Head-To-Head Review: Freightcar America (NASDAQ:RAIL) versus Nano Dimension (NASDAQ:NNDM)

Nano Dimension (NASDAQ:NNDM) and Freightcar America (NASDAQ:RAIL) are both small-cap industrials companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.

Profitability

This table compares Nano Dimension and Freightcar America’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Nano Dimension	-135.18%	-24.92%	-21.49%
Freightcar America	-2.69%	-15.23%	2.90%

Analyst Recommendations

This is a summary of current recommendations and price targets for Nano Dimension and Freightcar America, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Nano Dimension	1	0	0	0	1.00
Freightcar America	1	1	0	0	1.50

Institutional and Insider Ownership

33.9% of Nano Dimension shares are owned by institutional investors. Comparatively, 32.0% of Freightcar America shares are owned by institutional investors. 13.1% of Nano Dimension shares are owned by insiders. Comparatively, 29.2% of Freightcar America shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Volatility and Risk

Nano Dimension has a beta of 0.99, suggesting that its stock price is 1% less volatile than the S&P 500. Comparatively, Freightcar America has a beta of 1.42, suggesting that its stock price is 42% more volatile than the S&P 500.

Earnings and Valuation

This table compares Nano Dimension and Freightcar America”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Nano Dimension	$120.89 million	2.84	-$293.30 million	($0.46)	-3.54
Freightcar America	$500.99 million	0.45	$38.10 million	($0.54)	-12.78

Freightcar America has higher revenue and earnings than Nano Dimension. Freightcar America is trading at a lower price-to-earnings ratio than Nano Dimension, indicating that it is currently the more affordable of the two stocks.

Summary

Freightcar America beats Nano Dimension on 8 of the 12 factors compared between the two stocks.

About Nano Dimension

Nano Dimension Ltd., together with its subsidiaries, engages in additive manufacturing solutions in Israel and internationally. The company offers 3D printers, comprising AME systems, which are inkjet printers, that produces Hi-PEDs by depositing proprietary conductive and dielectric substances, as well as integrates in-situ capacitors, antennas, coils, transformers, and electromechanical components; micro additive manufacturing systems, a digital light processing printers (DLP) that achieves production-grade polymer and composite parts; and industrial additive manufacturing systems, that utilizes a patented foil system that fabricates ceramic and metal parts. It also provides additive electronics robotics and control systems, which includes surface-mount-technology, an electronics assembly equipment for electronic components on Hi-PEDs and PCBs, catering to various manufacturing and volume requirements; and ink delivery systems, which controls electronics, software, and ink delivery systems for digital printing. In addition, the company sells various materials that are developed in-house, including nanoparticle conductive and dielectric inks, polymer and composite resins, and ceramic and metal slurries, as well as offers software solutions for its products. The company was incorporated in 1960 and is headquartered in Ness Ziona, Israel.

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.