Head to Head Contrast: Greenbrier Companies (NYSE:GBX) vs. ESAB (NYSE:ESAB)

ESAB (NYSE:ESAB) and Greenbrier Companies (NYSE:GBX) are both industrials companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, analyst recommendations, earnings, valuation and profitability.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for ESAB and Greenbrier Companies, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
ESAB	0	1	7	0	2.88
Greenbrier Companies	3	2	0	0	1.40

ESAB currently has a consensus price target of $118.14, suggesting a potential upside of 42.17%. Greenbrier Companies has a consensus price target of $40.33, suggesting a potential downside of 3.33%. Given ESAB’s stronger consensus rating and higher possible upside, equities research analysts plainly believe ESAB is more favorable than Greenbrier Companies.

Dividends

ESAB pays an annual dividend of $0.48 per share and has a dividend yield of 0.6%. Greenbrier Companies pays an annual dividend of $1.36 per share and has a dividend yield of 3.3%. ESAB pays out 19.4% of its earnings in the form of a dividend. Greenbrier Companies pays out 54.8% 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. ESAB has raised its dividend for 3 consecutive years and Greenbrier Companies has raised its dividend for 3 consecutive years.

Valuation and Earnings

This table compares ESAB and Greenbrier Companies”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
ESAB	$2.84 billion	1.82	$226.77 million	$2.47	33.64
Greenbrier Companies	$2.46 billion	0.53	$79.00 million	$2.48	16.82

ESAB has higher revenue and earnings than Greenbrier Companies. Greenbrier Companies is trading at a lower price-to-earnings ratio than ESAB, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

ESAB has a beta of 1.17, indicating that its share price is 17% more volatile than the S&P 500. Comparatively, Greenbrier Companies has a beta of 1.53, indicating that its share price is 53% more volatile than the S&P 500.

Institutional & Insider Ownership

91.1% of ESAB shares are owned by institutional investors. Comparatively, 95.6% of Greenbrier Companies shares are owned by institutional investors. 7.2% of ESAB shares are owned by insiders. Comparatively, 1.7% of Greenbrier Companies shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

This table compares ESAB and Greenbrier Companies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
ESAB	5.05%	14.17%	5.62%
Greenbrier Companies	3.21%	4.85%	1.90%

Summary

ESAB beats Greenbrier Companies on 12 of the 16 factors compared between the two stocks.

About ESAB

ESAB Corporation (NYSE: ESAB) develops and supplies equipment, consumables and digital solutions for welding and cutting. Its products include welding power sources, filler metals, automated welding systems, plasma and gas cutting equipment, and gas control products used in manufacturing, construction, energy and other industrial markets. The company serves customers around the world through a network of manufacturing, sales and distribution operations. Its brands include ESAB and Victor, and its offerings also cover software and services that support welding and cutting workflows.

About Greenbrier Companies

The Greenbrier Companies, Inc. designs, manufactures and markets freight railcars and related equipment. Its products serve a range of cargo needs, including transporting agricultural goods, energy products, construction materials and other freight. The company also provides railcar leasing and fleet management, as well as maintenance, repair, refurbishment and parts services. Through these activities, Greenbrier supports rail transportation customers across North America and international markets.