American Power Group (OTCMKTS:APGI) and Westport Fuel Systems (NASDAQ:WPRT) are both small-cap oils/energy companies, but which is the superior business? We will compare the two companies based on the strength of their risk, analyst recommendations, valuation, profitability, dividends, earnings and institutional ownership.

Risk and Volatility

American Power Group has a beta of 6.37, meaning that its share price is 537% more volatile than the S&P 500. Comparatively, Westport Fuel Systems has a beta of 2.59, meaning that its share price is 159% more volatile than the S&P 500.

Institutional & Insider Ownership

26.2% of Westport Fuel Systems shares are held by institutional investors. 75.8% of American Power Group shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

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

Net Margins Return on Equity Return on Assets
American Power Group N/A N/A N/A
Westport Fuel Systems -13.13% -40.56% -14.58%

Earnings and Valuation

This table compares American Power Group and Westport Fuel Systems’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
American Power Group $1.86 million 3.70 -$7.55 million N/A N/A
Westport Fuel Systems $247.10 million 0.72 -$9.97 million ($0.44) -3.02

American Power Group has higher earnings, but lower revenue than Westport Fuel Systems.

Analyst Ratings

This is a summary of recent recommendations and price targets for American Power Group and Westport Fuel Systems, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
American Power Group 0 0 0 0 N/A
Westport Fuel Systems 0 2 1 0 2.33

Westport Fuel Systems has a consensus target price of $5.00, suggesting a potential upside of 275.94%. Given Westport Fuel Systems’ higher probable upside, analysts plainly believe Westport Fuel Systems is more favorable than American Power Group.

Summary

American Power Group beats Westport Fuel Systems on 7 of the 11 factors compared between the two stocks.

About American Power Group

American Power Group Corporation provides patented dual fuel conversion system for primary and back-up diesel generators, and mid-to heavy-duty vehicular diesel engines in North America and internationally. It operates through two segments, Dual Fuel Conversion Operations and Natural Gas Liquids Operations. The company's dual fuel conversion system is a fuel delivery enhancement system that converts existing diesel engines into engines, which run on diesel fuel and compressed natural gas or liquefied natural gas; diesel fuel and pipeline gas, well-head gas, or approved bio-methane; and diesel. It also provides flare capture and recovery services to oil and gas production companies. The company was formerly known as GreenMan Technologies, Inc. and changed its name to American Power Group Corporation in August 2012. American Power Group Corporation was founded in 1992 and is based in Lynnfield, Massachusetts.

About Westport Fuel Systems

Westport Fuel Systems Inc. engineers, manufactures, and supplies alternative fuel systems and components for the transportation and industrial markets worldwide. It operates through Transportation and Cummins Westport Inc. Joint Venture segments. The company designs, manufactures, and sells compressed natural gas (CNG) and liquid petroleum gas (LPG) components and systems, such as pressure regulators, injectors, electronic control units, valves, and filters, as well as bi-fuel, mono-fuel, and dual-fuel LPG and CNG conversion kits for passenger cars, light-duty trucks, and medium-duty vehicles, including original engine manufacture (OEM), delayed OEM, and aftermarket segments. It also designs, manufactures, and sells a range of CNG compressors and refueling systems for individuals or small fleets; and LPG injection and natural gas fuel systems, and CNG and LPG systems. In addition, the company offers Westport HPDI 2.0, a complete fully-OEM-integrated system that enables heavy-duty trucks to operate on natural gas; high efficiency spark ignited natural gas system; cryogenic tank and pump products; and cryogenic pumps used in mining, rail, marine, and oil and gas applications. Further, the company offers natural gas or propane engines for transit, school, and shuttle buses; conventional trucks and tractors; refuse collection trucks; and specialty vehicles, such as short-haul port drayage trucks and street sweepers. Westport Fuel Systems Inc. markets its products primarily under the BRC, Prins, Zavoli, OMVL, TA Gas Technology, Valtek, Emer, and CUBOGAS brands. The company was formerly known as Westport Innovations Inc. and changed its name to Westport Fuel Systems Inc. in June 2016. The company was founded in 1995 and is headquartered in Vancouver, Canada.

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