabilitation solutions, materials handling equipment, and other after-market tools; and snow and ice management equipment, such as snowplows, as well as stand-on snow and ice removal equipment, such as snowplow, snow brush, and snow thrower attachments, salt and sand spreaders, and related parts and accessories for light and medium duty trucks, utility task vehicles, skid steers, and front-end loaders. This segment also provides irrigation and lighting products that consist of sprinkler heads, electric and hydraulic valves, controllers, computer irrigation central control systems, coupling systems, and ag-irrigation drip tape and hose products, as well as professionally installed landscape lighting products offered through distributors and landscape contractors. The Residential segment provides walk power mowers, zero-turn riding mowers, snow throwers, replacement parts, and home solution products that include grass and hedge trimmers, leaf blowers, blower-vacuums, chainsaws, string trimmers, hoses, and hose-end retail irrigation products. It sells its products through a network of distributors, dealers, mass retailers, hardware retailers, equipment rental centers, home centers, and online. The company was founded in 1914 and is headquartered in Bloomington, Minnesota.

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.